Monday April 30 2018
Kenya Inflation Rate Lowest Since 2013
Kenya National Bureau of Statistics | Stefanie Moya | stefanie.moya@tradingeconomics.com

Consumer prices in Kenya increased 3.73 percent year-on-year in April of 2018, easing from a 4.18 percent rise in the previous month. It was the lowest inflation rate since January of 2013, as prices slowed for food and non-alcoholic beverages amid good weather conditions and the strengthening of the currency.

Compared to April of 2017, prices eased for food and non-alcoholic beverages (0.26 percent from 2.19 percent in March); restaurant and hotels (6.04 percent from 6.61 percent) and communication (0.79 percent from 0.81 percent). In contrast, cost advanced further for housing and utilities (11.80 percent from 8.98 percent); transport (7.01 percent from 6.61 percent); clothing and footwear (4.09 percent from 3.85 percent) and furnishings and household equipment (4.61 percent from 4.25 percent). Also, prices went up faster for miscellaneous goods and services (4.74 percent from 4.61 percent) and education (5.09 percent from 5.08 percent).

On a monthly basis, consumer prices edged up 1.35 percent, after rising 1.39 percent in the prior month. Prices increased at a softer pace for housing and utilities (3.24 percen from 3.78 percent), mostly due to a decrese in kerosene prices (-0.94 percent). On the other hand, cost of food and non-alcoholic beverages continued to rise (1.59 percent from 1.54 percent), namely some foodstuffs and cost of transport rebounded (0.16 percent from -0.06 percent).




Friday March 30 2018
Kenya Inflation Rate Edges Down to 4.18% in March
Kenya National Bureau of Statistics | Stefanie Moya | stefanie.moya@tradingeconomics.com

Consumer prices in Kenya advanced 4.18 percent year-on-year in March of 2018, slowing from a 4.46 percent increase in the prior month. It was the lowest inflation rate since May of 2013, as prices of food, transport and furnishing and household equipment eased.

Compared to March of 2017, prices rose at softer pace for food and non-alcoholic beverages (2.19 percent compared to 3.83 percent in February); transport (6.61 percent compared to 6.95 percent); furnishings and household equipment (4.25 percent compared to 4.29 percent) and restaurant and hotels (6.61 percent compared to 6.87 percent). On the other hand, cost increased further for housing and utilities (8.98 percent compared to 5.74 percent); clothing and footwear (3.85 percent compared to 3.81 percent) and miscellaneous goods and services (4.61 percent compared to 4.58 percent). Also, inflation was steady for communication (0.81 percent, the same as in February) and education (5.08 percent). 

On a monthly basis, consumer prices went up 1.39 percent, following a 1.36 percent rise in the previous month. Cost advanced faster for housing and utilities (3.78 percent compared to 0.41 percent in February), mainly due to higher prices of cooking fuels and electricity. Meanwhile, prices slowed for   food and non-alcoholic beverages (1.54 percent compared to 2.22 percent) and cost of transport fell (-0.06 percent compared 0.84 percent), due to a reduction in pump petrol prices.


Monday March 19 2018
Kenya Cuts Interest Rate by 50 Bps to 9.5%
Central Bank of Kenya | Stefanie Moya | stefanie.moya@tradingeconomics.com

The Central Bank of Kenya lowered its benchmark interest rate by 50 bps to 9.5 percent at its March 19th 2018 meeting, surprising markets who expected no change. It was the first rate cut since September of 2016. The Committee said there was scope for easing monetary policy as inflation expectations were well anchored within the Government target range and economic output was below potential.

Excerpts from the MPC Press Release

Month-on-month overall inflation fell to 4.5 percent in February 2018 from 4.8 percent in January 2018, thereby remaining within the Government target range. This decline reflected lower food prices particularly for Irish potatoes, cabbages, and sugar. The decrease in food prices outweighed the increase in fuel prices as a result of the rise in international oil prices. Non-food-non-fuel (NFNF) inflation remained below 5 percent indicating that demand-driven inflationary pressures are muted. Overall inflation is expected to be within the Government target range in the near term mainly due to expectations of contained food prices following improved weather conditions.

The MPC Private Sector Market Perception Survey conducted in March 2018 showed that inflation was expected to decline in the near term and reported stronger growth expectations for 2018. The Survey also showed almost unanimous optimism by the private sector for the domestic economic prospects in 2018. Respondents attributed their optimism to a stable macroeconomic environment, favourable weather conditions, improved business environment and investor confidence, continued public investment in infrastructure, expected direct flights to the U.S., and political stability.

