Connect with us

Business

Companies revive their expansion plans with renewed optimism

Published

on

Companies revive their expansion plans with renewed optimism

Companies

Companies revive their expansion plans with renewed optimism


An aerial view of Nairobi, the capital of Kenya. PHOTO | JEFF ANGOTE | NATIONAL MEDIA GROUP

BDgeneric_logo

Resume

  • Corporate managers looking for growth opportunities said they plan to inject more cash into opening new branches, increasing the marketing budget and seeking deals in foreign markets.

More Kenyan companies are confident of reviving expansion plans after the third wave of coronavirus infections subsided amid phased adoption of vaccines, raising hopes for a progressive job recovery.

Results from a closely followed private sector survey conducted in May show that corporate managers are optimistic about growth in the coming year, citing rising demand for goods and services as more economies reopen globally.

Nearly a third of the roughly 400 companies surveyed in Stanbic Bank Kenya’s monthly #ticker: SBIC Purchasing Managers Index (PMI), conducted by British researcher IHS Markit, said they plan to resume investing in business growth over the next year.

This comes at a time when businesses and households have been piling up cash in banks, cautiously awaiting the ideal time for new investments in an economic environment that has been clouded by increased uncertainty as a result of the pandemic.

The latest industry statistics, for example, show that deposits grew Sh445 billion, or 12.07 percent, in the year to March 2021 to Sh4.13 billion, one of the highest annual increases in nearly a decade and a indication of huge projected spending.

Optimism last month among corporate chiefs was the highest in the PMI in three months, returning to levels recorded before the third deadly wave of Covid-19 infections, prompting the government to restrict travel in and out. from Nairobi and four surrounding Kajiado counties. Machakos, Kiambu and Nakuru.

A separate Market Perception Survey, conducted by the Central Bank of Kenya (CBK) every two months prior to the monetary policy committee meeting that signals the direction of interest rates, showed that nearly half of CEOs they were optimistic about the prospects for business growth in the next 12 years. months.

PMI optimism levels at 48 percent were barely unchanged from 49 percent in March.

Business leaders cited increased protection against the contagious virus in progressive vaccination, initially targeting front-line personnel such as healthcare, security, and teaching staff, and the reopening of economies around the world likely to boost exports, for their growing confidence in growth. prospects.

“Companies appear to be increasingly optimistic about the next 12 months as the number of Covid-19 cases continues to decline and vaccines continue to rise. Future prospects for companies improved for the first time in four months, “wrote Kuria Kamau, fixed income and currency strategist at Stanbic Bank, in the May PMI report.

Corporate managers looking for growth opportunities said they plan to inject more cash into opening new branches, increasing the marketing budget and seeking deals in foreign markets, according to the PMI report, which focuses on key economic sectors such as agriculture, manufacturing. , construction and services.

PMI’s monthly report suggested that private-sector hiring in May increased at the fastest pace since January, and employers generally raised workers’ pay for the first time since last October in large part to motivate and retain them.

An upward trend in worker wages amid an expanding workforce in most sectors surveyed, except agriculture, which saw a drop in hiring from month to month and the wholesale and retail sector where jobs were held steady, it will be welcomed by the Kenya Revenue Authority (KRA), which has struggled to meet its Pay As You Earn (PAYE) tax targets.

Payroll taxes in nine months to March 2021 at Sh251.58 billion, the latest Treasury data shows, falls short of the goal by 21.36 percent or Sh24.78 billion and represents a drop of Sh59.04 billion, or 19 percent, of the Sh310.63 billion a year earlier.

However, corporate managers, in feedback to the CBK, cited the imminent threat of the fourth wave of Covid infections initially forecast as of July, the reduction in purchasing power over the likely tax increases in the Finance Bill. 2021 for the fiscal year beginning in July and rising fuel prices. it is likely to pose downside risks to the recovery of private investment.

“The impact of the pandemic on the labor market indicates the devastating effect on the informal economy,” said the executive director of the Federation of Kenya Employers (FKE), Jacqueline Mugo, by email.

“For us to recover, the focus and any support must be on helping companies recover, especially in the productive and job-rich sectors that have been affected by the pandemic, such as manufacturing, transportation, tourism and aviation. This will have a positive impact on employment and income. “

Renewed interest in future growth plans is likely to spur a private-sector borrowing that grew 7.7 percent in the year to March, the slowest since September 2020.

“Many clients are entering deposits but they are not using them for any economic activity. The loans are not that high, so the deposits are with us for much longer, ”KCB CEO Joshua Oigara said last November.

