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Overview of Kenya’s Economy 2018

Victor Mochere

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Overview of Kenya's Economy

In 2017, Kenya’s economy kicked off with fears of a decline due to heated political temperatures pegged on the elections slated for August that year. The GDP growth in 2017 was initially projected to grow at 5.9% but later reduced to 5.5% which again was cut to 5.0%, amid speculations that the growth will worsen due to the highly charged and divided forthcoming elections. This growth was however to be sustained by continued low international oil prices, continued stability of the Kenya shilling (KES), improved security as a boost to tourism and continued reforms in governance and justice. The National Treasury later announced a drop in revenue collections for the first four months of the 2017/18 (July-June) fiscal year that had fallen short by Ksh 40 billion.

 

According to the Kenya National Bureau of Statistics (KNBS)’s 2017 quarterly reports:

 

In the first quarter, the economy rose by 4.7% compared to 5.9% in the same quarter of 2016. This decline was attributed to sluggish growth of Agriculture, Financial Intermediation and Electricity supply. Drought also played a major role in this decline due to the short rains experienced in the period under review. Finance and Insurance sectors portrayed a staggering growth due to commercial banks reducing lending to the private sector. Sectors that recorded improvement include; Accommodation, Food services, Wholesale and Retail trade, Real estate, Transport and Storage, and Information and Communication. There was a 62.2% increase in the international oil prices in the period under review as compared to the same quarter in 2016. Inflation averaged at 8.8% overshooting the Central Bank’s upper limit of 7.5%. However there was a moderate buildup in inflationary pressures as a result of significant increases in prices of food and beverages during the period under review. Interest rates reduced significantly as a result of the capping effected in September 2016. The Kenyan Shilling strengthened against most trading currencies, with a notable gain of 12.1% against the Pound Sterling. However, the Shilling weakened against the South African Rand, Yen and US Dollar in the same quarter.

 

In the second quarter, the economy grew by 5.0% compared to 6.3% in 2016 for the same period. This growth was characterized by subdued performances in the following sectors; Agriculture at 1.4% attributed to widespread drought experienced during the fourth quarter of 2016. Electricity supply at 6.1% due to the short rains, Financial Intermediation at 4.3% as a result of slow uptake of credit. Manufacturing sector also recorded a dampened growth at 2.3%. This quarter recorded drastic increases in food prices as a result of adverse weather conditions and notable rise in the international oil prices. Thereby inflation increasing from 5.36% in 2016 up to 10.80% for the period under review. As a result of significant increase in the value of imports, the current account deficit widened to KSh 134.8 billion from a deficit of KSh 114.1 billion in same quarter of 2016. However, some sectors recorded growth including; Transport and Storage, Real Estate, Information and Communication Technology, Accommodation, Food, Wholesale and Retail Trade. The Kenyan Shilling weakened against the US dollar, South African Rand and Tanzanian Shilling but strengthened against the sterling pound and Ugandan Shilling, with a stagnant change against the Euro and the Japanese Yen. Lending rates by commercial banks dropped to 13.63% up from 18.15% in 2016 under the same quarter.

 

In the third quarter, the economy expanded by 4.4% compared to 5.6% in 2016 in the same period. This dampened growth was largely pegged on the uncertainties in the political environment and adverse weather conditions. The economy was further buffeted by political risks after the Supreme Court nullified President Uhuru Kenyatta’s win in the August 8 election and ordered a re-run that was boycotted by the opposition led by its leader The Right Honourable Raila Odinga. This quarter recorded the slowest growth since the fourth quarter of 2013, as most sectors recorded a sluggish growth. Financial and Insurance activities posted the largest drop, decelerating to 2.4% up from 7.1% in 2016 for the period under review. Other sectors that recorded decline in growth include; Manufacturing, Health, Accommodation and Food services; Mining and quarrying, and Education. However, some sectors recorded improvements; Professional, Administration and Support services; Public administration and Real estate activities. Inflation hiked to 7.5% as compared to 6.3% in the same quarter of 2016, a rise attributed to a surge in prices of food and non-alcoholic beverages. As a result of faster growth in imports compared to that of exports leading to deterioration in merchandise trade deficit, the current account deficit worsened by 28.9% to KSh 145.4 billion from a deficit of KSh 112.8 billion in same quarter of 2016. Murban Adnoc crude oil prices increased by 10.2% to $51.05/Barrel down from USD $46.32/Barrel in the same quarter of 2016. With the Central Bank Rate (CBR) maintaining at 10.0% throughout the quarter, interest rates on commercial banks loans decelerated to 13.67% as compared to 16.54 % for the same quarter of 2016, this was as a result of the capping of interest rates that started in September 2016. The Kenyan Shilling strengthened against the Pound Sterling, Japanese Yen, Ugandan Shilling, Tanzanian Shilling but weakened against the US Dollar, the Euro and South Africa Rand.

