Wednesday November 30 2016
Kenya Inflation Rate at 9- Month High of 6.68%
Kenya National Bureau of Statistics | Luisa Carvalho | luisa.carvalho@tradingeconomics.com

Consumer prices in Kenya increased 6.68 percent year-on-year in November of 2016, following a 6.5 percent rise in the previous month and above market expectations of a 6.48 percent gain. It was the highest inflation rate since February, boosted by food cost.

Compared to November 2015, main upward pressure came from food and non-alcoholic drinks (+11.13 percent compared to +11.03 percent in October), namely fruits and vegetables; alcoholic drinks, tobacco and narcotics (+13.96 percent from +14.13 percent), followed by restaurants and hotels (+5.77 percent from +5.60 percent), clothing and footwear (+4.65 percent from +4.17 percent), recreation and culture (+4.47 percent from +4.34 percent) and education (+4.02 percent from +4.07 percent).

Month-on-month, consumer prices increased 0.71 percent following a 0.62 percent gain in October. Cost went up the most for food and non-alcoholic beverages (+1.17 percent from +0.96 percent in October) and alcoholic beverages, tobacco and narcotics (+0.11 percent from +0.01 percent), followed by housing, water, electricity, gas and other fuels (+0.11 percent from +0.16 percent); clothing and footwear (+0.70 percent from +0.55 percent) and transports (+0.55 percent from +0.37 percent).




Monday November 28 2016
Kenya Holds Key Rate at 10%
Joana Taborda | joana.taborda@tradingeconomics.com

The Central Bank of Kenya left its benchmark interest rate unchanged at 10 percent on November 28th 2016 amid mild inflationary pressures. The central bank last cut borrowing costs by 50bps in September.

The government targets inflation in a range of 2.5 percent to 7.5 percent and since January the inflation has been below target. In October, consumer prices rose 6.5 percent year-on-year.

Policymalers also mentioned stable consumer credit and a strong second quarter growth. The economy advanced 6.2 percent year-on-year in the three months to June, the highest expansion since third quarter of 2013.




Monday October 31 2016
Kenya Inflation Rate at 8-Month High
Kenya National Bureau of Statistics | Mojdeh Kazemi | mojdeh@tradingeconomics.com

Consumer prices in Kenya increased 6.34 percent year-on-The annual inflation rate in Kenya rose to 6.5 percent in October of 2016, from 6.3 percent in a month earlier. It was the highest inflation rate since February, boosted by food cost.

Compared to October 2015, main upward pressure came from food and non-alcoholic beverages (+11.03 percent +10.94 percent in September) and transport (+0.36 percent from -0.38 percent), followed by clothing and footwear (+4.17 percent from +3.77 percent); furnishings and household equipment (+3.23 percent from +3.66 percent) and hotels and restaurants (+5.6 percent from +5.4 percent). In contrast, prices went down for housing, water, electricity, gas and other fuels (-0.04 percent from +0.48 percent).

Month-on-month, consumer prices rose by 0.62 percent following a 0.34 percent gain in September. Cost went up for food and non-alcoholic beverages (+0.96 percent from +0.55 percent in September); housing, water, electricity, gas and other fuels (+0.16 percent from +0.05 percent) and transport (+0.37 percent from +0.3 percent). 


Friday September 30 2016
Kenya Inflation Rate Rises to 6.34% in September
Kenya National Bureau of Statistics | Mojdeh Kazemi | mojdeh@tradingeconomics.com

Consumer prices in Kenya increased 6.34 percent year-on-year in September of 2016, following a 6.26 percent rise in the preceding month. The figure came above market expectation of 6.2 percent gain as cost of food and housing went up at a faster pace. On a monthly basis, consumer prices rose 0.34 percent.

Year-on-year, prices went up for food and non-alcoholic beverages (+10.94 percent +10.85 percent in August), housing, water, electricity, gas and other fuels (+0.48 percent from +0.25 percent). Other upward pressure came from: clothing and footwear (+3.77 percent from +3.68 percent); furnishings and household equipment (+3.66 percent from +3.75 percent) and hotels and restaurants (+5.4 percent from +5.48 percent). By contrast, transport prices declined by 0.38 percent (-0.07 percent).

