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🌪Devaluation 🥶

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Sanduk
July 16, 2023

The Jabena
🌍 Igniting Conversations on Market, Economy, and Tech

Welcome to the first edition of Jambo’s Business Briefing. Get ready to stay informed and ahead of the game with our curated updates on market stock prices, key financial news, and insightful articles from this week. Let's dive right in! 💼

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📈 Market Update: Keep an eye on these market trends as we move into the next trading week.

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💡Did you know that the value of your money can change over time, and this can affect your financial well-being. We want to help you understand this concept called currency devaluation and show you how to safeguard your savings. 💰

📍In January 2023, 1 US dollar was equivalent to 124 Kenya Shillings. But as of July 2023, that same 1 US dollar is now equivalent to 141 Kenya Shillings. This means that the value of the Kenya Shilling has decreased compared to the US dollar, and it has become more expensive to buy dollars. It's essential to be aware of these changes because they can affect your purchasing power and financial plans. 😔

By Homer Simpson Dollar GIF

🗞️ Financial News Highlights:

KES/USD

  • Tough days ahead for households as shilling hits 141 against US dollar: Kenyan households are staring at an even higher cost of living this month as the shilling continues on a free fall against the dollar, hitting imports and local companies operations. Analysts predicting it could hit 145 by end of August. (The Star, July 12, 2023)

  • Rich Kenyans sit on Sh922bn in dollars as the shilling weakens. The Business Daily Africa reports that wealthy Kenyans are sitting on a record Sh922 billion in dollars as they seek to preserve the value of their bank deposits amid a depreciating shilling. [Business Daily Africa]

Fuel

  • Matatus increased fares by 30 percent. Matatu operators in Nairobi have increased fares by 30 percent. The increase is due to the rising cost of fuel and other operating costs. (Business Daily, July 4, 2023)

  • Kenya strikes cheaper oil deals with Gulf firms. The government has reached an agreement with Gulf oil firms to import crude oil at a lower price, which is expected to save the country billions of shillings. (Source: Business Daily Africa, July 12, 2023)

  • Kenya's fuel taxes beat South Africa, US on higher VAT. Kenya has the highest fuel taxes in Africa, beating South Africa and the United States. This is due to the high VAT rate on fuel in Kenya. (The East African, July 11, 2023)

Other

  • Safaricom, KCB shares among 1.2bn unclaimed. More than 1.2 billion shares worth billions of shillings have been handed over to the Unclaimed Financial Assets Authority (UFAA). Safaricom tops the list of abandoned shares, with 196.4 million shares worth Sh3.5 billion. Other notable counters with unclaimed shares include Absa, KCB and Britam.(Source: Business Daily Africa, July 10, 2023)

  • Kenya's economy grows at 5.3% in Q1 2023. The country's economy grew at a slower pace in the first quarter of 2023, but still beat expectations. The growth was largely driven by the agriculture, manufacturing, and construction sectors. (Kenyan Wallstreet, July 6, 2023)

Financial Literacy: Understanding Key Financial Concepts

📚 Article of the Week: “Finance 101: A Beginner’s Guide to Understanding Key Financial Concepts” In this article, we provide a beginner's guide to financial management, offering practical insights and essential concepts for individuals looking to improve their financial knowledge.

We hope you find this edition of Sanduk's Business Briefing insightful and valuable. Stay tuned for more updates, market analysis, and expert insights delivered right to your inbox. Remember, knowledge is power, and we're here to empower you in your business and financial journey. 📊