Browsing: The Central Bank of Kenya (CBK)

• Kenya’s GDP, powered by broad-based growth in services and industry, increased by 6 per cent year-over-year in the first half of 2022
• The agricultural sector’s performed poorer, with a 1.5 per cent contraction in the first half of 2022
• Kenya’s medium-term growth prospects remain favourable, with GDP expected to expand by an average of 5.2 per cent in 2023–2024

Kenya’s gross domestic product (GDP), powered by broad-based growth in services and industry, increased by 6 per cent year-over-year in the first half of 2022.

The post-COVID -19 recovery was hampered by fluctuations in global commodity prices, a protracted drought in the country, and apprehension over the general elections in 2022.

According to the 26th issue of the Kenya Economic Update (KEU), households throughout the nation have been impacted by the drought and rising living expenses.

Due to the agriculture sector’s poor performance, which resulted in a 1.5 per …

The Central Bank of Kenya (CBK) has retained its benchmark lending rate at 9.0 per cent for the sixth straight time since bringing it down in July 30 2018, sparing borrowers higher cost of loans.

The Monetary Policy Committee (MPC) which is CBK’s top decision making organ met on Wednesday to review the country’s macroeconomics.

Chaired by CBK governor Patrick Njoroge, the committee held retained the rates where there have been for almost a year, even as the capping of interest rates continues to affect lending trends by banks.

President Uhuru Kenyatta signed into law a Bill capping bank interest rates at 4 per cent above the Central Bank Benchmark Rate, in August 2016.

With the bench mark rate at 9.0 per cent, banks can only charge interest of up to 13 per cent.

READ ALSO:Why banks in Kenya will lend at a maximum 13%

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Among the …