Kenya braces for defaults, expensive credit with benchmark rate at seven year high
Kenya’s new Central Bank Governor Dr Kamau Thugge has raised rates by 100 basis points to a seven year high of 10.5 percent, in an emergency meeting in his first days in office that has bewildered the market as to the urgency of such a hike. Inflation remains high at 8 percent in May but just slightly higher than 7.9 percent in April when his predecessor former Governor Patrick Njoroge held rates unchanged at 9.5 percent. Analysts say the new Governor may be anticipating a surge on inflation this month after President William Ruto accented to the new Finance Act that seeks to impose a…
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