Benchmark Lending rate

In Brief

CBK retains key rate at 10.5 percent

The Central Bank of Kenya (CBK) has maintained its benchmark lending rate at 10.5 percent in the latest review by the Monetary Policy Committee, citing falling inflation on favorable weather conditions. “Inflation is already within the target band, and is expected to decline further as food inflation is expected to come down,” the committee said in a statement. Kenya’s inflation declined to 7.3 percent in July 2023 from 7.9 percent in June, driven by lower food and non-food non-fuel inflation. At 7.3 percent, the country’s rate of rise in the cost of living within policymaker’s target range of 5 ±2 per cent. GDP data for

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EconomyNews

Banks exposure to GoK debt cut to a decade low

Local Kenyan lenders are holding the smallest portion of state debt in almost ten years as banks dump government securities on rate hikes, heightened risk of default and the possibility of restructuring. Central bank data shows the portion of domestic debt held by banks stood at 45.64 percent in April down from 54.8 percent in June 2020.   The last time banks held less than 50 percent of domestic debt was 49.4 percent in March 2014, and have been accumulating risk free state debt over the decade, (especially during the rate cap era) to a high of 57.8 percent in July 2015. Kenyan banks hold Kes2…

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