Foreign Exchange Reserves

The usable foreign exchange reserves stood at USD 6,829 million (3.70 months of import cover). This falls short of CBK’s statutory requirement to endeavour to maintain at least 4.0 months of import cover as well as the EAC region’s convergence criteria of 4.5 months of import cover.


The Kenyan Shilling depreciated against the Dollar, the Sterling Pound and the Euro to exchange at KES 159.85, KES 203.24 and KES 174.98 respectively. The observed depreciation against the Dollar is attributed to a high demand from energy and commodity importers.

CurrencyYTD ChangeW-o-W Change
Sterling Pound1.70%1.52%


Liquidity in the money markets slightly tightened, with the average inter-bank rate increasing from 13.42% to 13.44%, as tax remittances more than offset government payments. Open market operations remained active.

LiquidityWeek (previous)Week (ending)
Interbank rate13.42%13.44%
Interbank volume (billion)17.1611.83
Commercial banks’ excess reserves (billion)14.2014.60

Fixed Income


T-Bills remained over-subscribed during the week, with the overall subscription rate increasing to 241.54%, down from 134.50% performance recorded in the previous week. The 91-day T-Bill received the highest subscription rate at 1,114.40% while the 182-day T-Bill and 364-day T-Bill had a subscription rate of 101.02% and 32.90% respectively. The acceptance rate decreased by 17.96% to close the week at 79.29%.


In the secondary bond market, there was a higher demand for the week’s bond offers. Bond turnover increased by 1,458.27%, from KES 0.65 billion in the previous week to KES 10.09 billion. Total bond deals increased by 86.12% from 209 in the previous week to 389.

In the primary bond market, CBK released auction results for the new 3-year bond FXD1/2024/003 and re-opened 5-year FXD1/2023/005 which sought to raise KES 35.0 billion. The issues received bids worth KES 37.15 billion, representing a subscription rate of 106.15%. Of these, KES 25.02 billion worth of bids were accepted at a weighted average rate of 18.39% and 18.77% respectively.


In the international market, yields on Kenya’s Eurobonds decreased by an average 0.33% compared to the previous week, but increased 0.26% month-to-date and 0.26% year-to-date. The yields on the 10-year Eurobonds for Angola and Zambia increased. Below is a summary analysis of performance for individual bonds.

BondYTD ChangeM-o-M ChangeW-o-W Change
2014 10-Year Issue0.51%0.51%-0.85%
2018 10-Year Issue0.22%0.22%-0.27%
2018 30-Year Issue0.14%0.14%-0.07%
2019 7-Year Issue0.44%0.44%-0.36%
2019 12-Year Issue0.11%0.11%-0.24%
2021 13-Year Issue0.13%0.13%-0.19%

NASI settled 0.27% higher while NSE 20, NSE 25 and NSE 10 settled 0.29%, 0.32% and 0.29% lower compared to the previous week, bringing the year-to-date performance to 0.90%, 0.35%, 1.23% and 1.21% respectively. Market capitalization also gained 0.27% from the previous week to close at KES 1.45 trillion, recording a year-to-date increase of 0.90%. The performance was driven by the gain recorded by Safaricom of 2.21%. This was however weighed down by the losses recorded by other large-cap stocks such as ABSA, KCB and EABL of 3.00%, 2.44% and 2.04%.

The Banking sector had shares worth KES 202.8M transacted which accounted for 29.66% of the week’s traded value, Manufacturing and Allied sector had shares worth KES 18.6M transacted which represented 2.72% and Safaricom, with shares worth KES 248.9M transacted represented 36.39% of the week’s traded value.

Top Gainers and Losers in the Equities Markets

Top GainersYTD ChangeW-o-W
LosersYTD ChangeW-o-W
EA Cables-10.20%-11.11%
Home Africa-10.26%-10.26%

Alternative Investments

LosersWeek (previous)Week (ending)% Change
Derivatives Turnover (million)0.400.4617.22%
Derivatives Contracts11.0016.0045.45%
I-REIT Turnover (million)0.910.20116.00%
I-REIT deals22.0027.0022.73%

Global and Regional Markets

Global MarketsYTD ChangeW-o-W
S&P 5000.86%1.84%
Dow Jones Industrial Average (DJI)-0.32%0.34%
FTSE 100 (FTSE)-1.25%-0.84%
STOXX Europe 600-0.37%0.08%
Shanghai Composite (SSEC)-2.71%-1.61
MSCI Emerging Markets Index-2.77%-0.58%
MSCI World Index-0.03%1.53%
Continental MarketsYTD ChangeW-o-W
FTSE ASEA Pan African Index1.13%-2.19%
JSE All Share-2.15%-0.46%
NSE All Share (NGSE)9.28%4.24%
DSEI (Tanzania)-0.39%-0.75%
ALSIUG (Uganda)1.37%-0.49%

The US stock market closed the week in the green zone, as investors assessed the cooler-than-expected producer inflation data that fueled hopes for an early Fed rate cut.

