Foreign Exchange Reserves

The usable foreign exchange reserves stood at USD 6,711 million (3.59 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 153.74, KES 195.00 and KES 167.77 respectively. The observed depreciation against the Dollar is attributed to a high demand from energy and commodity importers.

CurrencyYTD ChangeW-o-W Change
Sterling Pound31.11%1.16%


Liquidity in the money markets tightened, with the average inter-bank rate increasing from 10.40% to 11.47%, as tax remittances more than offset government payments. Open market operations remained active.

LiquidityWeek (previous)Week (ending)
Interbank rate10.40%11.47%
Interbank volume (billion)10.2322.97
Commercial banks’ excess reserves (billion)25.0017.90

Fixed Income


T-Bills were under-subscribed during the week, with the overall subscription rate decreasing to 72.26%, down from 156.90% performance recorded in the previous week. The 91-day T-Bill received the highest subscription rate at 344.79% while the 182-day T-Bill and 364-day T-Bill had a subscription rate of 29.22% and 6.29% respectively. The acceptance rate increased by 4.50% to close the week at 98.51%.


In the secondary bond market, there was a higher demand for the week’s bond offers. Bond turnover increased by 61.48% from KES 12.95 billion in the previous week to KES 20.91 billion. Total bond deals decreased by 23.15% from 596 in the previous week to 458.

In the primary bond market, CBK issued a new 3-year bond FXD1/2024/03 and re-opened FXD1/2023/05 through a tap sale, targeting to raise KES 35.0 billion. The coupon rate for the reopened bond is 16.84%, while that of the new issue will be market-determined. The sale runs from 14/12/2023 to 10/01/2024.


In the international market, yields on Kenya’s Eurobonds decreased by an average 0.66% compared to the previous week, 0.86% month-to-date and 0.09% year-to-date. The yields on the 10-year Eurobonds for Angola declined while that of Zambia increased. Below is a summary analysis of performance for individual bonds.

BondYTD ChangeM-o-M ChangeW-o-W Change
2014 10-Year Issue0.94%-0.53%-0.51%
2018 10-Year Issue-0.28%-1.11%-0.79%
2018 30-Year Issue0.05%-0.28%-0.11%
2019 7-Year Issue-0.72%-1.60%-1.30%
2019 12-Year Issue-0.48%-0.89%-0.70%
2021 13-Year Issue-0.03%-0.76%-0.54%

NASI, NSE 20, NSE 25 and NSE 10 settled 2.07%, 1.41%, 1.93% and 2.02% lower compared to the previous week, bringing the year-to-date performance to -27.75%, -10.95%, -24.30% and -8.47% respectively. Market capitalization also lost 2.06% from the previous week to close at KES 1.44 trillion, recording a year-to-date decline of -27.55%. The performance was driven by losses recorded by large-cap stocks such as Equity, Standard Chartered, Safaricom and Stanbic of 5.80%, 3.73%, 3.09% and 3.00%. These were however mitigated by the gain recorded by other large-cap stocks such as NCBA of 4.47%.

The Banking sector had shares worth KES 96M transacted which accounted for 19.95% of the week’s traded value, the Manufacturing and Allied sector had shares worth KES 11M transacted which represented 2.39% and Safaricom, with shares worth KES 24M transacted represented 72.63% of the week’s traded value.

Top Gainers and Losers in the Equities Markets

Top GainersYTD ChangeW-o-W
Home Africa-14.71%7.41%
TP Serena6.15%6.15%
Car General-48.98%4.17%
LosersYTD ChangeW-o-W

Alternative Investments

LosersWeek (previous)Week (ending)% Change
Derivatives Turnover (million)0.830.24-71.00%
Derivatives Contracts10.006.00-40.00%
I-REIT Turnover (million)0.100.22118.43%
I-REIT deals11.0015.0036.36%

