May I belatedly bring you my New Year greetings.

On the Global scene, 2012 was the year when shocking economic and
business news seemed to lose its power to shock.  Kenya withstood
another difficult year in 2012 as policy tightening and weaker global
demands slowed economic activity.  With decisive fiscal and monetary
policies, the government managed to restore confidence in Kenya.  The
year 2012 in Kenya was almost a mirror image of 2011.  In 2011 the
economy started out strongly, but by mid-year, high fuel and food
prices led to a rapid rise in inflation, a weekend exchange rate and
ultimately a radical increase in interest rates towards the end of the
year.

The implication of these economic and business trend on GOA ministries
was that we had to not only make tough stewardship decisions in 2012
but also daily prayed for God’s Grace to complete the year.  With
decisive ministry policies under the governance of an extremely well
educated and experienced GOA board of directors and a dedicated team
of staff at GOA head office in Nairobi we managed to restore
confidence in all stakeholders and continued to change lives and
impact communities.

As we head into 2013, Kenya is expected to stimulate growth by
loosening monetary policy.  The Central bank of Kenya has lowered the
Central Bank rate (CBR) over the last several months to encourage
investment and economic growth.  As a result, the second have begun
the year by seeing economic activity increase without inflationary
pressure.  The Central Bank of Kenya is expected to continue these
policies in the first quarter of 2013 with investors expected to delay
major projects while waiting for the outcome of the elections.

GOA’s theme for 2013 “To proclaim the year of the Lord’s
favour”-Jubilee Luke 4:19.  In the last three weeks I have been
blessed with opportunities training senior ministry leaders in
Ethiopia, Kenya and Uganda with the eight core values of ILI/HM.  I
can boldly proclaim that GOA is out to experience great favour from
God in 2013.  This is the year that Kenya will celebrate her Golden
Jubilee-50 yrs since independence.  It is also the year that GOA’s
Executive Director is celebrating his Golden Jubilee-50th birthday.
I’m double excited.  To be a Kenyan who is celebrating Jubilee
together with his nation.

The     World Bank in their December 2012 Kenya Economic update dubbed
“Kenya at work-Energizing the economy and creating jobs” highlighted:
Kenya withstood another difficult year in 2012 as policy tightening
and weaker global demand slowed economic activity.  With decisive
fiscal and monetary policies, the government managed to restore
confidence in Kenya’s medium term prospects.  2013 promises to be a
better year.  Yet hard realities remain –Kenya’s growth rate is still
below its potential and its peers, external balances remain which
threaten its future growth, and the pace of economic growth is not
generating enough modern sector wage Jobs.  With the passage of the
new constitution in 2010 and its implementation, stronger institutions
are emerging, putting Kenya on a sound footing ready to take off.  In
the very short term, what remains to be done is for Kenya to deliver a
credible and peaceful election in March 2013, and thereafter a smooth
transfer of power.  In the medium term, Kenya will need to start
building a stronger foundation for growth, and undertake structural
reforms to correct the external imbalances.  To generate more jobs for
the burgeoning educated population, Kenya will also need to reduce the
transaction cost for firms, by reducing job-smothering corruption and
the cost of doing business (particularly in transport and energy).

In the first half, we expect the Government to keep its focus on
controlled liquidity as it seeks to keep the cost of living at
manageable levels.  We expect less easing of the monetary policy with
politics dimming the outlook with political pressure expected to
increase as the country gears up for the general elections.  We expect
the outcome of the elections to have a major impact on the economy.
Following the elections, we expect the Central Bank of Kenya to head
back to the low interest rate stance as it seeks to propel
post-election economic growth in the coming years in line with the
vision 2030 objectives.  With the Central Bank of Kenya expected to
ease monetary policy, we expect the stock market to stay on a recovery
path.  The bond market is expected to see improved activity with
concentration expected to shift to the long end.

This is the time to invest in Kenya.  GOA is looking for investors who
are interested in not only reaping good business returns but also
kingdom value through change lives in our four vision  areas of Church
Growth, compassion, conflict Resolution and leadership Development.
The focus of the GOA board of directors is to move GOA towards a
sustainable future.  With this goal in mind, GOA’s next 5 year
strategic plan has business ideas on investments that may initially
require high capital investment but eventually lead GOA towards
sustainability.  We invite you to partner with GOA in 2013.

With you in this year of our Lord’s favour

Bishop David Thagana