“Most clients are still looking for opportunities and are choosing to put their money in demand deposit accounts. We are in a strong position to take advantage of any recovery in the economy and lend more given the strong deposit base. “

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement
Advertisement

Lifestyle

Moving on to pizza deliveries during MCO Moving on to pizza deliveries during MCO
LifeStyle2 hours ago

Moving on to pizza deliveries during MCO

Crackhouse Comedy Club (Crackhouse) has been home to local comedians, including Dr. Jason Leong, Joanne Kam, Hannah Azlan, and Kavin...

[Review] Going Under is a roguelike game focused on tech startup culture [Review] Going Under is a roguelike game focused on tech startup culture
LifeStyle2 hours ago

[Review] Going Under is a roguelike game focused on tech startup culture

While browsing a recent Steam offering, a game called Going under He caught my attention. Its premise combines my two...

Motion Art Space allows you to create masterpieces through Newton’s law Motion Art Space allows you to create masterpieces through Newton’s law
LifeStyle4 hours ago

Motion Art Space allows you to create masterpieces through Newton’s law

Art improvisation has been all the buzz lately, with various studios popping up all over Singapore. From painting with cats...

Ask Gerda: How do you rate supplements and wellness products? Ask Gerda: How do you rate supplements and wellness products?
LifeStyle18 hours ago

Ask Gerda: How do you rate supplements and wellness products?

Gerda Endemann, our senior director of science and research, has a BA in nutrition from UC Berkeley, a Ph.D. in...

Overcoming Pandemic Fatigue in a Post-Vaccination Society Overcoming Pandemic Fatigue in a Post-Vaccination Society
LifeStyle19 hours ago

Overcoming Pandemic Fatigue in a Post-Vaccination Society

I picked up dinner at a local restaurant in Austin the other day, and just before I walked in, I...

This miso-glazed salmon has healing and anti-inflammatory ingredients This miso-glazed salmon has healing and anti-inflammatory ingredients
LifeStyle19 hours ago

This miso-glazed salmon has healing and anti-inflammatory ingredients

You guys know I’m passionate about my cookbooks, and after reading literally thousands my standards have gotten pretty high for...

How to take care of your voice, according to a professional vocal trainer How to take care of your voice, according to a professional vocal trainer
LifeStyle20 hours ago

How to take care of your voice, according to a professional vocal trainer

This spring, I have been conducting weekly coaching sessions through Zoom with Adam Roberts, a vocal coach who, in addition...

New Telecom Company Gorilla Mobile Lets You Convert Unused Data Into Digital Tokens New Telecom Company Gorilla Mobile Lets You Convert Unused Data Into Digital Tokens
LifeStyle21 hours ago

New Telecom Company Gorilla Mobile Lets You Convert Unused Data Into Digital Tokens

A new telecommunications company has just been launched in Singapore. Call Gorilla Mobile, is aimed at PMET (professionals, managers, executives...

What’s HungryGoWhere’s disappearing sign for the restaurant reservation industry? What’s HungryGoWhere’s disappearing sign for the restaurant reservation industry?
LifeStyle22 hours ago

What’s HungryGoWhere’s disappearing sign for the restaurant reservation industry?

It was sold for S $ 12 million to Singtel in 2012. Fast forward nine years later, this online review...

Robot bartender in LAVO restaurant and bar by Focus Dynamics Robot bartender in LAVO restaurant and bar by Focus Dynamics
LifeStyle1 day ago

Robot bartender in LAVO restaurant and bar by Focus Dynamics

Author’s announcement: Going to the bar for me generally involves having at least one cocktail to drink while chatting with...

Advertisement

Sport

Yankees open late to sweep Blue Jays Yankees open late to sweep Blue Jays
Sports11 mins ago

Yankees open late to sweep Blue Jays

The New York Yankees scored four runs in the seventh to beat the Toronto Blue Jays 8-4 and get the...

Khris Middleton gives the Bucks the stabilizing strength they need in Game 6 win over the Nets Khris Middleton gives the Bucks the stabilizing strength they need in Game 6 win over the Nets
Sports18 mins ago

Khris Middleton gives the Bucks the stabilizing strength they need in Game 6 win over the Nets

Even in the games the Bucks had won against the Nets in their Eastern Conference semifinal series before Game 6,...

Lightning takes control of the series with clinical performance in Game 3 Lightning takes control of the series with clinical performance in Game 3
Sports32 mins ago

Lightning takes control of the series with clinical performance in Game 3

They have scoring champions, All-Stars and a player with goals in eight of their last nine games. And yet the...

Could 2021-22 be the year that Nikola Jokic wins more than MVP? Could 2021-22 be the year that Nikola Jokic wins more than MVP?
Sports40 mins ago

Could 2021-22 be the year that Nikola Jokic wins more than MVP?

Being swept by the Suns was not a disappointment. Roughly speaking, it was unavoidable. One indignity or another was destined...

