RAISING WAGES IS NOT THE ULTIMATE SILVER BULLET FOR POVERTY

Introduction

People tend to focus on how much more money in local currency terms they earn and ignore adjustments for inflation. If you receive an annual increase in salary of 7% and inflation is 8%…

NEED FOR SUPPORT OF SMES IN KENYA

As much as one would want to believe in free markets where businesses require no support from governments, in a world where there are governments that are already actively supporting their businesses to give them competitive advantages in local and international…

Opinion: Thoughts on Implementation of Cashless System in Kenya

Earlier on in the year the Kenyan government gazetted regulations that were to outlaw the use of cash for bus fare payments from July 2014 but the deadline was pushed further to December. Since then mobile service…

A few lessons from Berkshire Hathaway Annual Shareholder Letters

Warren Buffet has slowly risen back to become the second richest man on the planet,businesses he bought are making record profits. Warren Buffett is legendary as an investor, but he’s also an incredibly successful…

True Cost of Government Budget Financing Through External Debt?

Borrowed funds are not necessarily bad, in fact if efficiently used in capital investments; they can enhance productivity and help stimulate economic growth. Borrowing for investments is not the same as borrowing to fund…

What Bank of Japan is Doing to Promote Financial Education

Extract from Dept Governor Iwata’s speech

Changes in financial behavior and challenges presented by the aging population and declining birthrate

The need for improved financial…

Private Equity in Kenya

In wealth creation there is various investment vehicles that one can choose to use to grow their money and secure their old age. Private equity happens to be one of the ways to invest your hard earned money and watch it grow over a specified period of time.

To defend or not to defend local currency strength?

I have seen consistently analysts and economists argue in the media for the central bank to intervene and push back exchange rate to below 90 against the dollar and respond to inflationary pressures by quickly raising key interest rates. I…

Defending the Shilling against Dollar?

Globalization and deregulation have gone hand in hand. Deregulation on a global perspective has put capital in a position that it can move around freely and therefore it will go to where it less regulated and can optimize investor returns by being competitive…

Making money from bonds speculation

A number of companies are listing bonds at the Nairobi Securities Exchange and the Eurobond as well was listed there. There have been attempts as well to lower the minimum amount required to invest in bonds from the current 100k to a figure most Kenyans would afford…