 

2018 ushered in with high hopes that Kenya’s economy will rebound after drought and political turmoil during a prolonged election cycle. Projections have placed the GDP growth at 6.5%. The government plans to issue another Eurobond, to be used to repay an outstanding amount of a $750 million syndicated loan that the government raised in 2015 from a group of 26 banks paying at a margin of 520 basis points over LIBOR, that matured in October 2017, this is after issuing a $2 billion dollar-denominated Eurobond in 2014. With 90% of investors in that loan agreeing to extend the maturity by six months until April 2018, with the option of refinancing it by a Eurobond. Kenya still remain a regional hub for trade, diplomacy and security in Eastern and Central Africa, but with fears that the country is losing its grip over the dominance it has controlled in the past.

Kenya’s Economic Data

 20122013201420152016
Population (million)40.741.843.044.245.5
GDP per capita (USD)1,2431,3221,4331,4271,558
GDP (USD bn)50.655.361.663.170.8
Economic Growth (GDP, annual variation in %)4.55.95.45.75.8
Consumption (annual variation in %)5.78.54.65.14.8
Investment (annual variation in %)12.71.214.86.7-9.3
Industrial Production (annual variation in %)4.15.45.36.16.0
Fiscal Balance (% of GDP)-6.0-6.8-7.0-9.6-8.1
Public Debt (% of GDP)42.144.545.950.453.5
Money (annual variation in %)17.213.818.612.84.8
Inflation Rate (CPI, annual variation in %, eop)3.27.26.08.06.4
Inflation Rate (CPI, annual variation in %)9.45.76.96.66.3
Policy Interest Rate (%)11.008.508.5011.5010.00
Exchange Rate (vs USD)86.0086.4590.55102.3102.5
Exchange Rate (vs USD, aop)84.5386.1387.9598.27101.5
Current Account (% of GDP)-8.4-8.1-9.8-6.8-5.2
Current Account Balance (USD bn)-4.3-4.5-6.0-4.3-3.7
Trade Balance (USD billion)-10.2-10.5-12.4-10.1-7.9
Exports (USD billion)6.15.96.15.95.7
Imports (USD billion)16.316.418.515.913.6
Exports (annual variation in %)7.0-3.62.7-3.4-2.4
Imports (annual variation in %)11.00.412.6-13.8-14.4
International Reserves (USD)5.76.67.97.57.6
External Debt (% of GDP)23.524.827.130.4
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I’m a literati savant, altruistic, queer laughist, critique from the non-core academia and above all it’s my conviction that in all my papers the rule of three applies.

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Taylor Swift Net Worth

Victor Mochere

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Taylor Swift Net Worth

Net Worth:

$400 Million

Age:

28

Born:

December 13, 1989

Country of Origin:

United States of America

Source of Wealth:

Professional Singer

Last Updated:

2018

Taylor Alison Swift (born December 13, 1989) is an American singer-songwriter. One of the world’s leading contemporary recording artists, she is known for narrative songs about her personal life, which have received widespread media coverage.

