Author: David Indeje

The Central Bank of Kenya (CBK)  says the fresh coronavirus containment measures are “selective” with no substantial impact on the economy. “However, we do not know the duration,” said Dr Patrick Njoroge, CBK Governor at a media briefing post MPC meeting held Monday maintaining the CBR at 7.0% through Q2. “We need to give it time to understand. Things are still unclear on  what exactly the impact is,” Dr Njoroge said adding that “There are a lot of areas that have been untouched by the containment measures.” On Friday, President Uhuru Kenyatta restricted travel in the capital Nairobi and the…

Central Bank projects current account deficit at 5.2 per cent of GDP in 2021 Kenya’s current account deficit narrowed to 4.6 per cent of gross domestic product (GDP) in the 12 months to February 2021,  attributed to savings from oil imports and resilient earnings from exports and remittances.  This was a marginal improvement of one percentage point from November’s deficit of 4.7 per cent. “Provisional data on the balance of payments shows that the current account deficit narrowed to 4.6 per cent of GDP in the 12 months to February 2021 compared to 5.8 per cent of GDP in the…

Kenya’s annual inflation rate in March would accelerate further on the back of higher oil prices according to Market Analysts, but the Central Bank maintains it is well anchored. NCBA Market Research projects that inflation could hit 6.20% in March from 5.80% a month before. “However, weak demand should limit the risk of target overshoots. Demand could soften further as new restrictions cool consumer spending,” they note in their Weekly Fixed Income Report dated 26 March 2020. Cytonn Investments similarly expects an increase in the transport and fuel index which carries a weighting of 8.7% in the total consumer price…

The Central Bank of Kenya held its benchmark lending rate at 7.0% on Monday, the bank’s monetary policy committee said. The MPC said the current accommodative monetary policy stance remains appropriate. “The MPC will closely monitor the impact of the policy measures, as well as developments in the global and domestic economy, and stands ready to take additional measures as necessary. The Committee will meet again in May 2021, but remains ready to re-convene earlier if necessary,” the CBK noted.

NCBA Bank has recorded a decline in its net profit from KSh 7.8 billion to KSh 4.5 billion at the close of the financial year ended 31st December 2020. The listed lender attributed the decline to the coronavirus pandemic and containment measures which resulted in the disruption of regular business operations. “These factors resulted in higher delinquency levels thus necessitating that the Group prudently take significant loan loss impairment reserves, ultimately impacting the profit before taxation,” it disclosed in its audited financial results. This is the first time NCBA is announcing full-year results as an entity following the successful merger…

Kenya’s new containment measures and other restrictions due to the third wave of Covid-19 infections, market analysts see bad loans rising. “Businesses and households might once again struggle to service their loans and as such, most loans might be categorized in stage 3,” says Cytonn Investments. Stage 3 loan classification means that the loan’s credit risk has increased to the point where the loan is considered credit impaired or in default.  “The business disruptions that could result from the lockdown measures announced coupled with resultant supply chain disruptions will also lead to increased cost of risk for the banking sector,”…