Kenya

Kenya's central bank left its Central Bank Rate (CBR) steady at 10.50 percent, as forecast, saying inflation is expected to remain within the target range in the short term although the recent increase in fuel tax is expected to exert temporary upward pressure on consumer prices despite moderate demand pressure.

The Kenya shilling has been downgraded by international rating agency Fitch due to the county’s high exposure to exchange rate movements implying higher cost of borrowing from external markets.

Kenya’s economy will expand by 5.7 per cent this year buoyed by a stable political environment, higher infrastructural spending, increased foreign investments and consumption by the growing middle, class rating agency Moody’s has said.

German investment fund DEG has bought an additional 5.4 per cent stake in Nairobi-based reinsurance company Zep–Re for Sh1.4 billion.