 

Born and raised in Pennsylvania, Swift moved to Nashville, Tennessee at the age of 14 to pursue a career in country music. She signed with the label Big Machine Records and became the youngest artist ever signed by the Sony/ATV Music publishing house. Her 2006 self-titled debut album peaked at number five on the Billboard 200 and spent the most weeks on the chart in the 2000s. The album’s third single, “Our Song”, made her the youngest person to single-handedly write and perform a number-one song on the Hot Country Songs chart. Swift’s second album, Fearless, was released in 2008. Buoyed by the success of pop crossover singles “Love Story” and “You Belong with Me”, Fearless became the best-selling album of 2009 in the US. The album won four Grammy Awards, with Swift becoming the youngest Album of the Year winner.

 

Swift was the sole writer of her 2010 album, Speak Now. It debuted at number one in the United States and the single “Mean” won two Grammy Awards. Her fourth album, Red (2012), yielded the successful singles “We Are Never Ever Getting Back Together” and “I Knew You Were Trouble”. For her fifth album, the pop-focused 1989 (2014), she received three Grammys, and became the first woman and fifth act overall to win Album of the Year twice. Its singles “Shake It Off”, “Blank Space”, and “Bad Blood” reached number one in the US, Australia, and Canada. Swift’s sixth album, Reputation (2017) and its lead single “Look What You Made Me Do” topped the UK and US charts; with the former, she became the first act to have four albums sell one million copies within one week in the US.

 

Swift is one of the best-selling music artists of all time, having sold more than 40 million albums—including 27.8 million in the US—and 130 million single downloads. As a songwriter, she has received awards from the Nashville Songwriters Association and the Songwriters Hall of Fame, and was included in Rolling Stone’s 100 Greatest Songwriters of All Time in 2015. She is also the recipient of 10 Grammys, one Emmy, 23 Billboard Music Awards, and 12 Country Music Association Awards, and she holds six Guinness World Records. She has appeared in Time’s 100 most influential people in the world (2010 and 2015) and Forbes’ lists of top-earning women in music (2011–2015), 100 most powerful women (2015), and Celebrity 100 (2016). Her inclusion in the third of these made her the youngest woman on the list, and she ranked first in Celebrity 100.

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Beyoncé Net Worth

Victor Mochere

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Beyoncé Net Worth

Net Worth:

$500 Million

Age:

37

Born:

September 4, 1981

Country of Origin:

United States of America

Source of Wealth:

Professional Singer/Actress

Last Updated:

2018

Beyoncé Giselle Knowles-Carter (born September 4, 1981) is an American singer, songwriter, producer, and actress. Born and raised in Houston, Texas, Beyoncé performed in various singing and dancing competitions as a child. She rose to fame in the late 1990s as lead singer of the R&B girl-group Destiny’s Child. Managed by her father, Mathew Knowles, the group became one of the best-selling girl groups in history. Their hiatus saw Beyoncé’s theatrical film debut in Austin Powers in Goldmember (2002) and the release of her debut album, Dangerously in Love (2003). The album established her as a solo artist worldwide, debuting at number one on the US Billboard 200 chart and earning five Grammy Awards, and featured the Billboard Hot 100 number one singles “Crazy in Love” and “Baby Boy”.

 

Following the break-up of Destiny’s Child in 2006, she released her second solo album, B’Day (2006), which contained her fourth number one single, “Irreplaceable”, as well as the top ten singles “Déjà Vu”, and “Beautiful Liar”. Beyoncé also continued her acting career, with starring roles in The Pink Panther (2006), Dreamgirls (2006), and Obsessed (2009). Her marriage to rapper Jay-Z and portrayal of Etta James in Cadillac Records (2008) influenced her third album, I Am … Sasha Fierce (2008), which saw the introduction of her alter-ego Sasha Fierce and earned a record-setting six Grammy Awards in 2010, including Song of the Year for “Single Ladies (Put a Ring on It)”. Beyoncé took a hiatus from music in 2010 and took over management of her career; her fourth album 4 (2011) was subsequently mellower in tone, exploring 1970s funk, 1980s pop, and 1990s soul. Her critically acclaimed eponymous album, released in 2013 with no prior announcement, was distinguished from previous releases by its experimental production and exploration of darker themes. Her sixth album, Lemonade (2016), also received widespread critical acclaim, with many referring to it as her most personal and political work to date, and subsequently became the best-selling album of 2016. She released Everything Is Love, her seventh album, a collaboration with husband Jay-Z as The Carters in 2018.

