Friday March 31 2017
Kenya Inflation Rate Highest Since May 2012
Kenya National Bureau of Statistics | Deborah Neves | deborah.neves@tradingeconomics.com

Consumer prices in Kenya jumped 10.28 percent year-on-year in March of 2017, following a 9.04 percent rise in the previous month. It was the highest inflation rate since May of 2012 mainly driven by increasing prices in food.

Compared to March of 2016, prices rose faster for: food and non-alcoholic drinks (18.56 percent compared to 16.5 percent in February), housing and utilities (2.45 percent from 2.33 percent), transport (4.89 percent from 4.26 percent), furnishing and household equipment (3.1 percent from 3.04 percent), miscellaneous goods and services (3.64 percent from percent 3.34 percent) and restaurants and hotels (4.69 percent from 4.32 percent). Additional upward pressure came from clothing and footwear (4.17 percent from 4.32 percent) and alcoholic drinks, tobacco and narcotics (3.36 percent from 3.5 percent).

Month-on-month, consumer prices rose 1.67 percent following 1.72 percent gain in the previous month. Cost rose at a slower pace for food and non-alcoholic beverages (3.18 percent from 3.28 percent in the previous month), namely spinach, maize flour, milk, potatoes and maize grain, mainly driven by drought conditions. Meanwhile, cost continued to rise for housing, water, electricity, gas and other fuels (0.69 percent from 0.4 percent) mainly due to increases in house rents, cooking fuels and water services.




Monday March 27 2017
Kenya Leaves Monetary Policy Unchanged
Central Bank of Kenya | Deborah Neves | deborah.neves@tradingeconomics.com

The central bank of Kenya left its benchmark interest rate on hold at 10 percent at its March 27th 2017 meeting, in line with market expectations. Policymakers expect the inflation rate to remain above the government's target band of 2.5-7.5 percent due to food prices. Yet, consumer prices increased 9.04 percent year-on-year in February, the most since June of 2012.

Excerpts from the statement by the Central Bank of Kenya:

Overall inflation rose to 9.0 percent in February from 7.0 percent in January 2017, almost entirely due to increases in food prices. Food prices are expected to remain elevated in March and April due to the dry weather conditions, but ease with the long rains.

The foreign exchange market has remained stable. This has been supported by a narrower current account deficit mainly due to lower imports of petroleum products, machinery and transport equipment.

The banking sector remains resilient. However, the ratio of gross non-performing loans to gross loans increased to 9.7 percent in February 2017, largely due to tighter credit standards and slower credit growth.

The MPC Market Perception Survey conducted in March 2017 showed that private sector respondents expect a decline of growth in 2017, on account of the prevailing drought conditions and slowdown in private sector credit growth. However, the respondents expect the ongoing public investment in infrastructure to continue to be supportive growth.

The Committee concluded that overall inflation is expected to remain outside the Government target range in the near term due to the elevated food prices, even as demand pressures remain subdued. The Committee remains concerned about the prevailing uncertainties, including the impact of the interest rate caps on the effectiveness of monetary policy. 




Thursday March 02 2017
Kenya Inflation Rate Highest Since June 2012
Kenya National Bureau of Statistics | Deborah Neves | deborah.neves@tradingeconomics.com

Consumer prices in Kenya increased 9.04 percent year-on-year in February of 2017, following a 6.99 percent rise in the previous month. It was the highest inflation rate since June of 2012 as prices continued to rise sharply for food, caused by drought.

Compared to February of 2016, prices advanced faster for: food and non-alcoholic drinks (16.5 percent compared to 12.54 percent in January), housing and utilities (2.33 percent from 0.07 percent), transport (4.26 percent from 1.85 percent) and clothing and footwear (4.32 percent from 4.04 percent). Additional upward pressure came from: furnishing and household equipment (3.04 percent from 2.95 percent), miscellaneous goods and services (3.34 percent from percent 3.56 percent), restaurants and hotels (4.32 percent from 4.5 percent) and alcoholic drinks, tobacco and narcotics (3.5 percent from 2.87 percent).