The MPC noted that inflation expectations were well anchored within the Government target range, the increased optimism for growth prospects in the economy, and that economic output was below its potential level. Therefore, it concluded that there was scope for easing its monetary policy stance in order to support economic activity. Consequently, while noting the risk of perverse outcomes, the Committee decided to reduce the Central Bank Rate (CBR) to 9.50 percent from 10.00 percent. The MPC will closely monitor the impact of this change in its policy stance. Other developments in the domestic and global economy will also be observed, and the MPC stands ready to take additional measures as necessary.




Thursday March 01 2018
Kenya Inflation Rate Lowest Since 2013
Kenya National Bureau of Statistics | Stefanie Moya | stefanie.moya@tradingeconomics.com

Consumer prices in Kenya increased 4.46 percent year-on-year in February of 2018, easing from a 4.83 percent gain in the previous month. It was the lowest inflation rate since May of 2013 as prices of food, restaurant and hotels and education rose at a softer rate.

Compared to February of 2017, prices slowed for food and non-alcoholic beverages (3.83 percent from 4.71 percent in January); restaurant and hotels (6.87 percent from 7.03 percent) and education (5.08 percent from 5.38 percent). Meanwhile, cost advanced faster for transport (6.95 percent from 6.80 percent); clothing and footwear (3.81 percent from 3.61 percent);furnishings and household equipment (4.29 percent from 3.62 percent); miscellaneous goods and services (4.58 percent from 4.11 percent) and communication (0.81 percent from 0.59 percent). In addition, inflation was steady for housing and utilities (5.74 percent, the same as in January).

On a monthly basis, consumer prices went up 1.36 percent, after a 1.32 percent gain in the previous month. Prices rose further for food and non-alcoholic beverages (2.22 percent from 1.69 percent in January), namely some foodstuffs due to drought conditions. On the other hand, cost of housing and utilities eased (0.41 percent from 0.90 percent), mostly due to a fall in electricity prices. Also, prices of transport increased softer (0.84 percent from a 1.53 percent), mainly due to pump prices, petrol and diesel.


Thursday February 01 2018
Kenya Inflation Rate Rises at a Faster Pace
Kenya National Bureau of Statistics | Stefanie Moya | stefanie.moya@tradingeconomics.com

Consumer prices in Kenya rose 4.8 percent year-on-year in January of 2018, after a 4.5 percent gain in the previous month. Prices advanced at a faster pace after easing for five consecutive months, mostly due to food and housing and utilities.

Compared to January of 2017, cost increased at a faster pace for food and non-alcoholic beverages (4.71 percent compared to 4.68 percent in January); housing and utilities (5.74 percent compared to 5.13 percent); transport (6.80 percent compared to 5.82 percent); clothing and footwear (3.61 percent compared to 2.97 percent); furnishings and household equipment (3.62 percent compared to 3.26 percent); miscellaneous goods and services (4.11 percent compared to 3.56 percent); restaurant and hotels (7.03 percent compared to 6.61 percent); communication (0.59 percent compared to 0.53 percent) and education (5.38 percent compared to 3.21 percent).

On a monthly basis, consumer prices rose 1.32 percent, following a 0.54 percent increase in the previous month. Prices went up faster for food and non-alcoholic beverages (1.69 percent compared to 0.25 percent in December), namely some foodstuffs. In addition, cost advanced further for housing and utilities (0.90 percent compared to 0.27 percent), mainly due to higher prices of house of rents, kerosene and charcoal. In contrast, cost of transport slowed to 1.53 percent from a 2.44 percent, due to prices of diesel and petrol.


Monday January 22 2018
Kenya Keeps Interest Rate Steady at 10%
Central Bank of Kenya | Stefanie Moya | stefanie.moya@tradingeconomics.com

The central bank of Kenya kept its benchmark interest rate unchanged at 10 percent for the eighth consecutive meeting on January 22nd 2018, as widely expected. The Committee said the decision aims to anchor inflation expectations in the context of sustained macroeconomic stability, increased optimism on growth prospects, improving business environment, and continued strengthening of the global economy.