Lightning takes control of the series with clinical performance in Game 3 Lightning takes control of the series with clinical performance in Game 3
Sports55 mins ago

Islanders in a familiar place, but Lightning presents a tough challenge

When New Yorkers don’t make it difficult for the opposition, they make it difficult for themselves. For the third straight...

Four candidates to replace Rick Carlisle in Dallas Four candidates to replace Rick Carlisle in Dallas
Sports1 hour ago

Four candidates to replace Rick Carlisle in Dallas

If Dallas is looking to serve Luka Doncic with the star guard unhappy with the direction of the organization, Laso...

Bucks lead wire-to-wire to beat Nets, force Game 7 in Eastern semifinal series Bucks lead wire-to-wire to beat Nets, force Game 7 in Eastern semifinal series
Sports1 hour ago

Bucks lead wire-to-wire to beat Nets, force Game 7 in Eastern semifinal series

Giannis Antetokounmpo of the Milwaukee Bucks shoots over Jeff Green of the Brooklyn Nets at the Fiserv Forum on June...

NBA responds to LeBron James complaints about compact offseason NBA responds to LeBron James complaints about compact offseason
Sports1 hour ago

NBA responds to LeBron James complaints about compact offseason

James clearly believes that a tight offseason that didn’t allow players enough time to rest, recuperate and bounce back after...

Gotta see it: Rays star Randy Arozarena throws a bat at pitch for an upfield single Gotta see it: Rays star Randy Arozarena throws a bat at pitch for an upfield single
Sports2 hours ago

Gotta see it: Rays star Randy Arozarena throws a bat at pitch for an upfield single

Randy Arozarena of the Tampa Bay Rays threw his bat on a wayward pitch and reached first base in the...

The ‘All’ Madden Cover Athletes’ Quiz The ‘All’ Madden Cover Athletes’ Quiz
Sports2 hours ago

The ‘All’ Madden Cover Athletes’ Quiz

EA Sports unveiled the latest athletes from the cover of ‘Madden’ on Thursday, with Patrick Mahomes and Tom Brady taking...

Advertisement

Entertainment

Mariah Carey seemingly outshines Eminem as she honors her hit song ‘Obsessed’ on its 12th anniversary! Mariah Carey seemingly outshines Eminem as she honors her hit song ‘Obsessed’ on its 12th anniversary!
Entertainment13 mins ago

Mariah Carey seemingly outshines Eminem as she honors her hit song ‘Obsessed’ on its 12th anniversary!

Mariah Carey was celebrating the 12th anniversary since the release of one of her most successful songs, Obsessed, and she...

Bond girl Tanya Roberts leaves an inheritance worth millions to her husband Lance O’Brien Bond girl Tanya Roberts leaves an inheritance worth millions to her husband Lance O’Brien
Entertainment22 mins ago

Bond girl Tanya Roberts leaves an inheritance worth millions to her husband Lance O’Brien

Actress Tanya Roberts, known for her role as Stacey Sutton in 1985 James bond Movie A sight to kill, has...

Member Reviews Disappointing, Organization Ready to Change – News Block Member Reviews Disappointing, Organization Ready to Change – News Block
Entertainment35 mins ago

Member Reviews Disappointing, Organization Ready to Change – News Block

UPDATED with the latest: After two members of the Hollywood Foreign Press resigned their memberships Thursday, calling it “a toxic...

Luke Wilson says turning 50 has made him realize “Where does the phrase” Midlife Crisis “come from? Luke Wilson says turning 50 has made him realize “Where does the phrase” Midlife Crisis “come from?
Entertainment43 mins ago

Luke Wilson says turning 50 has made him realize “Where does the phrase” Midlife Crisis “come from?

Luke wilson she’s starting to “panic about some things” before her 50th birthday in September and still wondering, “When did...

Kim Kardashian Remembers Paris Hilton Fight, Sex Tape Scandal, And Early Fame At KUWTK Reunion Kim Kardashian Remembers Paris Hilton Fight, Sex Tape Scandal, And Early Fame At KUWTK Reunion
Entertainment57 mins ago

Kim Kardashian Remembers Paris Hilton Fight, Sex Tape Scandal, And Early Fame At KUWTK Reunion

Yes, Kourtney even brought up those “cottage cheese in a big garbage bag” comments. The two-part “Keeping Up with the...

I felt ‘pressured’ to marry Kris Humphries I felt ‘pressured’ to marry Kris Humphries
Entertainment1 hour ago

I felt ‘pressured’ to marry Kris Humphries

Looking back with a smile … ish. Kim kardashian could laugh as he reflected on his marriage to Kris Humphries,...

Gwyneth Paltrow says her daughter Apple has never seen any of her movies and here’s why! Gwyneth Paltrow says her daughter Apple has never seen any of her movies and here’s why!
Entertainment1 hour ago

Gwyneth Paltrow says her daughter Apple has never seen any of her movies and here’s why!

