Kenya’s private sector witnessed modest improvement in December due to easing inflation and the strong performance of the services sector, according to the Stanbic Bank Kenya Purchasing Managers Index (PMI). The PMI rose to 48.8 from 45.8 in November 2023. However, the index remained below the 50.0 mark that separates expansion from contraction, signalling that the private sector continued to face challenges for the fourth consecutive month. During the period, inflation fell to 6.6% in December 2023, within the Central Bank of Kenya (CBK) target range of 2.5%–7.5%, due to lower food and fuel prices. In addition, the services sector, which includes tourism, transport,…
Author: Muindi
Muindi
Experience working on communication and marketing departments and in the broadcast industry. Interested in sustainable development and international relations issues.
The European Investment Bank (EIB) and the Central Bank of Kenya (CBK) have launched a two-year climate finance best practice program. The program has been funded by the German government through the International Climate Initiative Fund. The program, part of the EIB’s Greening Financial Systems scheme, aims to strengthen Kenyan financial institutions’ capacity and commitment to invest in climate-related projects, helping commercial banks support a net-zero and climate-resilient economy in Kenya. This is the first program of its kind in East Africa and will serve as a model for addressing the challenges that prevent commercial banks from engaging in climate…
The Bank of Tanzania (BoT) has adopted an interest rate-based monetary policy, effective January 2023, instead of the money supply. This change aims to enhance the effectiveness of monetary policy in achieving low and stable inflation and supporting economic activities. The BoT announced this change in a statement on Wednesday, January 3, signed by its governor, Emanuel Tutuba. Tutuba said the new framework aligns with Tanzania’s commitment to harmonize its monetary policy with other regional economic communities, especially the East African Community. “A change in the CBR will signal the direction of monetary policy, indicating either a tightening or expansionary…
Kenya’s Ministry of Labour and Social Protection will switch the mode of payment for the Inua Jamii cash transfer programme from bank accounts to M-PESA, a mobile money service. The change will affect the beneficiaries of the Orphans and Vulnerable Children (OVC) and Persons with Severe Disabilities (PWSD) cash transfer programmes, who will be required to enrol for M-PESA disbursements by the end of January 2024. The ministry said that the switch to MPesa will improve the efficiency, convenience, and security of cash transfers, as well as reduce the transaction costs and delays associated with bank accounts. “The first phase…
Inflation in Kenya fell to 6.6 per cent in December 2023, down from 6.8 per cent in November, mainly due to lower prices of some food and fuel items. “This was mainly driven by increases in prices of commodities under transport (11.7%); housing, water, electricity, gas and other fuels (8.3%); and food and non-alcoholic beverages (7.7%) between December 2022 and December 2023,” the KNBS said on Kenya’s inflation. Food inflation was slightly higher at 7.7 per cent, compared to 7.6 per cent in November, as some vegetable prices increased. Fuel inflation, on the other hand, dropped to 13.7 per cent…
Acorn Student Accommodation Development REIT (ASA D-REIT) sold one of its properties, Qwetu Aberdare Heights II, to Acorn Student Accommodation Income REIT (ASA I-REIT) for Sh1.48 billion. The property has 630 beds and is located near USIU. It is the fourth asset that ASA I-REIT has acquired from ASA D-REIT in the past three years, bringing its total portfolio to seven properties with 4,450 beds. The sale also increased the total asset value of ASA I-REIT to Sh10.5 billion. ASA D-REIT used part of the proceeds to repay Sh600 million of the Acorn Green Bond, which has a total value…