Author: The Exchange

Sixth straight rate cut comes amid easing inflation, rising non-performing loans, and weak private sector credit growth. Kenya’s private sector credit grew by only 2% in May 2025, up from 0.4% in April and a contraction of -2.9% in January. Banking industry suffering loan defaults in trade, personal and household loans, tourism, and construction. The Central Bank of Kenya (CBK) on Tuesday lowered its benchmark lending rate to 9.75 per cent, down from 10 per cent, in a bid to boost private sector borrowing and stimulate economic activity in an environment marked by weak growth and falling inflation. This latest…

Kenya is evolving into a trade, industrial and innovation hub to strategically tap into the opportunities presented by $3.4 trillion AfCFTA market. The country is emerging as a major force in digitalisation and innovation, both within the region and across Africa. AfCFTA encourages countries to tap into the continental market by scaling up productive capacity and add value to products. Kenya is working towards fast-tracking the rollout of the African Continental Free Trade Area (AfCFTA) to unlock opportunities for businesses in the country across the continent. According to Kenya’s Cabinet Secretary, Ministry of Investments, Trade and Industry, Lee Kinyanjui, the…

Fitch Ratings ‘negative outlook’ on Afreximbank brings up a debate on how multilateral development finance institutions operating under treaty law should be evaluated. Afreximbank’s position is that risk assessments must take into account not just financial data but also the institutional frameworks and legal covenants that define its operations. The bank urges a more nuanced understanding of institutions like itself—whose mandates, legal structures, and risk profiles are unlike those of commercial entities. The African Export-Import Bank (Afreximbank) has come out guns blazing, defending its financial and operational integrity following the June 4th undertaking by global credit ratings agency Fitch to…

The African Peer Review Mechanism (APRM) defends Pan-African Lender, Afreximbank, challenges western risk metrics. On 4 June 2025, Fitch Ratings revised the bank’s long-term foreign currency issuer default rating downward from ‘BBB’ to ‘BBB-’ and assigned a negative outlook. Fitch claims lender has 7.1% non-performing loan ratio while as lender places its NPL at a lower 2.44%. The African Peer Review Mechanism (APRM) has strongly criticized Fitch Ratings over its recent decision to downgrade the African Export-Import Bank (Afreximbank), describing the move as flawed and based on a fundamental misunderstanding of intra-African financial architecture. On 4 June 2025, Fitch Ratings…

AmCham Forum in Nairobi spotlights film, music, and sports as key growth sectors. Kenya’s youth-driven demand for music content creates massive synergy for cross-continental collaboration. AmCham Kenya announces formation of a dedicated task force to drive forward US-Kenya partnerships in the creative economy. The inaugural U.S.-Kenya Creative Economy Forum concluded Friday with a bold declaration: Kenya is ready to take center stage as a global hub for creative investment, and American companies are invited to play lead roles in its success story. Organized by the US Embassy in Kenya and the American Chamber of Commerce in Kenya (AmCham Kenya), the…

AFC’s SAI Report maps out continent’s financial muscle—and the urgency to deploy it in energy, rail, and industrial transformation. Installed power capacity per capita stagnated in Africa vs. doubling in India since 2008. Africa’s railway expansion is gaining speed with 7,000km of new track investments poised to double growth in the next decade. Africa’s rising supply of strategic resources such as iron ore requires a unified continental approach to integrate production, processing and demand centres for steel. Africa is sitting on a financial goldmine of over $4 trillion in investable capital, yet the continent continues to grapple with underdeveloped infrastructure…

Ministers of Mining in Africa are rallying behind progressive policy shifts to empower communities, formalize small-scale mining, and boost local value addition across the continent. They note that mining is no longer just about digging minerals out of the ground; it’s about ensuring those minerals translate into schools, roads, clean water, and decent jobs. Policymakers note that lasting policy change depends on strengthening institutions, building trust with communities, and ensuring access to capital and training. Deep inside Africa’s abundant mineral wealth lies a bitter reality: while the continent is home to some of the world’s richest deposits of gold, cobalt,…

While Donald Trump is retreating from the global stage, Bill Gates is doubling down on his investment in Africa’s future. Gates announced he would give away all his wealth — about $200Bn by 2045 — with Africa as the primary beneficiary. Trump’s “America First” doctrine has seen authorities in Washington slash funding to global health initiatives, including vital HIV/AIDS programs in Africa. Two American billionaires — both synonymous with influence, power, and global recognition — now find themselves on divergent paths as far as channeling aid to Africa is concerned. While one is retreating from the global stage, the other…

Since its launch in 2019, PalmPay has evolved into a financial super app that simplifies money transfer and expands access to digital financial services. By 2025, the platform manages over 35 million registered users, who conduct up to 15 million transactions daily. These users rely on PalmPay for instant cash transfers, credit, savings, insurance, and business tools tailored to power micro, small, and medium enterprises. PalmPay, a rapidly scaling neobank and fintech platform targeting emerging markets, has been crowned Africa’s fastest-growing financial services firm by the Financial Times in its 2025 ranking of Africa’s Fastest-Growing Companies. Compiled in partnership with…

Mauritania’s Sidi Ould Tah will take over from Nigeria’s Dr. Akinwumi Adesina on September 1, 2025, stepping into a position laden with immense responsibility—and expectation. With traditional donor fatigue setting in—highlighted by U.S. funding cuts about $555M—Tah faces a tighter aid environment. Tah strategy seeks to deepen Africa’s ties with oil-rich Gulf countries in infrastructure financing, while tapping into the continent’s capital markets. When Mauritania’s seasoned economist Sidi Ould Tah emerged victorious in the tightly contested race for the presidency of the African Development Bank (AfDB), the continent, already edgy due to dwindling aid cuts, and Trump tariffs edged closer…