East Africa Economic Report

Kenyan SGR: Mombasa-Nairobi Section operational The Naivasha-Kisumu SGR line technically and commercially unviable, we can report. That is why the Chinese cannot finance it. Kenya is, therefore, well advised to focus on the Naivasha-Malaba line which will   link to Uganda and on to Rwanda, Eastern Democratic Republic of Congo, and eventually Juba, in South Sudan. That was the original goal and design of the standard Gauge Railway line, to provide seamless railway connection between Mombasa Port and its hinterland. That would raise its economic and commercial viability. Also, Read  http://eaers.blogspot.com/2013/07/coming-soon-mombasa-kigali-express.html The purpose of a Standard Gauge Railway line is to provide high- speed, cheap and reliable network for faster transportation of goods and people. The purpose is well served by a line linking Kampala through Malaba than through Lake Victoria. Tunneling Nairobi-Naivasha Section While a high-speed Railway linki...

IMF's projection of Tanzania's  growth path to 2024  Tanzania has posted the lowest budget growth in the East Africa region. The financial year 2019/2020 budget statements, read simultaneously in five parliaments last week, posted on average a 12.52 percent increase over the last financial year without Tanzania. With Tanzania, the average growth declined to 10.40 percent. The Tanzanian budget increased 1.9 percent over the previous year to US$14.3 billion. The leader is Uganda who posted a 21 percent expansion in the budget to US$10.7 billion; Rwanda 11 percent to $3.16 billion; Kenya 10.3 percent to $30 billion; and Burundi 7.2 percent. Tanzania’s budget rose to Tshs 33.1 trillion ($14.3 billion) from Tshs 32.48 trillion (US$15 billion) in the last financial year.   In absolute terms, the budget expanded by Tshs 600 billion (US$222.8 million). However, depreciation of the local currency reduced the value in US dollar terms compared to the previous year. The...

Tanzania's SGR: under Construction According to a recent report on the Construction Magazine, www.constructioreviewonline.com , the 300 Kilometre Dar-Es-Salaam –Morogoro Standard Gauge Railway Line will cost US$1.9 billion.   And in a video clip Broadcast by Tanzania Railways Corporation, TRC,  https://www.youtube.com/watch?v=vrcv3CBi63E , the line, the Minister said, was funded by the Tanzania taxpayer. Eureka! East African watchers say. “This explains the sudden surge in resource nationalism in Tanzania,” said a Nairobi based economist. The line attracted no takers after the fallout with the Chinese in 2015. Yet implementation still went on and the financiers were a mystery. The project was too pricey for the Tanzania budget which was US$15 billion in the 2018/2019 financial year, data crunchers say. Of this, $5.8 billion was set aside to finance development projects,-roads, airports, schools, hospitals, and the Railways line. At $1.9 billion, the line gobbled u...

Dr.  Njoroge: Governor Central Bank: He wrongfooted the "mattress bankers"   Financial crimes in Kenya, which includes; theft of public resources, tax evasion and money faking and fraud faces a killer punch. The Central Bank of Kenya has launched new banknotes and immediately demonetized the 1000 shilling note. The banknote is the highest store of value in Kenya and very popular with those involved in financial crimes including fakers. The current one will cease to be a legal tender in four months’ time, on October 1. This is a killer punch because it tightens the noose for “mattress bankers.” Many are, of course, involved in financial crimes. That is why the money cannot be banked for fear it will be traced to them. The rules of retiring the old note are stringent, geared to expose the owners of the money.   This leaves the mattress bankers with only two options: bring it out and answer questions, and perhaps, face the law or go bust.   The option of fac...