Browsing: Central Bank of Kenya (CBK)

• Index shows that 90% of Kenya’s consumers who receive money transfers want integrated mobile ‘super apps’ so they can manage remittances with other financial needs.
• Kenya’s receivers want choice in digital and in-person remittance platforms as they look to the future.
• Kenya is a leader when it comes to financial innovation especially in the world of mobile money.

Kenya’s consumers are calling for greater innovation in international money transfer services so they can easily manage their personal finance needs.

According to Western Union’s inaugural Global Money Transfer Index, about 90 per cent of Kenya’s receivers want providers to offer remittance services in an integrated mobile ‘super app’, so they can efficiently manage collecting remittances with other commitments, such as paying for utilities.

The Global Money Transfer Index asks consumers how, when and why they use international money transfer capabilities today, as well as their expectations for tomorrow.

The results …

• Usable foreign exchange were recorded at USD 6.56 billion last week, which is equivalent to 3.66 months of import cover.
• The shilling has continued to weaken against the US Dollar to a record 130 units to a dollar.
• The country has witnessed a dollar shortage in recent months.

The Kenyan government has put in place a number of measures to tame the country’s dwindling forex reserves and a biting dollar shortage that is being witnessed in the market.

The East African Community (EAC) economic powerhouse is also grappling with a weakening shilling that has dropped by about 12 per cent against the US dollar, the highest in two decades.

It has breached the 130 mark to a dollar, which is a record high. Importers are however accessing the dollar at Ksh145 to the dollar, which has impacted on the cost of imports and commodity prices.

Usable foreign exchange was recorded …

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 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 …

• 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 …

The confirmation of William Ruto as president indicates that Kenya will remain on track with its IMF program and plans to strengthen medium-term public finances, but a sovereign credit 2022 ratings downgrade remains inevitable in the subsequent months.…

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.…

The Kenyan stock market resumed Wednesday following the general election break with a $268 million gain, as early results revealed a close contest involving Deputy President William Ruto and former Prime Minister Raila Odinga.…

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.…

The most significant concern is Africa’s susceptibility to growing inflation in developed and developing economies, given the continent’s reliance on imports.…