Can developing economies achieve growth that benefits everyone and protects the planet? This report explores how low- and middle-income countries (LMICs) can achieve inclusive and sustainable economic transformation (ISET) - where economic growth benefits all of society and protects our planet....

The paper examines the effect of macroeconomic imbalances on bank lending with emphasis on the exchange rate movement, inflation differential and fiscal deficit. In the study, bank lending is modelled by gross loans and advances, assets quality and risk appetite. The panel GMM model results show...

Micro, Small and Medium-sized Enterprises (MSMEs) are crucial drivers of economic growth. In Kenya, MSMEs represent about 98 percent of all businesses and contribute over 30 percent to the GDP. Despite their essential role in the economy, these enterprises face substantial challenges in...

This study investigates the demand for government securities by Kenyan banks using annual data from 2005 to 2022. Employing a fixed-effects panel regression model, the research examines the factors influencing banks' sovereign debt holdings and their implications for systemic risk. Key findings...

ypical debt sustainability metrics characterize Kenya's sovereign debt as "unsustainable" since around 2019. Further, the data show that, over time, commercial banks' private sector lending has declined while lending to the government has grown. Given these observations, this study examines...

This paper seeks to establish whether the monetary policy stance of Central bank of Kenya (CBK) at the turn of financial markets is pre-emptive or a cleanup. The feedback loop between monetary policy reaction and the markets' response presupposes a sequencing that runs from the former to the...

China has become a major global player in energy finance, infrastructure development and clean technology exports. This report explores the changing nature of China's engagement in energy transitions across Africa, with a focus on three key cases: Kenya, Mozambique and South Africa. Between 2010...

Governments across the Global South have begun introducing biometric IDs (eIDs) in an attempt to improve citizen-state legibility. While such initiatives can improve government efficiency, they also raise important questions about citizen privacy, especially for groups with a history of mistrust...

This paper seeks to determine the interaction mechanism between the domestic imbalance and the external imbalance in Kenya and why it matters for banks. Whenever an economy has is on a path of soaring fiscal and current account deficits like Kenya has been over the past decade, concerns on the...

Micro, Small and Medium-sized Enterprises (MSMEs) are crucial drivers of economic growth. In Kenya, MSMEs represent about 98 percent of all businesses and contribute over 30 percent to the GDP. Despite their essential role in the economy, these enterprises face substantial challenges in...

The paper examines the effect of macroeconomic imbalances on bank lending with emphasis on the exchange rate movement, inflation differential and fiscal deficit. In the study, bank lending is modelled by gross loans and advances, assets quality and risk appetite. The panel GMM model results show...

This study investigates the demand for government securities by Kenyan banks using annual data from 2005 to 2022. Employing a fixed-effects panel regression model, the research examines the factors influencing banks' sovereign debt holdings and their implications for systemic risk. Key findings...

This paper seeks to establish whether the monetary policy stance of Central bank of Kenya (CBK) at the turn of financial markets is pre-emptive or a cleanup. The feedback loop between monetary policy reaction and the markets' response presupposes a sequencing that runs from the former to the...

ypical debt sustainability metrics characterize Kenya's sovereign debt as "unsustainable" since around 2019. Further, the data show that, over time, commercial banks' private sector lending has declined while lending to the government has grown. Given these observations, this study examines...

The study investigates the effects of macro imbalances on the banking sector performance in Kenya from the financial intermediation cost perspective for 2020q4 - 2024q1 period. Employing dynamic panel GMM model, the study finds that inflation pressures above the upper bound target, external debt...

The paper examines the nexus between capital, competition and stability in the Kenya banking sector. This is achieved by applying a panel data analysis model on annual bank level data for the period 2001 to 2022. The paper estimated H-Statistics and Bank Stability Index to measure evolution of...

Kenya is at a pivotal moment in advancing prosperity for adolescent girls. With a solid educational base already established, the country has a unique chance to broaden its efforts toward comprehensive empowerment by addressing both economic and social dimensions. Prioritizing school-to-work...

The global economic context improved modestly in 2024, supported by easing inflation and a rebound in global trade. Kenya's economy has slowed despite several improving macroeconomic indicators. The external sector showed improvement, driven by recovering exports and rising financial inflows. A...

