Coming soon : Inflation season

Howdy! It's Brian again.

In today's edition of ‘The Daily Brief’, the Central Bank of Kenya predicts that weather conditions will drive inflation in the coming months.

The banking lobby promises to follow the CBK directive to cut rates before the month ends.

And…Financial Analysts recommend the purchase of Safaricom's shares. We explain why…

These…and more stories…

ECONOMY  

What is likely to cause the incoming inflation?

The Central Bank of Kenya (CBK) predicts that weather will be a major factor in determining food prices in the coming months. The prices of kales/sukuma wiki, traditional vegetables, cabbages, spinach, tomatoes and potatoes are expected to be higher in February 2025 compared to January 2025, some reflecting seasonality factors while others reflect impact of inadequate October-December 2024 rainfall.

The prices of sugar and cooking oil are likely to increase slightly in February 2025, reflecting developments in the global market where prices of these items have edged up in the recent past.

In this article, we explain why many people expect inflation to rise in the next few months…

Today's Poll

Yesterday's Poll Results

Do you think CBK's pressure on banks to cut interest rates will eventually pay off, or will it backfire?

🟩🟩🟩🟩🟩🟩 Yes, it will work (56.10%)

🟨🟨🟨🟨⬜️⬜️ No, it will backfire (43.90%)

BANKING  

“We shall cut interest rates before February ends” — Bankers 

The Kenya Bankers Association (KBA) is projecting that all banks will reduce interest rates on loans by the end of this month. On Wednesday KBA leadership committed that the interest rates are coming down and that it is immediate. On February 5, CBK cut the base lending to 10.75%, the fourth cut in a row, saying it wanted to do more to support lending and boost economic growth. Only three lenders-KCB Group, Equity, and Co-operative Bank-have cut rates since the latest CBK review. The regulator said it would begin conducting on-site inspections of interest rates.

However, bankers have more demands for the CBK. Read about them in this article…

COMPANIES  

Hope for Safaricom's shares - Analysts 

Analysts at the Standard Investment Bank (SIB) are optimistic about Safaricom’s equities despite piling concerns and potential disruptions in Kenya’s telecommunications scene. Financial analysts believe that the telco’s profitable run remains strong after posting a KSh 47.5 billion profit in its Kenyan market – according to last November’s half-year results. In a report, the analysts project that with the rising uptake of smartphones in the Kenyan market, Safaricom’s data revenues are bound to keep soaring- surpassing voice and SMS revenues, which are headed for the market maturity phase.

More details in this article

CAPITAL MARKETS

StanChart, HF Group join MSCI Index 

Morgan Stanley Capital International (MSCI) has added two Nairobi Securities Exchange (NSE) listed firms to their key index, increasing the stocks visibility to foreign investors. Standard Chartered Bank Kenya was added to the MSCI Frontier Markets Index while HF Group was added to the MSCI Frontier Markets Small Cap Index. The changes will take place after the markets close on 28th February, with no Kenyan company deleted from the MSCI Index in the review. The addition brings the total number of Kenyan companies in the Small Cap index to 8 with the NSE expected to benefit from increased exposure, offering more options in frontier markets.

More details in this article…

News Desk 

Opinion and Commentary 

Video of the Day 

In this episode of Her Leadership, we sit down with Wanjiru Mari, the CEO and Founder of Coffee Lab Nairobi, a trailblazer in Kenya’s coffee industry

Adieu!