Against the backdrop of persistent forex scarcity, businesses and individuals with dollar-denominated loans are grappling with a mounting crisis. Unable to access US dollars, borrowers in sectors such as real estate, transport, communication, and construction are resorting to repaying their debts in local currency, a move that is technically defaulting and contributing to the surge […]

In a significant policy shift, Kenya has formally announced its withdrawal from the Government to Government (G2G) oil deal with Saudi Arabia, citing concerns over its impact on the forex market and an inability to mitigate the fluctuating shilling-dollar exchange rate. Launched with much anticipation in April 2023 by President William Ruto, the G2G deal […]

Kenya is proactively tackling its financial challenges, with a specific focus on venturing into international bond markets. The impending maturation of a $2 billion Eurobond in June has intensified global interest, fueled by concerns over dwindling hard currency reserves, a significant currency depreciation, and revenue limitations. While the International Monetary Fund (IMF) raises red flags […]

In a significant move to bolster Kenya’s economic landscape, the Cabinet, under President William Ruto’s leadership, has greenlit several crucial financial reforms. In addition to these key reforms, the Cabinet also approved the Recognition of Prior Learning Policy, Establishment of the African Legal Support Facility, and the Memorandum to Join the Asian Infrastructure Investment Bank. […]

In a significant economic development, the Kenyan shilling experienced a historic low on Monday, breaching the Sh160.23 mark against the US dollar. This decline, part of a sustained weakening trend, has raised concerns across financial sectors. Last month, the Central Bank of Kenya (CBK) responded to the ongoing depreciation by unexpectedly raising interest rates by […]

Equity Bank Kenya has entered the financial landscape with a strategic launch – ‘Boostika.’ This unsecured overdraft facility is poised to directly challenge Safaricom’s Fuliza, offering customers the ability to overdraw their accounts up to Sh100,000 for seamless transactions, particularly in shopping scenarios. Boostika, boasting an effective cost of credit at 8.5%, is designed to […]

In a significant relief for the agricultural and small business sectors, the Kenya Revenue Authority (KRA) has implemented targeted exemptions from the electronic tax invoice management system (eTims). With immediate effect, businesses with an annual turnover below Sh5 million are now spared from the electronic invoicing requirement, a move set to alleviate compliance pressures on […]

In the upcoming January 2024 Treasury bond sale, investors are preparing for a formidable challenge as interest rates are predicted to surge beyond the 18 percent mark. This projection stems from thorough analyses by reputable investment banks, including Genghis Capital, Sterling Capital, and AIB-AXYS Africa. The bond offering consists of a new three-year bond and […]

In response to a challenging fiscal landscape, Kenya’s National Treasury has revised its borrowing strategy for the 2023/24 fiscal year. The move, announced today, reflects a pragmatic response to lower-than-expected tax collection and a downward revision of ordinary revenue forecasts. Originally targeting Sh718.9 billion in borrowing, the Treasury has now increased its goal by Sh168 […]

Recent data from the Central Bank of Kenya (CBK) reveals a substantial uptick in the interbank lending rate, reaching a near five-month high as the CBK enforces a more robust monetary policy. The mean lending rate between banks stood at 14.3 percent on January 2, 2024, representing the highest level since August 7 and at […]