Browsing: Central Bank of Kenya (CBK)

Kenya’s economic recovery

Kenya’s inflation has marginally dropped for the third straight month providing relief to households that have been battling runaway inflation since April last year.

The overall year-on-year inflation rate as measured by the Consumer Price Index (CPI) was 9.0 per cent in January 2023, down from 9.1 per cent in December and 9.5 per cent in November last year.

It hit a five-year high of 9.6 per cent in October 2022, data by the Kenya National Bureau of Statistics (KNBS) shows. The lower inflation (measure of the cost of living) in January however remains above the preferred ceiling of 7.5 per cent.

According to the government statistician, the high inflation was due to increase in prices of commodities under transport (13.1%), food and non-alcoholic beverages (12.8%) and housing, water, electricity, gas and other fuels (7.3%) between January 2022 and January 2023.

These three divisions account for over 57 per …

Kenya's president Ruto

Kenya’s President William Ruto has asked his Cabinet Secretaries to act fast to deliver on his administration’s development programmes, “with speed and efficiency”.

“We made important promises to the people of Kenya, especially those at the bottom of the economic pyramid. And we must deliver,” the president said.

According to Ruto, there are no excuses not to deliver his mandate adding that the government must work as a team and drive the interests of the people.

He was speaking at a cabinet retreat on the implementation of the government’s development priorities for 2023.

In the run up to the August 2022 General Elections, Ruto gave a number of promises under his bottoms-up economic plan.He unveiled a five-point manifesto dubbed ‘The Plan’, which he said would address Kenya’s economic challenges.

Economic recovery in a post-Covid era was one of his main objectives. Ruto also pledged to invest at least Sh250 billion …

IMF approves US$447.39 million loan to Kenya
  • The International Monetary Fund (IMF) Executive Board has authorised a Sh55.1 billion (US$447.39 million) loan to Kenya
  • Kenya has received a total of around $US1.655 billion (Sh203.84 billion) in payments under the EFF/ECF accords
  • IMF stated that Kenya’s economy is solid and expects it to expand by 5.3% 

The International Monetary Fund (IMF) Executive Board has authorised a Sh55.1 billion (US$447.39 million) loan to Kenya for budgetary support.

This follows the fourth evaluation of the 38-month, $US2.34 billion (Sh288 billion) Extended Credit Facility (ECF) and Extended Fund Facility (EFF) agreements with Kenya.

Kenya has now received $US1.655 billion (Sh203.84 billion) in payments under the EFF/ECF accords.

The facility, approved in April 2021, was aimed at helping Kenya manage its debt risks, respond to the Covid-19 pandemic and other global shocks, improve governance, and implement more extensive economic reforms.

IMF confidence in Kenya’s economy

Despite a challenging global economy, the IMF

Kenyan State to gets Sh44bn dividend windfall from investments www.theexchange.africa

Safaricom, the government’s primary source of dividends, substantially increased its dividends payout. Other state-controlled enterprises, like the power generator KenGen and Kenya Re, also increased their contribution during the review period, which helped to boost the total amount of dividends.

The Treasury will receive a total payout of Sh19.4 billion for its 35 per cent telco ownership due to the dividend announcement, making it one of the most significant recipients of the windfall.

In February, Safaricom paid an interim dividend to the Treasury in the amount of 8.97 billion Kenyan shillings.

Safaricom declared a final dividend of 0.75 shillings per share, which will entitle it to receive an additional 10.5 billion by the 31st of August.…

CBK governor

President Uhuru Kenyatta, who was first elected in 2013, will retire after serving his two constitutional terms. Four presidential candidates were cleared by the Independent, Electoral and Boundaries Commission (IEBC) in the State House race.

They are Deputy President William Ruto of the United Democratic Alliance, Raila Odinga of the Azimio la Umoja One Kenya Coalition Party, David Mwaure (Agano Party) and George Wajackpoyah (Roots Party).

The outgoing head of state has endorsed Raila as his preferred successor to the chagrin of his deputy, who has accused him of interfering in the 2022 succession politics.

The central Bank of Kenya, in its July 2022 Monetary Policy Committee Market Perceptions Survey, notes that at the Nairobi Securities Exchange (NSE), NASI, NSE 25 and NSE 20 share price indices increased by 4.0 per cent, 4.1 per cent and 0.4 per cent, respectively, during the week ending July 28.…

2024 Sophos Threat Report

Savings and Credit Co-operative Societies (SACCOS) have embraced the new cybersecurity course launched by the Chartered Institute for Securities and Investments (CISI) in full throttle, given the gravity of cybercrime that has plagued the vibrant sector hitherto.

The latest financial sector stability report prepared by the Central Bank of Kenya (CBK), and the Sacco Societies Regulatory Authority (SASRA), stand but a distinct testament to the deleterious effects of cyberattacks on these lucrative financial institutions entrusted with members’ hard earned savings.

The report indicates that SACCOs lost Kshs 106 million, in the 17 months to March 2021 to cyber theft. To boot, the report deduces that the losses are an equivalent of Kshs 6.23 million per month or Kshs 208,000 daily; that was siphoned largely through software vendors, engaged by the SACCOs to provide technology solutions, exploiting weaknesses well known to them but unbeknownst to SACCOs.

The CISI cyber security course…

sugar
  • Uganda to resume sugar imports into Tanzania
  • Kenya is yet to allow the proposed import of 90000 tonnes of Ugandan sugar
  • Investigation missions pry into a source of Ugandan sugar

Tanzania will now import sugar and anti-retroviral (ARVs) drugs from Uganda after President Samia Suluhu managed to iron out over three years of trade creases between the two countries.

After the agreement, the two countries released a joint communiqué in which they published the trade agreement details. According to the executive communication, Uganda will now supply up to 10,000 tonnes of sugar to Tanzania every year.

This is a major turn of events from zero to 10000 tonnes which finally ends Tanzania’s 2019 ban on Uganda sugar. Before the 2019 ban on Uganda sugar imports into Tanzania, Uganda was exporting into Tanzania in excess of 20000 tonnes.

During the ban, Tanzanian officials had argued that the sugar that Uganda was …