Kenya’s economy is riding a wave of earlier monetary easing, stable exchange rates and a landmark debt issuance on the horizon - and all eyes are on whether that momentum will hold through the next quarter.
Monetary Policy. The CBR stands at 9.75% following the June 10 MPC decision – the sixth straight cut. Inflation picked up slightly to 4.1% in July, keeping policymakers on watch ahead of the August 12 meeting. The official line is that cheaper credit will support growth and narrow the current account gap to 1.5% of GDP. Behind the scenes, the Central Bank of Kenya (CBK) has been leaning on commercial banks to pass lower rates through to borrowers - a shift still patchy in practice.
Regulation. The CBK’s draft rules for non-deposit-taking credit providers, including digital lenders, remain in play. These would tighten governance vetting, force full cost disclosure and ban aggressive recovery tactics like harassment or public shaming. Lenders would also need to display licences,...
You must be signed in to read this content. Please enter your user name and password below for access. Want the full Brief? Register free for full access to 16+ countries. Register for free here.