Kenya Budget FY 2019/2020 – Unpacking some key pronouncements

The government’s undeniable optimism in the country’s economic growth projections cannot be understated. During the budget reading for the 2019/2020 fiscal year, the Treasury Cabinet Secretary underscored the government’s belief that the impressive economic growth momentum recorded in 2018 will be maintained this year. That is to say, the economic expansion will be close to … Continue reading Kenya Budget FY 2019/2020 – Unpacking some key pronouncements

Affordable Housing in Kenya – A beautiful facade?

Kenya’s economy is undoubtedly one of the most robust in the East African region. In the year 2018, the economy recorded an impressive 6.30% expansion, its fastest growth in nearly a decade, supported by agriculture and a vibrant service sector. A consequence of this economic growth has been rapid urbanization exacerbated by a growing middle … Continue reading Affordable Housing in Kenya – A beautiful facade?

Economic Take: Monetary Policy, Interest Rates and Liquidity

Week ending 22nd March 2019 Pervasive and systemic risks stemming from the global economic downturn has contributed to a shift to easier monetary policy either in the form of delayed normalization or outright policy rate cuts. It was therefore no surprise when the US Federal Reserve and UK monetary policy committee (MPC) committed to keeping … Continue reading Economic Take: Monetary Policy, Interest Rates and Liquidity

Kenya’s Monetary Policy Remains Limited

Hot Blooded Business

Last year, calls for monetary policy accommodation were on the rise given the need to prop up economic growth at a time of subdued business activity. However, the Central Bank’s reluctance could have been linked to its aversion towards the protracted electoral cycle and the capped interest rate environment that limited the effective transmission of monetary policy.

A better political landscape and improving macroeconomic variables has since improved investor sentiments towards the economy and could have also paved way for the much needed 50bps policy rate cut in March 2018. This was also complemented by prospects of a healthy global economy, rising commodity prices and a globally weak US dollar (y/y). It also looked more than likely that a policy rate cut would do more good than harm despite the capped interest rate environment.

That said, in its latest policy setting meeting this May, the monetary policy committee (MPC) left…

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OPEC fuelling Oil Prices

OPEC is due to meet on November 30th 2016 so as to agree on limiting oil outputs. This decision has been long awaited as oversupply continues to put downward pressure on oil prices. It has been close to 4 months since an outline of the deal was established but negotiations have proven difficult and continue … Continue reading OPEC fuelling Oil Prices

The puzzling Kenyan Banking (Amendment) Bill 2015

“A bank or financial institution shall set the: Maximum interest rate chargeable for a credit facility in Kenya at no more than four per cent, the base rate set and published by the Central Bank of Kenya and Minimum interest rate granted on a deposit held in interest earning in Kenya to at least seventy … Continue reading The puzzling Kenyan Banking (Amendment) Bill 2015

Consumer Spending Growth: Sub-Saharan Africa Setting the Pace

I don’t know about you but it gives me a sense of hope to know that Kenya, amidst all the politically motivated opinions of the slow economic growth, is expected to be among the fastest growing cities in Sub-Saharan Africa based on consumer spending. To compliment that, household income is also expected to improve in … Continue reading Consumer Spending Growth: Sub-Saharan Africa Setting the Pace

London has FALLEN

The movie "London has fallen" was released this year and it was (and still is) a high impact film that I thoroughly enjoyed... ...Little did the producers know (nor did I) is that the movie's name would speak volumes in the coming months due to... drum roll... BREXIT. (Sudden)Death versus (Forced)Resignation In the movie, the … Continue reading London has FALLEN

CBK Foreign Reserves = “Fight Back Power”

Since mid-May 2016, the CBK's foreign exchange reserves have been experiencing a downward trend as the CBK continues in its efforts to stabilize the Kenyan shilling against shocks both internal and external. On 23rd June 2016, the CBK reported a 1.08% decline in its foreign exchange reserve which translates to the largest decline year to … Continue reading CBK Foreign Reserves = “Fight Back Power”

Weekly Stats – April 25th to April 29th 2016

Reflecting on market performance... Last week the equity turnover experienced cyclical movements driven primarily but not solely by foreign participation. Large capitalization stocks experienced the greatest volatility. The NASI was fairly stable during the week as the N20 experienced a reversal in gains made mid through the week. All in all, last week proved that … Continue reading Weekly Stats – April 25th to April 29th 2016