Browsing: Central Bank of Kenya (CBK)

• Bankers in Kenya are grappling with record 18-year high loan defaults due to high interest rates and a tough business environment.
• Central Bank of Kenya Governor Dr. Kamau Thugge says that despite the rise in bad loans, the banking sector remains stable and resilient
• The overall balance of payments is projected to be a surplus of $554 million in 2024 which should result in a reserves buildup of $1,920 million

The rate of loan defaults in Kenya has hit records last seen over 18 years ago as the fiscal policies meant to cushion the country from high inflation take a toll on the banking industry.

Latest industry data by Central Bank of Kenya shows that the ratio of gross non-performing loans (NPLs) to gross loans stood at 16.7 per cent in August 2024 compared to 16.3 per cent two months earlier.

Essentially this means that out of every Sh100 shillings …

• Growth attributed to increase in Foreign Direct Investment (FDI), which increased by 11.6 per cent from $8.2 billion at the end of 2020, to $9.2 billion.
• The stock of Other Investment (OI) liabilities increased from $4.9 billion in 2020 to $6.2 billion in 2022. Similarly, Portfolio Investment (PI) rose from $253.4 million to $266.4 million in 2022.
• The OI liabilities accounted for 39.2 per cent of total foreign liabilities in 2022, and were mainly in the form of loans, and currency and deposits.

Kenya’s foreign liabilities

Europe and Africa account for the biggest share of Kenya’s foreign liabilities mainly Foreign Direct Investments (FDIs), an official government report shows, as the country continues to retain its East Africa’s economic power status.

This comes on the back of an increase in the stock of Kenya’s foreign liabilities, which went up by 17.9 per cent from $13.4 billion at the end …

• Business confidence slips to lowest since February
• Input prices rise mildly after back-to-back declines
• Steepest drops in activity and new work for seven months

Kenya’s business activity dips amid tax revolt

Kenya’s business activities fell sharply in June amid reports of widespread economic challenges and a negative impact on sales from protests and policy uncertainty, the Standard Bank’s Purchasing Managers’ Index (PMI) for June indicates. New business intakes dropped at the fastest rate since November last year, leading to a drop in business confidence and weaker job creation.

Although Kenyan firms also saw a renewed increase in their input costs in June, the rate of inflation was mild and had little impact on selling charges.

The survey by Stanbic Bank Kenya, compiled by S&P Global was conducted between June12 and June 26, with headline figure derived from the survey reading at 47.2 in June. Readings above 50.0 signal an improvement …

• • (CBK) retained its base lending rate at a high of 13 per cent for the second time.
  • This is the highest rate in 12 years, as the apex bank continues implementing monetary policies to manage stubborn inflation.
  • According to CBK data, the country’s borrowers had defaulted on about $4.8 billion as of April, the highest in 18 years, due to the tough credit market.

  Central Bank of Kenya (CBK) retains high interest rates

  Central Bank of Kenya (CBK) retained its base lending rate at a high of 13 per cent for the second time driving the borrowing costs in Kenya to remain high for at least the next two months.This is the highest rate in 12 years, as the apex bank continues to implement monetary policies intended to manage the stubborn inflation, which slightly increased to 5.1 per cent last month from five per cent in April.

• The base-lending

• Remittance inflows for March grew to $407.8 million, up from $385.9 million in February, with the US maintaining its lead as the top source for Kenya’s remittances.
• This was also higher by 14.2 percent compared to the $357.0 million sent in the same month last year (March 2023), according to official data by the Central Bank of Kenya (CBK).
• The cumulative inflows for the 12 months to March 2024 totaled $4.4 billion compared to USD 4 billion in a similar period in 2023, an increase of 10 percent.

Kenyans living and working abroad sent home more money in March, boosting the country’s forex reserves and supporting families and friends.

Remittance inflows for March grew to $407.8 million, up from $385.9 million in February, with the US maintaining its lead as the top source for Kenya’s remittances.

This was also higher by 14.2 per cent compared to the $357.0 million sent …

• The Kenyan lender with subsidiaries in Tanzania, Rwanda, and Uganda saw customer deposits close at $4.4 billion, 15.3 per cent, year-on-year.
• Assets grew to $5.5 billion, 18.6 per cent up year-on-year.
• During the year that ended December 31, 2023, NCBA’s loan book grew to $2.5 billion, up from $2.1 billion the previous year, signalling continued demand for credit.

Nairobi Security Exchange-listed bank–NCBA Group PLC has posted a profit after tax of $162.3 million in its full-year 2023, driven by positive operating income and a decline in loan impairment charges.

This was a 56 per cent increase compared to $104.2 million reported by the regional lender during a similar period …

• Remittance inflows amounted to $385.9 million in February, compared to $309.2 million in February 2023, an increase of 24.8 per cent.
• The cumulative inflows for the 12 months to February 2024 totaled $4.33 billion compared to $4.03 billion in a similar period in 2023, an increase of 7.5 per cent.
• The US remained the largest source of remittances to Kenya, accounting for 54 per cent in February 2024.

Remittances to Kenya continued on a growth trajectory in February, latest Central Bank of Kenya (CBK) data shows, as easing inflation in the United States saw the country maintain its position as the leading source of inflows.

This comes amid a positive projection for the year where World Bank has forecast a 2.5 per cent increase on inflows to Sub-Saharan Africa, with Nigeria, Ghana and Kenya as leading recipients in the continent.

Remittance inflows in Kenya amounted to $385.9 million in February, …

• Kenya’s private sector activity and new orders rises for the first time in six months.
• Selling price inflation hits long-run average as cost burdens ease.
• However, PMI shows lowest confidence towards future output in the survey’s history.

Kenya’s business conditions improved in February, expanding private sector activity due to a further softening of inflationary pressures supported a fresh increase in new order volumes.

Stanbic Bank Kenya Purchasing Managers Index (PMI) for February registered at 51.3 per cent as lower fuel prices helped to cool input cost inflation to a 26-month low, supporting the softest increase in output prices for one-and-a-half years.

Improving business conditions are said to have led Kenyan companies to expand staffing levels at a faster rate albeit by largely hiring casuals pointing to a cautionary stance towards hiring permanently.

Nevertheless, confidence regarding future activity fell to a survey low, suggesting a broad degree of uncertainty that activity …

• Official data shows that diaspora remittances to Kenya increased to $412.4 million in January 2024, compared to $372.6 million in December 2023.
• This represents an 18% jump compared to similar month in 2022 as well as 10.7% month-on-month increase in inflows.
• The cumulative inflows for the 12 months to January 2024 totalled $4.3 billion compared to $4 billion in the same period in 2023, an increase of 5.3 per cent.

Kenyans in the diaspora sent home more money in January compared to December, as the strong start of the year signals easing inflationary pressures, mainly in key sourcejock strap brock bowers jersey jordan max aura 4 nike air jordan 1 elevate low oregon football jerseys black friday wig sale best human hair wigs for black females latex hood custom stitched nfl jersey sit top kayak nike air max 90 futura jock strap jock strap air max 270 women alpinestars …

• The Kenyan shilling has made a strong turnaround against the US dollar this week,
• Last Tuesday, Kenya successfully raised $1.5 billion from its Eurobonds buyback offer initiated on February 7, reducing the chance of defaulting payment on its $2-billion-dollar debt due in June.
• East Africa’s most robust economy plans to use the funds to repay its debut Eurobond issued in 2014.

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