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Exchange rates

Previous week rates: 20/05/2016                                              Current week rates: 27/05/2016

Country Currency Buying Selling Country Currency Buying Selling
US USD 100.59 100.78 US USD 100.56 100.61
UK GBP 146.77 147.10 UK GBP 147.80 148.11
EUROPE EUR 112.69 112.93 EUROPE EUR 112.67 112.91
S.AFRICA ZAR 6.32 6.33 S.AFRICA ZAR 6.46 6.48
JAPAN JPY 0.9155 .9175 JAPAN JPY .9166 .9187
AUSTRALIA AUD 72.45 72.62 AUSTRALIA AUD 72.68 72.84
CANADA CAD 76.55 76.73 CANADA CAD 77.65 77.83
INDIA INR 1.4894 1.4926 INDIA INR 1.5014 1.5047

Source: Central Bank of Kenya (CBK)

Kenyan shilling held steady against the dollar as end month demand kicked in. The shilling is expected to be under pressure in the coming week as importers cover end month payments. Central Bank of Kenya may intervene in the local market to support the shilling if it falls past the 101.00 psychological levels.

On the international front, US dollar advanced against its major peers after hawkish comments from FED chair Janet Yellen. The comments reiterated market expectations of a June rate hike if US economy and labor market continues to strengthen.

US nonfarm payrolls data and manufacturing PMI, European Central Bank rate decision, European Union flash CPI and China’s manufacturing PMI are some of the major economic releases slated for the coming week.

Daily Economic Report


Key benchmark interest rates

Interest rate Current Previous Change Direction
Central Bank Rate 10.5 11.5 -1.000%
Interbank lending rate 3.0672 5.4431 -2.375%
Month on month inflation rate 5.27 5.27 0.000%
91 Days Treasury Bill 7.711 7.998 -0.287%
182 Days Treasury Bill 9.999 10.137 -0.138%
364 Days Treasury Bill 11.293 11.570 -0.277%

Source: Central Bank of Kenya (CBK)

CBK monetary policy committee (MPC) eased the CBR rate from 11.50% to 10.50% as inflation of 5.27%remained in CBK target range of 5.00% to 7.00%. This indicates that the MPC expect commercial banks lending rates to ease in the coming months. This may not last for long as inflation may edge up as oil prices in the global market rises. The lag in policy announcement and implementation in the market may also hinder customers from benefiting from decreased CBR rate.

Interbank lending rate fell from 5.4431% to 3.0672%. Volume traded increased from 1.45 billion to 8.03 billion. There was minimal activity in the interbank market during the week as volumes traded remained below 10 billion shillings.

91 day T-bill eased by 0.287% from 7.998% previous week rate to 7.711%. CBK offered a total of Kshs 4 billion. Bids amounted to Kshs 10.212 billion of which 7.284 billion was accepted. Volume on bids received increased week on week basis. High liquidity in the local market caused the 91 day T-bill to ease further. The rate may revert upwards as it is currently trading at its lowest level in one year.

182 day T-bill declined by 0.138% from 10.137% previous week rate to 9.999%. CBK offered a total of Kshs 6 billion. Bids amounted to Kshs 10.543 billion of which 5.402 billion was accepted.

364 day T-bill eased by 0.277% from 11.570% previous week rate to 11.293%. CBK offered a total of Kshs 6 billion. Bids amounted to Kshs 16.092 billion of which 9.168 billion was accepted. The increased bidding and reduced rate of the 364 day T-bill may have been fueled by the high liquidity in the local market due to investors missing out in last week’s bond auction.

The graphs below depict visual movement of the interbank and T-bill rates.

interlending banking rate

treasury bill graph




Capital Markets


Top Gainers Losers
Company Price % Change Company Price % Change
ADSS 1.40 7.69 TPSE 22.25 4.30
MASH 9.20 6.36 BRIT 14.75 4.22
CFC 90.00 4.65 FAHR 19.05 2.56
EGAD 23.00 4.55 SCAN 21.00 2.33
NBK 10.50 4.48 LKL 5.40 1.82

Source: Nairobi Securities Exchange (NSE)


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Posted by Timothy II Aperit

True believer in numbers. Statistics never lie. Bsc Financial Engineering MBA Finance ACCA