Month-on-month, consumer prices rose 1.72 percent following 1 percent gain in the previous month. Cost went up the most for food and non-alcoholic beverages (3.28 percent from 1.66 percent in the previous month), namely collard greens, maize flour, milk, cabbages, spinach, potatoes and maize grain. Also, cost rose at a faster pace for housing, water, electricity, gas and other fuels (0.4 percent from 0.33 percent) mainly due to increases in electricity, house rents and charcoal; and transport (0.74 percent from 0.6 percent).


Tuesday January 31 2017
Kenya Inflation Rate at 12-Month High of 6.99%
Kenya National Bureau of Statistics | Deborah Neves | deborah.neves@tradingeconomics.com

Consumer prices in Kenya increased 6.99 percent year-on-year in January of 2017, following a 6.35 percent rise in the previous month and beating market expectations of a 6.24 percent gain. It was the highest inflation rate in one year, mainly boosted by higher prices for food, caused by drought.

Compared to January of 2016, prices advanced faster for: food and non-alcoholic drinks (12.54 percent compared to 11.22 percent in December of 2016), housing and utilities (0.07 percent from 0.06 percent), transport (1.85 percent from 0.29 percent) and alcoholic drinks, tobacco and narcotics (2.87 percent from 2.73 percent). Meanwhile, cost rose at a slower pace for: furnishing and household equipment (2.95 percent from 3.26 percent), clothing and footwear (4.04 percent from 4.38 percent), restaurants and hotels (4.5 percent from 4.98 percent) and recreation and culture (2.23 percent from 4.41 percent).
Month-on-month, consumer prices increased 1.66 percent following a 0.76 percent gain in December of 2016.
Cost went up the most for food and non-alcoholic beverages (1.66 percent from 1.31 percent in the previous month), namely fruits and vegetables and education (2.28 percent, after being flat in December). Additional upward pressure came from: housing, water, electricity, gas and other fuels (+0.33 percent from +0.41 percent) mainly due to increases in electricity, house rents and charcoal; transport (0.6 percent from 0.49 percent) and alcoholic beverages, tobacco and narcotics (+0.55 percent from +0.47 percent).


Thursday December 29 2016
Kenya Inflation Slows to 6.35% In December
Kenya National Bureau of Statistics | Deborah Neves | deborah.neves@tradingeconomics.com

Consumer prices in Kenya increased 6.35 percent year-on-year in December of 2016, following a 6.68 percent rise in the previous month but above market expectations of a 6.24 percent gain. Prices slowed for housing and utilities and transport but food inflation rose slightly.

Compared to December of 2015, prices increased at a slower pace for: furnishing and household equipment (+3.26 percent from +3.37 percent), clothing and footwear (+4.38 percent from +4.65 percent), transports (+0.29 percent from +1.29 percent), alcoholic drinks, tobacco and narcotics (+2.73 percent from +13.96 percent), restaurants and hotels (+4.98 percent from +5.77 percent), recreation and culture (+4.41 percent from +4.47 percent) and housing and utilities (+0.06 percent from +0.2 percent). Meantime, cost rose faster for food and non-alcoholic drinks (+11.22 percent compared to +11.13 percent).

Month-on-month, consumer prices increased 0.76 percent following a 0.71 percent gain in November.
Cost went up the most for food and non-alcoholic beverages (+1.31 percent from +1.17 percent in November), namely fruits and vegetables and alcoholic beverages, tobacco and narcotics (+0.47 percent from +0.11 percent). In addition, prices rose for housing, water, electricity, gas and other fuels (+0.41 percent from +0.11 percent) mainly due to increases in electricity, house rents and kerosene. Additional upward pressure came from transport (+0.49 percent from +0.55 percent), boosted by jump in petrol and diesel prices and higher bus fares associated with Christmas festivities, clothing and footwear (+0.79 percent from +0.7 percent) and miscellaneous goods and services (+0.64 percent from +0.09 percent).


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.