Global and Regional Markets

Global MarketsYTD ChangeW-o-W
S&P 50023.41%2.49%
Dow Jones Industrial Average (DJI)12.60%2.93%
FTSE 100 (FTSE)0.29%0.29%
STOXX Europe 6009.77%0.92%
Shanghai Composite (SSEC)-5.58%-0.91%
MSCI Emerging Markets Index3.98%2.65%
MSCI World Index20.19%2.59%
Continental MarketsYTD ChangeW-o-W
FTSE ASEA Pan African Index3.88%0.26%
JSE All Share1.16%2.20%
NSE All Share (NGSE)40.30%1.18%
DSEI (Tanzania)-8.07%-0.24%
ALSIUG (Uganda)-27.29%-0.83%

The US stock market closed out the week in the green zone, fueled by unwavering optimism for rate cuts in 2024. Despite a cautious note from the Fed Chair, investors remain confident that a dovish pivot is coming, potentially unlocking a new era of economic growth and boosting corporate earnings.

The European stock markets closed the week on an upward trajectory, as investors optimism that major central banks will start cutting interest rates next year, especially the Fed.

Asian stock markets ended the week in the red, weighed down by concerns over China’s sluggish economy and deepening disinflationary trend, as evidenced by recent data showing falling prices.

On the global commodities markets, Crude Oil WTI and ICE Brent Crude closed the week 0.24% and 0.94% higher at $71.43 and $76.55 respectively. Gold futures prices settled 1.87% higher at $2,035.70.

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 December 2023 to 14th January 2023. The pump price of super petrol, Diesel and Kerosene decreased to KES 212.36 per litre, KES 201.47 per litre and KES 217.36 per litre respectively, offering some relief to households during the festive season.
  • November revenues reached 879.72 billion, marking a remarkable 23.13% increase from the previous month and but below the monthly prorated target by 17.88%. Expenses exceeded revenue collections by KES 303 billion, signalling a fiscal deficit of 34.50% which was financed through external and internal borrowing by 25% and 75% respectively.
  • The World Bank approved a $150 million project, the Kenya Jobs and Economic Transformation Project (KJET), designed to empower 6,800 women-led businesses and create 45,000 new or improved jobs across the country. KJET will fuel the growth of micro, small and medium enterprises (MSMEs) by strengthening their value chains, opening doors to new markets and upgrading their skills and capacity. This potent mix will unlock their growth potential, leading to increased hiring and higher worker productivity, ultimately benefiting both businesses and workers.
  • The European Investment Bank (EIB) and the Central Bank of Kenya (CBK) have joined forces to launch a new climate finance initiative in East Africa. This initiative will address the challenges that currently hinder commercial banks’ involvement in climate finance and help Kenyan financial institutions embrace climate finance best practices. It will also develop a green taxonomy, support the CBK in incorporating climate risk into the regulatory framework and catalyze new funding for green projects.
  • Eurozone inflation decreased to 2.4% year-on-year in November, marking its lowest level since July 2021 and defying market expectations of 2.7%. Core inflation, which excludes volatile food and energy prices, also eased to 3.6%, its lowest point since April 2022. Energy costs continued to trend downward, falling 11.5% year-on-year, dragging down inflation across all categories. Services saw prices decrease to 4.0% from 4.6%, food, alcohol and tobacco eased to 6.9% from 7.4%, and non-energy industrial goods cooled slightly to 2.9% from 3.5%. Additionally, November saw a monthly price drop of 0.5%, the largest since January 2020.
  • The US Q3 GDP revised higher to 5.2%, exceeding forecasts of 5% and marking the strongest pace since Q4 2021. Non-residential investment jumped from -0.1% to 1.3%, due to upward revisions and a 6.9% increase in structures. Residential investment recorded its first gain in nearly two years, rising 6.2%. Consumer spending, though slightly slowing from its initial 4% estimate to 3.6%, remained robust, particularly in goods purchases. Trade also contributed positively, with exports rising 6% and imports moderating to 5.2%.
  • The British economy narrowly dodged a recession in Q3, with its GDP stagnating at 0%, exceeding forecasts of a 0.1% decline. Construction ticked up 0.1%, while services fell slightly, dragged down by real estate and transportation. On the spending side, a rise in net trade offset declines in business investment of -4.2% and household spending of -0.4%. Compared to the same quarter last year, GDP grew by 0.6%. The Bank of England expects a meager 0.1% rise in Q4, as high inflation and interest rates continue to weigh.

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