Accessible and affordable energy services are a prerequisite for socioeconomic growth and poverty reduction. Yet it is estimated that 600 million people in sub-Saharan Africa will not have access to electricity in 2030. Recent research suggests that universal access to electricity will be...

Agroecology is gaining traction as a possible strategy for enhancing the sustainability and resilience of food systems, prompting increased support from some governments, donors, development organizations and civil society. However, the scope, design and impact of agroecology-related projects in...

This paper analyses the legal frameworks in Kenya and Uganda, and the Financial Action Task Force (FATF) guidelines to ascertain if they are effective in minimising money laundering activities and keeping the countries off of FATF's grey list. The study implements the Two-Pillar methodology that...

This study investigates the economic welfare of refugees and host communities in Kenya, utilizing bi-monthly panel data collected from May 2020 to May 2022. The analysis employs a fixed effect model, which effectively captures the nuances of welfare differences between urban and camp refugees....

This paper investigates the role that access to livelihood assets plays in reducing vulnerability to lower levels of well-being, especially for camp-based refugees. We develop the multidimensional vulnerability index using the 2019 Kakuma socioeconomic survey to provide a comprehensive and...

Considering refugees' employment challenges in their host countries, they often need to create jobs by starting ventures and embracing self-employment. However, this requires financing. This study seeks to assess the roles of formal and informal financing in self-employment while also looking at...

The evolving labor environment underscores the critical role of cognitive and non-cognitive (soft) skills in fostering workforce adaptability and enhancing labor market outcomes. This study investigates the combined influence of these skills on the probability of employment, focusing on the...

Peanut is Kenya's second most important legume after beans, primarily grown in the Nyanza and Western regions. This study maps the peanut value chain in Kenya, aiming to identify key actors, quantify costs and value addition, and outline constraints and opportunities, with a view to upgrading...

The study examined the effect of fiscal decentralization on healthcare availability outcomes from 23 Kenyan counties during the 2013-2022 devolution period. The results from different robust non-endogeneity econometric methods indicate a significant deleterious effect of fiscal decentralization...

Agricultural production in Kenya is predominantly rain-fed and highly vulnerable to climate variability and change. Climate Smart Agriculture (CSA) is thus being promoted with the aim of increasing agricultural productivity, adapting to the changing climate, and reducing greenhouse gas...

This study investigates the relationship between agricultural commercialization and food security among smallholder farmers in Kenya, integrating the Market Structure, Conduct, and Performance (SCP) paradigm with peasant economic theory. Using mixed methods (household survey, participant...

The analysis of household health financing vulnerability and its impact on health service utilization during the COVID-19 pandemic remains inadequately explored in Kenya. This study was designed to examine the impact of health financing vulnerability on health services utilization during the...

Fish consumers are often challenged by tradeoffs between nutritional benefits and contaminant risks, which increase due to environmental pollution. Health campaigns and labeling initiatives can guide decision-making by providing information both on contaminant risk and nutritional value of a...

Over the past two decades, mobile money has evolved into a broader suite of Digital Financial Solutions (DFS) that have transformed the financial landscape of SubSaharan Africa. In Kenya, over 86 per cent of adults use mobile money for everyday transactions (FinAccess Household Survey 2024),...

This article analyses the capacity of informal worker associations to provide social protection during times of multifaceted crises in Kenya and Tanzania. Focusing on informal workers in the construction, micro-trade and passenger transport sectors before and during the COVID-19 pandemic, we...

This paper examines the relationship between financial inclusion and energy access, leveraging micro-level survey data from Kenya (2016-2018) and employing propensity score matching to establish causal linkages. The analysis reveals that financial inclusion significantly enhances energy access,...

The integration or resettlement efforts aimed at self-reliance of refugees are requisite for their adaptation to social and economic shocks and consequently to their human development and contribution to economic growth. This study analyses the drivers of financial inclusion and social...

A bi-directional relationship between poverty and mental health may create a vicious cycle, wherein economic hardship and psychological distress reinforce each other. We examine the short-term dynamics between income fluctuations and mental well-being using 17 months of weekly financial diaries...

Promoting household-level adaptation measures is an important part of climate change adaptation policies to reduce vulnerability to droughts for (agro-)pastoral communities in sub-Saharan Africa. To develop effective supportive policies, it is important to get a better understanding of the needs...