 

Throughout her career, Beyoncé has sold over 100 million records worldwide, making her one of the world’s best-selling music artists. She has won 22 Grammy Awards and is the most nominated woman in the award’s history. She is also the most awarded artist at the MTV Video Music Awards, with 24 wins, including the Michael Jackson Video Vanguard Award. The Recording Industry Association of America recognized Beyoncé as the Top Certified Artist in America, during the 2000s decade. In 2009, Billboard named her the Top Radio Songs Artist of the Decade, the Top Female Artist of the 2000s decade, and awarded her their Millennium Award in 2011. In 2014, she became the highest-paid black musician in history and was listed among Time’s 100 most influential people in the world for a second year in a row. Forbes ranked her as the most powerful female in entertainment on their 2015 and 2017 lists, and in 2016 she occupied the sixth place for Time’s Person of the Year. With the release of Lemonade, Beyoncé became the first and only musical act in Billboard chart history to debut at number one with their first six solo studio albums.

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Kim Jong-Un Net Worth

Victor Mochere

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Kim Jong-Un Net Worth

Net Worth:

$5 Billion

Age:

34

Born:

January 8, 1984

Country of Origin:

North Korea

Source of Wealth:

President of North Korea

Last Updated:

2018

Kim Jong-un (born 8 January 1983) is a North Korean politician serving as Supreme Leader of North Korea since 2011 and Leader of the Workers’ Party of Korea since 2012. Kim is the second child of Kim Jong-il (1941–2011) and Ko Yong-hui (1952–2004). The grandson of Kim Il-sung, the first leader of North Korea from 1948 to 1994, he is the first North Korean leader to have been born after the country’s founding.

 

From late 2010, Kim Jong-un was viewed as heir apparent to the leadership of the DPRK, and following the elder Kim’s death, he was announced as the “Great Successor” by North Korean state television. Kim holds the titles of Chairman of the Workers’ Party of Korea (as First Secretary between 2012 and 2016), Chairman of the Central Military Commission, Chairman of the State Affairs Commission, Supreme Commander of the Korean People’s Army, and member of the Presidium of the Politburo of the Workers’ Party of Korea, the highest decision-making body in North Korea. Kim was promoted to the rank of Marshal of North Korea in the Korean People’s Army on 18 July 2012, consolidating his position as the Supreme Commander of the Armed Forces and is often referred to as Marshal Kim Jong-un or “the Marshal” by state media.  Kim obtained two degrees, one in physics at Kim Il-sung University, and another as an Army officer at the Kim Il-sung Military University.

 

Forbes magazine ranked Kim the 46th most powerful person in the world in 2013 and the third highest amongst Koreans after Ban Ki-moon and Lee Kun-hee. On 12 December 2013, North Korean news outlets reported that Kim Jong-un had ordered the execution of his uncle Jang Song-thaek due to “treachery”. On 9 March 2014, Kim was elected unopposed to the Supreme People’s Assembly. He is widely believed to have ordered the assassination of his half-brother, Kim Jong-nam, in Malaysia in February 2017.

 

Despite tense relations, North Korea agreed to participate in the 2018 Winter Olympics in Pyeongchang. Following the Olympics, Kim Jong-un and President Moon Jae-in conducted the April 2018 inter-Korean summit. It was the first time since the end of the Korean War in 1953 that a North Korean leader entered the South’s territory. On 12 June 2018, Kim Jong-un and US President Donald Trump met for the 2018 North Korea–United States summit in Singapore, the first-ever talks held between a North Korean leader and a sitting US President, to discuss the North Korean nuclear program.

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