Excerpts from the MPC Press Release:

Month-on-month overall inflation fell to 4.5 percent in December 2017 from 4.7 percent in November 2017, thereby remaining within the Government target range. This decline was due to lower food prices reflecting improved supply of key food items, particularly cabbages, Irish potatoes, tomatoes, sugar, and maize flour. The decrease in food prices outweighed the increase in fuel and electricity prices, and the rise in transport costs during the festive period. Non-food-non-fuel (NFNF) inflation remained below 5 percent demonstrating that demand driven inflationary pressures remained muted. Although the rise in international oil prices is expected to exert moderate upward pressure, overall inflation is expected to remain well anchored and within the Government target range in the near term.

The MPC Private Sector Market Perception Survey conducted in January 2018 showed an upsurge in optimism by the private sector for the economic prospects in 2018. More than 90 percent of the respondents were optimistic about prospects for 2018, compared to 65 percent in November 2017. These respondents attributed their optimism to a stable macroeconomic environment, improved business environment and investor confidence, continued public investment in infrastructure, and expected commencement of direct flights to the U.S.

The MPC noted increased optimism for growth prospects in the economy and that inflation expectations are well anchored within the Government target range. The Committee noted that there was some room for accommodative monetary policy in the near term, as well as the risk of perverse outcomes. It concluded that there was need to further monitor and assess the impact of its policy actions. The MPC therefore decided to retain the Central Bank Rate (CBR) at 10.0 percent. The Committee continues to monitor the impact of the interest rate caps on the effective transmission of monetary policy. The CBK will continue to closely monitor developments in the global and domestic economy, and stands ready to take additional measures as necessary.


Friday December 29 2017
Kenya Inflation Rate Slows to 4.5% in December
Kenya National Bureau of Statistics | Stefanie Moya | stefanie.moya@tradingeconomics.com

Consumer prices in Kenya increased 4.5 percent year-on-year in December of 2017, easing from a 4.7 percent rise in the previous month. It was the lowest inflation rate since May 2013, as prices went up softer mainly for food and housing and utilities.

Compared to December of 2016, prices advanced at a softer pace for food and non-alcoholic beverages (4.68 percent compared to 5.79 percent in November); housing and utilities (5.13 percent compared to 5.27); furnishings and household equipment (3.26 percent compared to 3.02 percent) and  miscellaneous goods and services (3.56 percent compared to 3.61 percent). In contrast, cost rose faster for transport (5.82 percent compared to 3.81 percent); clothing and footwear (2.97 percent compared to 2.91 percent); restaurant and hotels (6.61 percent compared to 5.89 percent), communication (0.53 percent compared to 0.45 percent) and education (3.21 percent compared to 3.14 percent).

On a monthly basis, consumer prices went up 0.54 percent, after a 0.23 percent fall in the previous month. Prices rebounded for food and non-alcoholic beverages (0.25 percent compared to -1.33 percent), namely some foodstuffs. In addition, cost rose faster for transport (2.44 percent compared to 0.58 percent), mostly due to increases in prices of diesel and petrol and higher bus fares linked with December festivities. On the other hand, prices for housing utilities rose softer (0.27 percent compared to 1.74 percent), mostly due to higher prices of charcoal and kerosene. 


Friday December 01 2017
Kenya Inflation Rate Eases to 4.73%
Kenya National Bureau of Statistics | Marta Dubiel | marta.dubiel@tradingeconomics.com

Consumer prices in Kenya increased 4.73 percent year-on-year in November of 2017, easing from a 5.72 percent rise in the previous month and below market expectations of 5.5 percent gain. It was the lowest inflation rate since May 2013 amid a slowdown in food cost, mostly due to more favorable weather conditions. Higher prices were recorded for housing utilities, due to rising house rents, electricity and other cooking fuels.

Compared to November of 2016, prices rose at a softer pace for food and non-alcoholic beverages (5.79 percent from 8.47 percent); furnishings and household equipment (3.02 percent from 3.19 percent) and restaurant and hotels (5.89 percent from 5.96 percent). Also, cost of clothing and footwear slowed marginally to 2.91 percent compared to 2.92 percent. Prices rose at the same pace as in the previous month for education (3.14 percent). On the contrary, inflation went up for housing and utilities (5.27 from 3.58); transport (3.81 percent from 3.78 percent); miscellaneous goods and services (3.61 percent from 3.29 percent) and communication (0.45 percent from 0.40 percent).

