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Showing posts from September, 2021

How Do Brands Create Value ?

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  Brand value is a cumulative result of sales volume, equity, audience size, and the brandʼs market potential. What are the Kenyan top brands ?, I bet Equity  Bank Kenya and Safaricom Plc are. But unlike other assets we know like real estate, there is no active market in brands that would provide comparable values. The main issue with brand valuations is their arbitrary measurement and few agreed-upon systems and processes for evaluating brand assets in the Kenyan context this is very much arbitrary. Brands are a business's most valu e d asset, yet there is no universally accepted method of measuring that value. The only time you can be sure of the value of your brand is just after you have sold it.  At the same time, well-managed brands have extraordinary economic value. Founders die. Management changes. Factories burn down. Technology becomes obsolete. The brand is the only sound foundation on which business leaders can build enduring, profitable growth. Brands create v...

Kenya Public Debt

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Kenya’s debt has increased from 49 % of GDP in 2013 to 68% of GDP in 2020. Kenya’s debt dynamics need to be understood in the context of the fiscal deficits The composition of external and domestic debt has changed and increased pressure on debt service: The share of commercial debt has increased from 22% to 36 % of total debt. The rising debt & changing composition has seen a rise in debt service as a share of revenue from 16% in 2013 to a high of 32%. The current scenario can trigger a vicious cycle of debt dynamics. Debt service crowds out social and development expenditure and can have serious social consequences. Also, when debt service is high there are fewer resources for other types of spending which are vital. Recommendations on mitigation of the debt 1. The government should enhance the revenue forecasting capability & align expenditures to available resources to reduce fiscal deficits 2. The government should l engthen the maturity profiles & restructure borrowin...