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Central Bank of Kenya (CBK) Weekly Bulletin indicates that Kenya’s inflation increased to 4.1 percent in April 2025 from 3.6 percent in March, mainly due to a surge in processed food and energy prices.
CBK said that core inflation also went up to 2.5 percent from 2.2 percent, while non-core inflation, which includes volatile foods such as fuel, rose to 8.4 percent from 7.4 percent.
The Kenyan Shilling was fairly stable against major world currencies, quoting at Sh 129.34 to the US dollar on April 30.
CBK noted that foreign exchange reserves stood at USD 9.75 billion equivalent to 4.4 months of import cover that met the statutory requirement of the CBK.
In the money market, liquidity was satisfactory with commercial banks maintaining KSh 7.7 billion excess reserves.
The interbank rate declined to 9.94 percent as volumes of interbank activity dropped to 30 from 38 the previous week.
In the meantime, the Treasury bond auction held on April 30 posted high investor demand, with bids amounting to KSh 18.4 billion against an offer of KSh 24.0 billion, which amounted to a performance rate of 76.6 percent.
CBK said long-term bonds received increased interest, with KSh 57.1 billion bids for a KSh 50.0 billion recording an impressive 114.2 percent performance.
Equities at the Nairobi Securities Exchange (NSE) registered negligible losses showing how the NSE 20, NSE 25, and NASI indices declined to 0.76 percent, 0.45 percent, and 0.05 percent respectively.
CBK indicated that market capitalization, volumes traded, and turnover were all registered negligible declines.
Meanwhile, bond market turnover were reduced by 0.8 percent, while Kenya’s Eurobonds yields rose by an average of 2.8 basis points.
Yields on Angola and Côte d’Ivoire Eurobonds also rose.
Globally, weakening inflation in Europe and the US signaled firming economic conditions.
CBK shows how US inflation measured by the Personal Consumption Expenditures (PCE) index, fell to 2.4 percent in March from 2.8 percent in February.
However, the US economy fell by 0.3 percent in Q1 2025.
Crude oil prices fell in the week with Murban oil falling to USD 62.34 a barrel on May 1 from USD 67.34 in the previous week as a result of an improved supply situation and easing geopolitical tensions.