On a monthly basis, consumer prices decreased 0.23 percent, less than a 0.63 percent fall in the previous month. Cost declined slower for food and non-alcoholic beverages (-1.33 percent from -1.78 percent), namely carrots, cabbages, tomatoes and spinach. Cost of transport slowed to 0.58 percent, compared to 0.86 percent, although prices of diesel increased to 4.12 percent from 2.22 percent. In contrast, cost of housing utilities increased to 1.74 percent from 0.47 percent, mostly due to higher prices of electricity (4.96 percent from 4.06 percent). 


Thursday November 23 2017
Kenya Leaves Monetary Policy Unchanged
Central Bank of Kenya | Stefanie Moya | stefanie.moya@tradingeconomics.com

The central bank of Kenya kept its benchmark interest rate unchanged at 10 percent for the seventh consecutive meeting on November 23rd 2017, as widely expected. Policymakers said the decision aims to continue to anchor inflation expectations in the context of favourable weather conditions, sustained macroeconomic stability, the conclusion of a prolonged election period, and an improvement in the global economy outlook.

Month-on-month overall inflation fell to 5.7 percent in October 2017 from 7.1 percent in September 2017, thereby remaining within the Government target range. This decline was largely due to lower food prices, particularly for cabbages and Irish potatoes. The decrease in food prices offset the increases in fuel and electricity prices in October. Non-food-non-fuel (NFNF) inflation remained below 5 percent, demonstrating that demand pressures are muted. Despite an increase in international oil prices which has exerted upward pressure on fuel prices, improved weather conditions and the extension of the maize subsidy are expected to continue supporting a further lowering in food prices and a decline in overall inflation in the near term.

The Committee noted that despite the effects of the drought experienced in the first half of 2017, and the prolonged elections in the second half of the year, economic growth has remained resilient. Growth has principally been supported by the services sector particularly the Micro, Small and Medium Enterprises (MSMEs). The economy is expected to grow by 5.1 percent in 2017, and to pick up strongly in the medium term supported by a stable macroeconomic environment.

The MPC Private Sector Market Perception Survey conducted in November 2017 showed that inflation was well anchored and is expected to decline in the short term. Respondents expected the exchange rate to remain stable supported by strong diaspora remittances and sufficient CBK foreign exchange reserves. The Survey also showed optimism in the economic prospects, with the conclusion of the elections, improved weather conditions, and continued public investment in infrastructure.

The Committee concluded that inflationary pressures in the economy were muted, and inflation was expected to continue to decline in the short term. The MPC therefore decided to retain the Central Bank Rate (CBR) at 10.0 percent. The MPC continues to monitor the impact of the interest rate caps on the effective transmission of monetary policy. The CBK will continue to closely monitor developments in the global and domestic economy, and stands ready to take additional measures as necessary.


Tuesday October 31 2017
Kenya Inflation Rate Slows to 5.72% in October
Kenya National Bureau of Statistics | Stefanie Moya | stefanie.moya@tradingeconomics.com

Consumer prices in Kenya increased 5.72 percent year-on-year in October of 2017, easing from a 7.06 percent rise in the previous month and below market expectations of 6.73 percent. It is the lowest inflation rate since May of 2016 amid a slowdown in food cost, mainly due to better weather conditions. On the other hand, higher electricity cost and a rise in pump prices of petrol and diesel pushed transport cost up.

Compared to October of 2016, prices rose less for food and non-alcoholic beverages (8.47 percent compared to 11.50 percent in September); clothing and footwear (2.92 percent compared to 3.47 percent) and miscellaneous goods and services (3.29 percent compared to 3.34 percent). On the other hand, cost increased more for housing and utilities (3.58 percent compared to 3.27 percent); furnishings and household equipment (3.19 percent compared to 2.95 percent); transport (3.78 percent compared to 3.29 percent); restaurant and hotels (5.96 percent compared to 5.16 percent); communication (0.40 percent compared to 0.36 percent) and education (3.14 percent compared to 3.04 percent). 

On a monthly basis, consumer prices decreased 0.63 percent, following a 0.57 percent fall in the previous month. Cost declined faster for food and non-alcoholic beverages (-1.78 percent compared to -1.28 percent in September), namely carrots, cabbages, oranges, onions and wheat. In contrast, cost of housing and utilities rebounded (0.47 percent compared to -0.16 percent), due to electricity (4.06 percent compared to -7.07 percent) and cost rose faster for transport (0.86 percent compared to 0.70 percent), as a result of an increase in prices of diesel (2.22 percent compared to 1.15 percent) and petrol (3.63 percent compared to 2.29 percent).