Author: David Indeje

Central Bank of Kenya has retained the base lending rate at 9.0 percent arguing that there’s a need to “monitor the 2nd-round inflationary effects arising from the VAT on petroleum products” and more time to benefit from the limit set in July. “The committee noted that inflation expectations remained well anchored within the target range, but concluded that there was need to monitor the second-round inflationary effects arising from the VAT on petroleum products and any perverse response to its previous decisions,” said Patrick Njoroge, Chairman, Monetary Policy Committee. The Monetary Policy Committee, however, projects inflation will remain within the…

The High Court in Nairobi has suspended the ban on Rafiki film for seven days to allow the lesbian-themed film a chance to qualify for the Oscars. https://twitter.com/katibainstitute/status/1043062364793393152 Justice Wilfrida Okwany said she is not convinced that Kenya is a weak society whose morals will be weakened by watching the movie. “I am not convinced that Kenya is such a weak society that its moral foundation will be shaken by seeing such a film. Gay theme or the practice of homosexuality did not begin with Rafiki.” Wanuri Kahiu sued the Kenya government after the Kenya Film Classification Board (KFCB) banned…

Kenya’s National Treasury has cut this year’s fiscal spending budget by Ksh 55.1 billion from  June 2017 aimed at reducing the overall fiscal deficit and debt accumulation. “The government is pursuing a fiscal consolidation policy that is aimed at reducing the overall fiscal deficit and debt accumulation,” Henry Rotich says, adding that the expected outcome is a reduction of overall expenditure and net lending from 26.3 per cent in the fiscal year 2018/19 to an average of 23.2 per cent in the medium term. However, economists have been wary of such. “The much-needed restoration of the country’s fiscal space may…

The International Monetary Firm and the World Bank “are extremely excited by the emerging crisis” within Kenya after the country’s  $1.5 Billion Stand-By Arrangement with the IMF came to an end on Friday. “The program has ended. We will continue engaging the fund going forward” Kenya’s Finance Minister Henry Rotich was quoted by Reuters. “We continue to build our reserves. We did not draw down on the IMF programme. It definitely says Kenya has come of age about reliance on IMF programmes, but we will continue to engage on new facilities or arrangement that suits Kenya going forward,” he said.…

The Central Bank of Kenya has fined five big banks Ksh 392.5 million for transacting illegally with the National Youth Service (NYS). “CBK announces the conclusion of the first phase of the investigation of the banks that were used by these persons in transacting the NYS funds. The investigations prioritised banks that handled the largest flows, namely; Standard Chartered Bank Kenya Ltd, Equity Bank Kenya Ltd, KCB Bank Kenya Ltd, Co-operative Bank of Kenya Ltd, and Diamond Trust Bank Kenya Ltd,” said the regulator said in a statement issued on Tuesday. “The actions taken by CBK and subsequently by other…

As African and global leaders meet in Kigali, Rwanda for the 8th African Green Revolution Forum, there is renewed pressure for the continent to deliver reforms around access to land and markets, extension services, and private sector investments in order to unlock its agricultural potential. In 2016, the report indicated that Africa’s agriculture sector loses about $4 billion to post-harvest losses yearly and as a result, its annual import bill is $35 billion and projected to $100 billion by 2030. “Agriculture is key to Africa’s future. The continent has most of the world’s arable land, over half of the African…