The State of Capital Flows in Kenya
KIPPRA held a successful national workshop on capital flows in Kenya on 4th September 2017 in Nairobi. The workshop, which was in collaboration with the African Economic Research Consortium (AERC), involved a brainstorming session on policy issues around capital flows in Kenya, both domestically and internationally as well as the dissemination and discussion of two conference papers.
Among the keynote speakers included AERC Executive Director Prof. Lemma Senbet, former Central Bank of Kenya Governor Prof. Njuguna Ndung’u, Kenya Investment Authority CEO Dr Moses Ikiara, Capital Markets Authority Derivatives Manager Mr Matthew Mukisu and Mr Isaac Njuguna from the Zimele Asset Management Company Limited. Other organizations represented include World Bank-Kenya, University of Nairobi, Kenya Revenue Authority (KRA), Institute of Economic Affairs, Sacco Societies Regulatory Authority (SASRA) and the National Treasury. KIPPRA researcher, Hannah Wang’ombe, was the workshop’s moderator.
In her opening remarks, KIPPRA Executive Director Dr Rose Ngugi thanked participants for honouring the invitation to the important forum, noting that capital flows play a key role in the achievement of national development goals.
Prof. Senbet highlighted the key role EARC has played in building the capacity of researchers and policy analysts in Africa. In relation to the topic of discussion, Prof. Senbet pointed out that tax evasion and illicit flows continue to affect domestic revenues and capital consolidation in Africa.
Prof. Ndung’u addressed various issues relating to monetary policy and management of capital flows while Dr Ikiara discussed Foreign Direct Investment (FDI) flows to Kenya. Mr Mukisu delved into regulatory issues governing capital flows in Kenya and Mr Njuguna shed some light on foreign investors and their appetite for various products.
The second session of the programme involved presentation of papers; the first on on fiscal policy and capital flight in Kenya by Dr Joseph Muchai of Kenyatta University and the second on the uncertainty in macroeconomic policies and their implications on capital flight and revenue, which was presented by KIPPRA Policy Analyst Mr Benson Kiriga.
This was followed by presentation of comments by discussants: Dr Mbui Wagacha from the Executive Office of the President, KIPPRA Policy Analyst Dr Bernadette Wanjala and Mr Joseph Sirengo from KRA.
Apart from presentations, the workshop also involved a lot contributions, comments, questions and seeking clarifications by participants.
Dr Ngugi concluded with a summary of the key issues raised and a vote of thanks.