The Kenyan government has embarked on a strategic plan to reduce recurrent spending by Ministries, Departments, and Agencies (MDAs), with the aim of saving an estimated Sh130.2 billion. This move, approved by the Cabinet on Tuesday, underscores the government’s commitment to fiscal responsibility. In a press statement, the Cabinet explained that the decision to streamline […]

The Central Bank of Kenya’s Monetary Policy Committee (MPC) decided to maintain the benchmark lending rate at 10.5% during its latest meeting, reaffirming its commitment to managing inflation within the targeted range. This decision comes after a previous rate increase of 100 basis points in June, which was implemented to counter inflationary pressures. The MPC’s […]

Amidst the soaring cost of living in Kenya, low-income households find themselves grappling with the harsh realities of high inflation. A recently released report by the Kenya Institute for Public Policy Research and Analysis (KIPPRA) sheds light on the hardships endured by the nation’s less privileged citizens throughout 2022. Director of KIPPRA, Rose Ngugi, emphasized […]

In a significant development, the European Commission has given its nod to Kenya’s Economic Partnership Agreement (EPA) with the European Union. This move is a crucial step towards granting Kenyan goods duty-free access to the vast European market. The European Commission, responsible for negotiating trade deals on behalf of the EU, has formally endorsed the […]

Kenya has taken a significant step toward enhancing economic stability within the African continent by formally joining the Pan African Payments and Settlement System (PAPSS). Trade Cabinet Secretary Moses Kuria made this announcement highlighting the pivotal implications of this move. The primary benefit of Kenya’s inclusion in PAPSS is that it now enables Kenyan companies […]

Kenya is facing a substantial increase in interest payments on its loans, driven by a weakening shilling. The National Treasury expects these payments to rise sharply, reaching Ksh 918.9 billion for the fiscal year ending June 2024. This marks a significant 33.7 percent increase from the previous year’s Ksh 687.3 billion. The key factors contributing […]

The Central Bank of Kenya (CBK) has initiated a strategic move to secure an additional Sh15 billion by reopening two September bonds. This decision comes as the fiscal agent for the government endeavors to maintain control over investor expectations and manage yields on government paper. In this offering, CBK is reopening two bonds with varying […]

In a thoughtful address delivered at the United Nations General Assembly in New York, Kenya’s President William Ruto has urged developed nations to embark on a comprehensive debt restructuring initiative. This initiative aims to provide timely assistance to vulnerable countries grappling with mounting sovereign debt burdens, preventing them from teetering on the brink of financial […]

Kenya’s banking sector is experiencing a significant boost as dollar deposits in commercial banks rose by Sh61 billion during July, reaching a remarkable Sh1.246 trillion ($8.47 billion). This surge, reported in the National Treasury’s Draft 2023 Budget Review and Outlook Paper, reflects the ongoing trend of dollar deposit growth driven by a weakening Kenyan shilling. […]

Kenya is witnessing a concerning surge in commercial bank lending rates, which have climbed to a 65-month peak of 13.5 percent as of July 2023. This surge reveals the cumulative impact of several economic factors on borrowers and has implications for both consumers and the financial sector. Data released by the Central Bank of Kenya […]