Kenya's central bank lowered its benchmark interest rate for the second time in a row, saying there is room for "further accommodative monetary policy to support economic activity" as inflation expectations remain well anchored within the target range, the economy is continuing to operate below its potential level and fiscal policy is being tightened.

A French private equity fund, Amethis Finance, is set to acquire about a 30 percent stake in local retail chain Naivas Limited in a deal estimated to be worth billions of shilling. The transaction is set to further boost Kenya’s investment profile.

Banks and businesses expect inflation to stick in the upper band of the Central Bank of Kenya’s (CBK) preferred range of five per cent plus or minus 2.5 percentage points, reflecting higher input costs by producers, higher taxes and possible maize shortage.

The competition watchdog has approved the planned merger of Airtel Kenya and Telkom Kenya.