There is no question that Gwyneth Paltrow has a pretty extensive portfolio when it comes to her acting roles and...

Despite divorce, Kim Kardashian says she’s Kanye West’s biggest fan Despite divorce, Kim Kardashian says she’s Kanye West’s biggest fan
Entertainment1 hour ago

Despite divorce, Kim Kardashian says she’s Kanye West’s biggest fan

Kim kardashian said her ex husband Kanye west It’s like family, despite their divorce, adding on a TV show that...

HBO Max Subs Confused, Amused By Mysterious Integration Test Email No.  1 – News Block HBO Max Subs Confused, Amused By Mysterious Integration Test Email No.  1 – News Block
Entertainment2 hours ago

HBO Max Subs Confused, Amused By Mysterious Integration Test Email No. 1 – News Block

Some HBO Max subscribers received a strange email Thursday night with the subject “Integration Test Email # 1”. The body...

Tommy Dorfman on rewriting queer narratives and the smell of good sweat Tommy Dorfman on rewriting queer narratives and the smell of good sweat
Entertainment2 hours ago

Tommy Dorfman on rewriting queer narratives and the smell of good sweat

It’s early on a recent afternoon and Tommy dorfman somehow he has one foot in two worlds. One is Mexico...

Advertisement

Tech

HBO Max emailed a mysterious “Integration Test” to all subscribers HBO Max emailed a mysterious “Integration Test” to all subscribers
Tech21 mins ago

HBO Max emailed a mysterious “Integration Test” to all subscribers

Social media was in an uproar tonight after thousands of HBO Max subscribers received strange emails titled “Integration Test Email...

Facebook announces new tools like conflict alert for administrators to identify ‘contentious or unhealthy conversations’ – Technology News, Firstpost Facebook announces new tools like conflict alert for administrators to identify ‘contentious or unhealthy conversations’ – Technology News, Firstpost
Tech1 hour ago

Facebook announces new tools like conflict alert for administrators to identify ‘contentious or unhealthy conversations’ – Technology News, Firstpost

FP trendJune 18, 2021 10:08:22 AM IST Facebook will launch new tools for administrators that will allow them to monitor...

Safari Technology Preview 126 is here with macOS Monterey features Safari Technology Preview 126 is here with macOS Monterey features
Tech1 hour ago

Safari Technology Preview 126 is here with macOS Monterey features

Apple has officially released Safari Technology Preview 126 and with it some notable updates for those who want to see...

NASA wants your help to name a doll headed to the moon NASA wants your help to name a doll headed to the moon
Tech2 hours ago

NASA wants your help to name a doll headed to the moon

NASA will send a lunar mannequin to Artemis I. POT NASA’s Artemis I mission to send an Orion spacecraft around...

Everything you need to know: tech news, Firstpost Everything you need to know: tech news, Firstpost
Tech2 hours ago

Everything you need to know: tech news, Firstpost

Tech2 news teamJune 18, 2021 9:20:08 AM IST Samsung is set to launch two new tablets, Galaxy Tab S7 FE...

PS5 and Xbox Series restocking is happening at Walmart today (Update: Out of Stock) PS5 and Xbox Series restocking is happening at Walmart today (Update: Out of Stock)
Tech2 hours ago

PS5 and Xbox Series restocking is happening at Walmart today (Update: Out of Stock)

Another day, another sale. Andrew Hoyle / CNET Walmart had both PS5 digital other Xbox Series X consoles today, and...

Satya Nadella, CEO of Microsoft, is now chairman of the board Satya Nadella, CEO of Microsoft, is now chairman of the board
Tech2 hours ago

Satya Nadella, CEO of Microsoft, is now chairman of the board

Because it is important: The Microsoft board of directors has appointed CEO Satya Nadella to the position of chairman of...

We’ve seen iOS 15, but a lot of features are still missing We’ve seen iOS 15, but a lot of features are still missing
Tech2 hours ago

We’ve seen iOS 15, but a lot of features are still missing

We saw tons of Apple software updates at WWDC 2021, but some features we were hoping for were left out....

Eggfree Cake Box suffers data breach exposing credit card numbers Eggfree Cake Box suffers data breach exposing credit card numbers
Tech2 hours ago

Eggfree Cake Box suffers data breach exposing credit card numbers

Eggfree Cake Box has revealed a data breach after threat actors hacked into its website to steal credit card numbers....

Naomi Osaka leaves Wimbledon Naomi Osaka leaves Wimbledon
Tech3 hours ago

Naomi Osaka leaves Wimbledon

Naomi Osaka serves in a tennis match at the French Open on May 30. Julian Finney / Getty Images Tennis...

Advertisement
Advertisement