On a monthly basis, consumer prices increased by 0.34 percent following a 0.08 percent rise in the previous month. Food prices rose 0.55 percent (-0.19 percent in August), housing, water, electricity, gas and other fuels edged up 0.05 percent (+0.09 percent), while transport prices fell by 0.3 percent (+0.53 percent). 


Tuesday September 20 2016
Kenya Cuts Key Rate to 10%
Joana Taborda | joana.taborda@tradingeconomics.com

The Central Bank of Kenya lowered its benchmark interest rate by 50bps to 10 percent at its September 2016 meeting, surprising markets who expected no changes. It was the second rate cut so far this year, amid a decline in private sector credit growth while the inflation remained within the government target range.

Policymakers noted the inflation rate slowed to 6.3 percent in August of 2016 from 6.4 percent in July, remaining within the government’s target range. Also, the foreign exchange market remained stable, reflecting a narrower current account deficit due to higher tea and horticulture exports and lower oil imports. The central bank said the inflation is expected to decline in the short-term on moderate demand pressures.

Policymakers also showed concerns about a slowdown in private sector credit, which pose risks to growth. Concerns come a week after commercial banks' lending rates were capped by law. The government ordered commercial banks to limit lending rates to 4 percentage points above the key rate.


Wednesday August 31 2016
Kenya Inflation Rate Slows to 6.26% in July
Kenya National Bureau of Statistics | Mojdeh Kazemi | mojdeh@tradingeconomics.com

Consumer prices in Kenya increased 6.26 percent year-on-year in August of 2016, following a 6.4 percent rise in July. The figure came below forecasts of 6.77 percent jump as housing and utilities cost rose at slower pace while transport prices fell.

Compared to August 2015, prices of food and non-alcoholic beverages went up  10.85 percent (+10.8 percent in July), housing, water, electricity, gas and other fuels increased 0.25 percent (+0.9 percent) . Other upward pressure came from clothing and footwear (+3.7 percent from +3.5 percent); furnishings and household equipment (+3.8 percent from +3.5 percent) and hotels and restaurants (+5.5 percent from +5.1 percent). In contrast, transport prices fell by 0.07 percent (+0.8 percent in July)

On a monthly basis, consumer prices rose slightly by 0.08 percent following a 0.6 percent increase in the previous month. Food cost fell 0.19 percent (+1.1 percent in July), while transport prices rose by 0.5 percent (+1.1 percent) and housing, water, electricity, gas and other fuels edged up 0.09 percent (+0.15 percent).


Friday July 29 2016
Kenya Inflation Rate Accelerates to 6.4% in July
Kenya National Bureau of Statistics | Mojdeh Kazemi | mojdeh@tradingeconomics.com

Consumer prices in Kenya rose 6.4 percent year-on-year in July of 2016, after a 5.8 percent increase in the preceding month. It was the highest figure since March 2016, boosted by higher food prices.

Compared to July 2015, prices of food and non-alcoholic beverages surged 10.8 percent (+8.9 percent in June), housing, water, electricity, gas and other fuels rose 0.9 percent (+1.8 percent) and transport prices were up by 0.8 percent (+0.6 percent). In addition, cost increased for clothing and footwear (+3.5 percent from +3.6 percent); furnishings and household equipment (+3.5 percent from +3.8 percent) and hotels and restaurants (+5.1 percent from +5.5 percent).

On a monthly basis, consumer prices increased by 0.6 percent following a 1 percent rise in the previous month. Food inflation slowed to 1.1 percent (+2 percent in July), transport rose by 1.1 percent (+0.3 percent), whereas and housing, water, electricity, gas and other fuels edged down 0.15 percent (+0.08 percent). and prices of .


Monday July 25 2016
Kenya Keeps Key Rate Unchanged at 10.5%
Central Bank of Kenya| Mojdeh Kazemi | mojdeh@tradingeconomics.com

The Central Bank of Kenya left its benchmark interest rate on hold at 10.5 percent at its July 2016 meeting, saying a rise in inflation is expected following a hike in fuel taxes. The decision came in line with market expectations and follows a 100bps cut in May.

