Author: Muindi

Activity in Kenya’s private sector accelerated to a ten-month high in November despite a steady rise in input costs, showed Markit Stanbic Bank Kenya Purchasing Managers’ Index (PMI). The PMI reading was at 53.0 in November up from 51.4 in October to a ten-month high, signalling a solid upturn in the health of the private sector economy. Readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration. During the month, the resurgence of growth across the private sector economy witnessed an increase in demand at the fastest rate since May…

East Africa’s investment firm Centum recorded a pretax loss of Ksh 696.6 million for its first half ended September. This is compared with Ksh 2.05 billion loss in the same period a year earlier. Its trading profit grew from a loss of  Ksh 316.8 million to a profit of Ksh 255.3 million attributed to an improvement in its trading business as sales increased from  Ksh 136.3 million in HY21 to  Ksh 1.2 billion in HY22. “We have seen improved performance in the first half from the various business segments as they recover and the economy rebounds from the impact of…

The Central Bank of Kenya (CBK) says it will not cap interest rates charged by digital lenders but expects them to price their loans appropriately. “If you mean ourselves having sort of caps and things like that obviously the answer is no. We are not going into that part of the world again, we already explained why,” said Dr Patrick Njoroge in response to a question on whether the regulator would regulate the lenders. “What we do and I have been saying on the banking side is ensuring the pricing is appropriate in many ways and I think you have…

I&M Group Plc reported a 25.1 per cent increase in consolidated net profit from Ksh.4.6 billion Ksh 5.7 billion as a result of strong growth in interest income and a decline in interest expenses, both of which aided to improve the firm’s net interest margin.  The group’s net interest income rose by 34 per cent from Ksh 10 billion to Ksh 14 billion on account of improved earnings from government securities and a reduction in interest expenses. Total operating expenses increased by 28 per cent to Ksh9.7 billion as a result of Increased investment in digitization. The Group’s asset base…

Kenya’s current account deficit will close the year at 5.2 per cent of gross domestic product, its central bank governor said on Tuesday. Dr Patrick Njoroge said the current account deficit was forecast to fall to 5.2 per cent of gross domestic product in 2021, from the current 5.4 per cent in the 12 months to October 2021. This is a 0.6 per cent points increase from 4.8 per cent recorded over the same period in 2020. “We are on track…” he told a news conference virtually adding that “The current account is well anchored will support stability in the…

Kenya’s Monetary Policy Committee retained its benchmark lending rate at 7.00 per cent, an accommodative stance necessary to revive growth and come out of the Covid-19 induced stress. This is the 11th time the MPC has retained the interest rates. Being the last meeting of the year, it was held against a backdrop of the global COVID-19  pandemic, the continued rollout of vaccination programmes, other measures taken by authorities around the world to contain its spread and impact, and the emerging developments regarding a new COVID-19 variant. The committee further said the country’s inflation rate is expected to remain within…