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Why GDP is one percent off the Target-CS Treasury

Peter Kenda

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Henry Rotich-CS Treasury speaking to press at a function in Kerio Valley Kenya. Photo Peter Kipkoech

The Kenyan Gross Domestic Product (GDP) is one percent away from the bull, says Treasury Cabinet secretary Henry Rotich.

The Treasury boss is now attributing the loss to the high expenditure in the electioneering which strained businesses in the country.

The ministry targeted six percent growth in the economy but ended up growing by five percent. This is as per the latest figures released by the treasury.

Speaking to Africa Classifieds, Rotich condemned decreased revenue collection amid high demands for the resources to fund the presidential repeat polls.

“This prolonged electioneering has already reduced the growth of the Kenya’s Gross Domestic Product by one percent,” CS Rotich confirmed.

The Cabinet Secretary added that the shortage has in a way made the implementation of the 2017-2018 fiscal year’s budget difficult.

Rotich expressed the strain by the ministry to come up with the supplementary budget which has been already concluded.

The Ministry of Finance, the CS says that it will continue with the expurgated expenditure till the emerging challenges are stabilized.

“As you know I have just concluded the budget for the supplementary budget, we have tightened our belts, we have cut the expenditures drastically to deal with the emerging challenges and we will continue with that until the situation fully restored,” CS Rotich said.

Peter Kenda

Peter Kipkoech Kenda is an all-around professional in Kenya with a
long-term focus on journalism. He thinks in terms of results and
objectives; all with an insatiable hunger for excellence. Peter is a
proactive professional who always looks for positive ways to inspire and
engage with his superiors, sources, and audience.

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Africa

Technology smile as Mobile payment for goods shoots by 71%

Erick Mongare

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Since the introduction of money transfer and payments in Kenya via mobile phones more than half the money sent through mobile phones between April and June in the years 2017 was purposely for paying for goods and services.

According to the recent fresh official data released by the Communications Authority of Kenya it indicates  that KSh692.1 billion representing  -57.68 per cent of the Sh1.2 trillion worth of 480.5 million mobile money transfers- were through commerce platforms.

The authority added that the commerce industry is being boosted businesswise as there are over 40 million subscribers currently.

The increase of money transfer for purchasing goods stands at   71.27 % that’s if from Sh404.1 billion transacted during the same period in 2016.

Kenya’s leading telecommunications company Safaricom enjoys the bigger share as its platform M-pesa was responsible for the 66.725 of the total transactions valued at Sh461.82 billion.

The newly emerging competitor to safaricom   Equitel also contributed to the cashless economy as its accounted for 32.33 per cent of the total mobile commerce cash valued at Sh228.05 billion

Struggling Airtel Kenya was overtaken by Equitel as it only accounted for only 0.33 % of transactions valued at Sh2.28 billion.

The communication authority report however predicted a cashless payment in the near future as technology keeps on invading businesses.

 

 

Erick Mongare

Erick is a Kenyan based communications professional who graduated from Jomo Kenyatta University of Agriculture and Technology with lots of experience in feature writing, news reporting and who has a nose for news.

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