Excerpts from the statement by the Central Bank of Kenya:

Overall inflation increased to 5.8 percent in June 2016, from 5.0 percent in May, but remained within the Government target range. The CPI category food and non-alcoholic beverages accounted for 3.8 percentage points of the monthon-month inflation in June from 2.8 percentage points in May. This increase waslargely due to prices of some food items such as tomatoes, Irish potatoes, and cabbages. On the other hand, month-on-month non-food-non-fuel (NFNF) inflation declined to 5.0 percent in June from 5.4 percent in May. The 3-month annualised NFNF inflation fell to 3.3 percent in June from 5.2 percent in May, indicating that there were no significant demand pressures in the economy.

The foreign exchange market has remained stable, reflecting a narrower current account deficit due to a lower import bill, improved tea and horticulture exports, and stronger diaspora remittances. The stability was also supported by the CBK’s closer monitoring of the market before and after the U.K. vote to leave the European Union (Brexit).

The CBK’s foreign exchange reserves currently stand at USD7,794.1 million (5.1 months of import cover) up from USD7,682.0 million at the end of May 2016. These reserves, together with the Precautionary Arrangements with the International Monetary Fund (IMF) continue to provide adequate buffers against short-term shocks.

The banking sector continues to stabilise with improving liquidity conditions, and stable non-performing loans in May and June. The ratio of gross non-performing loans to gross loans  fell marginally from 8.5 percent in May to 8.4 percent in June 2016. The CBK will continue to closely monitor credit and liquidity risks.

The performance of the economy remains strong, posting a growth of 5.9 percent in the first quarter of 2016, compared with 5.0 percent in a similar period of 2015. Positive growth rates were registered across all sectors of the economy. Improved security and confidence in the economy continued to support the recovery in tourism. 

The MPC Market Perception Survey conducted in July 2016, shows the private sector remains optimistic for a higher growth in 2016 supported by macroeconomic stability, infrastructure investment, strong agriculture performance, and tourism recovery.

The Committee also reviewed the Kenya Banks’ Reference Rate (KBRR). In line with the framework, the CBK has revised the KBRR to 8.90 percent from 9.87 percent, effective from July 25, 2016. 


Thursday June 30 2016
Kenya Inflation Rate at 3-Month High of 5.8% in June
Kenya National Bureau of Statistics | Mojdeh Kazemi | mojdeh@tradingeconomics.com

Consumer prices in Kenya increased 5.8 percent year-on-year in June of 2016, accelerating from a 5 percent rise a month earlier. It was the highest figure since March 2016, driven by cost of food.

Year-on-year, prices of food and non-alcoholic beverages went up at faster pace (+8.9 percent from +6.5 percent in April), while cost rose at a slower pace for housing, water, electricity, gas and other fuels (+1.8 percent from +2.1 percent); transport (+0.63 percent from +1.16 percent). In addition, prices also increased for clothing and footwear (+3.6 percent from +4 percent); furnishings and household equipment (+3.8 percent from +4.2 percent) and hotels and restaurants (+5.5 percent from +5.2 percent).

On a monthly basis, consumer prices went up by 1 percent following a 0.55 percent increase in the previous month. Food inflation accelerated to 2 percent (+0.8 percent in May) and housing, water, electricity, gas and other fuels edged up 0.08 percent (+0.09 percent) and prices of transport rose by 0.3 percent (+0.5 percent) in May.


Tuesday May 31 2016
Kenya Inflation Rate Slows to 5% in May
Kenya National Bureau of Statistics | Mojdeh Kazemi | mojdeh@tradingeconomics.com

Consumer prices in Kenya went up 5 percent year-on-year in May of 2016, easing from a 5.27 percent in April. It was the lowest reading since June 2013, as cost of food and housing and utilities increased at a slower pace.

Year-on-year, prices increased for food and non-alcoholic beverages (+6.54 percent from +6.84 percent in April); housing, water, electricity, gas and other fuels (+2.14 percent from +3.37 percent); transport (+1.16 percent from -0.74 percent); clothing and footwear (+4.05 percent from +4.86 percent); furnishings and household equipment (+4.21 percent from +4.5 percent) and hotels and restaurants (+5.21 percent from +5.45 percent) .

On a monthly basis, consumer prices increased by 0.55 percent following a 0.69 percent rise in the previous month. Food inflation went up 0.82 percent (+1.48 percent in April) and housing, water, electricity, gas and other fuels edged up 0.09 percent (+0.15 percent) and transport cost rose by 0.55 percent from a 0.42 percent fall in a month earlier.