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Browsing: Kenya National Bureau of Statistics (KNBS)
- The cost of borrowing in Kenya has been going up since October last year, when it was at 10.50 per cent, before two consecutive raises.
- This means banks are likely to adjust their interest rates upwards, pushing the cost of borrowing beyond the reach of many.
- The majority of bank rates are currently above 20 per cent, amid a high default rate as banks struggle with Non-Performing Loans (NPLs).
Higher interest rates to raise the cost of borrowing in Kenya
The cost of borrowing in Kenya is set for yet another rise if banks are to factor in the latest Central Bank of Kenya increase in the base-lending rate.
The Central Bank of Kenya (CBK) has raised borrowing costs to highs last seen nearly 12 years ago, as it moves to try and contain the country’s inflation, which has started to pick.
On Tuesday, the Monetary Policy Committee, CBK’s top …
- Inflation in Kenya slightly increased to 6.9 per cent in January after declining for two consecutive months in November and December.
- Official statistics show that increases in food, energy, and transportation costs, which together account for about 57 per cent of household budgets, drove up inflation in Kenya.
- Between December 2023 and January 2024, the prices of Irish potatoes, carrots, oranges, and cabbages increased.
In January, inflation in Kenya increased marginally to 6.9 per cent, attributed to a rise in food prices. This comes after a consecutive decline in inflation for two months in November and December, easing below the statutory level to 7.3 per cent in July.
November recorded 6.8 per cent, decreasing to 6.6 per cent in December. The latest statistics from the Kenya National Bureau of Statistics (KNBS) indicate that consumers in Kenya will need to dig deeper into their pockets to buy basic food items.
Inflation
…- Kenyan Shilling, which has been on a free-fall against the Dollar since mid-last year, fell to a record-low of 162 to the greenback with projections it could tumble further into the year.
- The unit has shed over 31 per cent of its value to the dollar year-to-date, as the Fed rate hikes in the US took a toll on currencies across the different markets.
- According to Kenya National Bureau of Statistics (KNBS), the Kenyan shilling also ceded ground against the Euro, Pound Sterling and the Japanese Yen.
The Kenyan government is facing a major headache as the country’s currency continues to fall against the US Dollar and other major currencies, hitting a new low this week.
Kenyan shilling, which has been on a free-fall against the dollar since mid-last year, fell to a record-low of 162 to the greenback with projections it could tumble even further this year.
The local…
- Uganda has moved to the East African Court of Justice (EACJ) over alleged Kenya's move to block it from importing its refined petroleum products.
- In 2016, Uganda opted to work with Tanzania to develop a pipeline to evacuate crude oil from its fields in Hoima, western Uganda.
- This dealt a blow to an initial plan to jointly construct a 1,500-kilometre-long pipeline from oil-rich Hoima to Kenya’s Lamu port, a project envisioned to cost about $2.5 billion.
Kenya’s fallout with Uganda on importing refined petroleum products has caused another rift between the neighbouring countries, threatening trade and bilateral relations.
On December 28, last year, Kampala lodged a case at the East African Court of Justice (EACJ) against Nairobi for blocking its plans to shift from purchasing petroleum products from Kenya to importing consignments.
Over the year, Oil Marketing Companies (OMCs) in Uganda have picked imports from Kenya Pipeline’s depots in Eldoret…
- Kenya’s electricity imports from its neighbours have more than doubled
- For years, Ethiopia has supplanted Uganda from position one, Kenya’s top source of power imports.
- The East African nation has revealed that it needs $5.3 billion to overhaul power transmission lines and forestall frequent blackouts.
Kenya’s electricity imports from its neighbours have more than doubled in the past year amid increased demand and a slower pace of investment in energy infrastructure.
Data by the Kenya National Bureau of Statistics (KNBS) said the country imported 706.9 million kWh of electricity from Ethiopia and Uganda in the first 11 months of 2023, up from 288.27 million kWh in a similar period in 2022.
The bulk of the power imports — 546.5 million kWh — were sourced from Ethiopia during the period, according to KNBS, with the country emerging as Kenya’s biggest electricity supplier in the region. (pamblancopainting.com) Ethiopia has supplanted …
- Kenya’s input prices and output charges rise at much softer rates.
- New orders decrease slightly, survey shows.
- Declines in output and employment ease.
Kenya’s private sector business conditions showed a strong move towards stability in December 2023, as revealed by the latest Purchasing Managers’ Index findings, even though businesses remained less optimistic about the future into 2024.
According to the Stanbic Bank Kenya PMI compiled by S&P Global, rises in input costs and output prices were the softest since April of the previous year, having slowed markedly from record highs in October.
Kenya’s private sector experiences uptick in client spending
Consequently, many companies experienced a recovery in new work amid improved client spending, offsetting the impact of cost-of-living pressures. As a result, new orders, output, and employment all declined to lesser degrees.
The headline figure derived from the survey is the PMI. Readings above 50.0 signal an improvement in …
Nairobi will continue purchasing fuel on credit from three state-owned Gulf oil marketers until December 2024 in a plan the government is banking on to ease piling pressure on Kenya’s forex reserves.
The move comes in the wake of high expenditure on oil imports even as Kenya remains a net importer grappling with a widening trade deficit that hit $10.8 billion last year. Last year, Kenya’s expenditure on imports rose by 17.5 per cent to $16.9 billion (KSh2.5 trillion), despite growing export volumes.…
- Businesses in Kenya are facing the impact of tightened monetary policy that is resulting in high lending rates.
- The government is under increasing pressure from investors to settle huge pending bills.
- At the same time, the Kenya Shilling is steadily losing ground against major world currencies, piling pressure on external debt obligations.
In the second half of the year, business optimism for companies and sectoral growth prospects in Kenya appears to be subdued, largely influenced by the dual challenges of high taxes and a weakening Shilling.
The government's task of balancing rising debt levels with tax revenue generation is taking center stage in a scenario complicated by other economic factors.
A confluence of high-interest rates within the banking sector, a politically sensitive environment, the accumulation of pending bills that impact private sector cash flow, and the depreciation of the Kenyan Shilling is painting a complex business environment.
The Shilling has…
- Kenya’s inflation has eased for the second month in a row since hitting 8% in May.
- The drop in the cost of living came despite increased taxes on pump prices that is manifesting in higher transport costs.
- Previously, Central Bank Governor Kamau Thugge projected Kenya’s inflation to fall within the target band of 2.5% to 7.5% by October.
Kenya’s inflation eased in the month of July, going below the Central Bank of Kenya’s target range of between 2.5 per cent and 7.5 per cent for the first time in over a year. In the month under focus, Kenya’s inflation dropped to 7.3 per cent down from 7.9 per cent in June. The drop in the cost of living came despite increased taxes on pump prices that is manifesting in higher transport costs.
Consumer prices went up by 7.3 percent annually in July, marking the slowest rate in 14 months. This …
- In Kenya, mining yields high-grade quantities of gold, copper, ilmenite and tantalum.
- Kenya is an important source of non-metallic minerals including soda ash, limestone, salt, niobium, fluorspar and fossil fuels.
- Titanium ores have for the last decade remained top mineral forex earner for Kenya.
A plan to give Kenya's mining sector a makeover is underway, with policymakers banking on reforms that can attract investors as the country seeks to grow the revenue base.
The move comes four years since the 2019 government moratorium on the issuance of new prospecting and mining licenses. At the time, the government had not renewed licenses since 2015 when about 65 companies saw their permits revoked.
Those in operation run under a gazette notice. For companies whose permits expire, they are forced to seek special clearance from the ministry. The freeze on issuance of new licenses was to allow for geospatial surveys to map out…