Kenya’s GDP experienced a significant upswing, with Q3 2023’s 5.9% growth marking the highest quarterly growth since Q1 2022.

The Shilling took yet another hit in Q4, depreciating by 5.65%, 10.66% and 11.40% against the Dollar, the Sterling Pound and the Euro respectively.

Foreign Exchange Reserves
Foreign exchange reserves dipped by 15.25% to close at USD 6,612 million (3.5 months of import cover) in 2023.

Diaspora Remittances
Remittances soared to record highs in 2023, with a total inflow of USD 4,190 million compared to USD 4,028 million in 2022.

After peaking at 9.1% in 2022, inflation steadily declined throughout 2023, culminating in the year’s lowest average rate of 6.8% in Q4.

The average inter-bank rate significantly increased by 99.97% from 4.91% in 2022 to 9.82% in 2023.

Kenya’s private sector faced a year of contraction in 2023, as evidenced by a sinking Stanbic Bank Kenya Purchasing Managers’ Index (PMI) that averaged 48.1, down from 49.2 in 2022.

Treasury Bills (T-bills)
T-bills were over-subscribed during the year, with the overall subscription rate increasing to 120.01%, up from 87.78% recorded in the previous year.

Treasury Bonds
The primary bond market in 2023 saw a strategic shift by CBK, with a 22.30% decrease in the targeted issuance from Kshs 889.30 billion in 2022 to Kshs 691 billion.

Despite rising global interest rates in 2023, Kenya’s Eurobonds saw an average yield decline of 0.45% compared to increases of 4.77% in 2022 and 1.7% in 2021.

The stock market suffered a significant downturn in 2023, with major indices contracting sharply.

Please click the button below to access and download the full article.

Get future reports

Please provide your details below to get future reports:

Reports subscription