NAIROBI (Xinhua) --
Kenya’s central bank (CBK) has reduced the benchmark lending
rate or the Central Bank Rate by 50 basis points to 10 percent,
following the interest rate caps.
The CBK’s Monetary
Policy Committee said the reduction was expected to ease
inflation, which it said was expected to decline within a short
"The committee observed that the demand pressures on
inflation are moderate and inflation is expected to decline in
the short term, but the committee remains concerned about the
persistent slowdown in private sector growth," CBK governor
Patrick Njoroge said in a statement.
Njoroge said the CBK will continue to monitor developments in
the domestic and international economies and will use the
instruments at its disposal to maintain overall price and
financial sector stability.
The CBK says continued decline in the growth of private
sector credit since July poses a risk to economic growth.
However, a survey conducted by the CBK Monetary Policy
Committee earlier this month shows the private sector remains
optimistic for an improved businesses environment in 2016.
This, the survey said, will be backed by macroeconomic
stability, public investment in infrastructure, improved
agricultural performance and a further recovery in tourism.
The CBK said it is closely monitoring the impact of the new
law, which caps interest rates by commercial banks, on monetary
policy and on the overall economy.
"The CBK will continue to put in place measures to
sustainably reduce the cost of credit and improve liquidity
management," Njoroge said.
Nairobi bourse turnover
swells 68 per cent despite top stocks dip
NAIROBI (Xinhua) --
The Nairobi Securities Exchange (NSE) turnover
rose 68 per cent to 4.8 million U.S. dollars Tuesday on a volume
of 21 million shares from 12 million shares worth 2.8 million
dollars the previous day.
However, despite the surge in trading, Tuesday’s session was
characterized by decline in prices of top stocks.
Some 14 stocks that make the indicative NSE 20 Share Index
registered price drops, sending the indicator 27 points lower to
On the other hand, Kenya Power, Sasini, Kenya Airways and
Barclays Bank lost as much 10 per cent on their share prices.
Safaricom was the day’s biggest mover, with 5.3 million
shares changing hands at an average of 0.19 dollars.
In the banking sector, some 11.4 million shares that
represented 53 per cent of the day’s traded volume were traded.
Kenya Commercial Bank actively moved 4.8 million shares at
0.26 dollars, while Cooperative Bank was unchanged at 0.11
dollars to trade 3.5 million shares.
The commercial and services sector had 1.6 million shares
traded while the energy sector traded 1.3 million shares.
The bond market had securities worth 14 million dollars
transacted compared to 16 million dollars registered the
Some top stocks rise to
lift Nairobi bourse key index amid low trading
NAIROBI (Xinhua) --
The bourse opened the week on a low, with a total
of 12.8 million shares valued at 2.8 million U.S. dollars traded
Monday, against 15 million shares worth 3.5 million dollars
Despite the low trading, some top stocks gained over 1
percent to push the NSE 20 Share Index up 12.76 points to stand
Similarly, the All Share Index ended 0.66 points higher to
stand at 132.24 and the NSE 25 Share Index climbed up 28.63
points to settle at 3,487.42.
The top 20 stocks that gained include Kenya’s leading telecom
Safaricom (1 percent), Equity Bank (1 percent), Kenya Commercial
Bank (1 percent) and Centum Investment (1.2 percent).
Safaricom moved 2.1 million shares at 0.19 dollars to be the
top trader at the bourse from 2.7 million in previous session.
The banking sector had 3.8 million shares traded to represent
30 percent of the day’s traded volume. Equity Bank saw 1.25
million shares exchange hands at a high of 0.26 dollars while
KCB traded 570,000 shares at the same price.
In the investment sector, some 2.8 million shares traded to
represent 23 percent of the day’s traded volume.
Home Afrika was the most heavily traded counter in the sector
with 2.4 million shares at 0.01 dollars while Centum investment
went up 1.2 percent to 0.43 dollars and moved 257,000 shares.
The commercial and allied sector had 1.1 million shares
traded with Kenya Airways closing 2.7 percent lower to 0.03
dollars on a volume of 788,000 shares.