The European stock market was volatile during the week, as investors digested the higher-than-expected U.S. consumer price index (CPI) data, which dashed hopes for a near-term rate cut. However, the technology and retail sectors led with gains, fueled by earnings optimism and strong holiday sales.

Asian stock markets ended the week in the red, mainly weighed down by concerns over a weakening Chinese economy. China’s Producer Price Index (PPI) inflation in China shrank for the 15th consecutive month in December, further fueling investors’ concerns.

Week’s Highlights

  • The Energy and Petroleum Regulatory Authority (EPRA) released its latest monthly statement on the maximum retail prices of petroleum products, effective from 15th January 2024 to 14th February 2024. The pump price of super petrol decreased by KES 5.00 to KES 207.36 per litre, diesel by KES 5.00 to KES 196.47 per litre and kerosene by KES 4.82 to KES 194.23 per litre, bringing much-needed relief to Kenyan households.
  • The government revised upwards NSSF deductions. Tier I deductions will rise from KES 360 to KES 420, due to a revised lower limit of KES 7,000 for employee contributions and a matching KES 420 from employers. Tier II will see a more substantial increase, from KES 720 to KES 1,740, thanks to a revised upper limit equal to the national average wage. However, a sigh of relief: Tier II calculations will still use the 2013/14 national average wage, preventing an even steeper hike. Overall, total employee contributions will increase from KES 2,160 to KES 3,180, a significant change for both employees and employers.
  • The IMF projected Kenya’s GDP to grow by 5.3% in 2024, owing to strong government efforts, rising foreign direct investment and a robust agricultural sector. This performance surpasses the estimated 4.0% growth for sub-Saharan Africa, as a whole. The region is currently rebounding from a weak 3.3% growth rate last year.
  • The Sacco Societies Regulatory Authority (SASRA) implemented a new levy on cash deposits held by non-withdrawable deposit-taking Saccos (NWDTs) operating back office service activities (BOSA), aiming to enhance financial stability and support regulatory oversight. In departure from its initial proposal of 0.165%, this levy, taking effect in January 2024, starts at 0.10% of non-withdrawable deposits, gradually increasing to 0.15% by 2027. Notably, this rate remains significantly lower than the 1.75% Sacco Deposit levy currently charged to larger deposit-taking Saccos (DTs) offering front-office services.
  • The Capital Markets Authority (CMA) granted Frictionless Enterprises access to its regulatory sandbox, paving way for the pilot testing of their innovative Power IO app. Developed in collaboration with Sanlam, the app empowers employees to invest 5–15% of their monthly earnings directly into secure money market funds through a convenient mobile interface. Power IO’s pilot marks a leap in mobile financial solutions, bringing convenience and accessibility to investing and aligning with Kenya’s growing focus on financial inclusion.
  • US inflation increased to 3.4% in December from 3.1% in November 2023, defying market forecasts of 3.2%. This was primarily driven by a slower decline in energy prices compared to previous months. Gasoline prices dipped 1.9%, utility gas decreased 13.8% and fuel oil fell 14.7%, all marking slower drops than November. Meanwhile, food prices increased by 2.7%, shelter by 6.2%, and transportation services by 9.7%. Core inflation, excluding volatile food and energy costs, eased slightly to 3.9% from 4% in November.
  • The British economy grew 0.3% month-over-month in November 2023, up from a 0.3% decline in October and above the market forecast of 0.2% rise. Services led the charge with a 0.4% increase, driven by a 1.5% surge in information and communication, particularly the publishing of computer games and telecommunications. Wholesale and retail trade grew by 0.5%, and professional, scientific and technical activities were up by 0.6%. However, the financial, insurance, construction and education sectors decreased by 0.2% each. Despite this positive November figure, the UK GDP declined 0.2% for the three months to November.
  • China’s inflation fell 0.3% year-on-year in December 2023, marking the third consecutive month of decline and the longest streak since 2009. The decline, though slower than the previous month’s -0.5%, missed market forecasts of -0.4%. Food prices moderated their decline to -3.7% from -4.2% in November. However, non-food inflation edged higher to 0.5% from 0.4%, driven by rising costs in clothing, housing, health and education. Notably, monthly CPI increased by 0.1%, the first increase in three months.

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