Kenya's central bank just dropped interest rates by 25 basis points to hit 9 percent because it wants businesses borrowing more cash to juice the economy. The Monetary Policy Committee thinks global growth will plateau around 3.1 percent next year, thanks to tariff drama and geopolitical mess in the Middle East plus Europe, but Kenya's inflation chilled out at 4.5 percent after food prices like sugar and maize flour stopped climbing.
The country pulled 4.9 percent GDP growth during the first half of the year from solid industrial output and services performance, and officials project hitting 5.5 percent by next year if weather patterns cooperate. The current account deficit got fatter at 2.2 percent of GDP because imports for manufacturing gear went up, but exports jumped 6.7 percent from horticulture and coffee demand.
Banks stay healthy with non-performing loans shrinking slightly, and private sector credit expanded 6.3 percent after lenders eased up on rates. Foreign reserves cover over five months of imports.
The country pulled 4.9 percent GDP growth during the first half of the year from solid industrial output and services performance, and officials project hitting 5.5 percent by next year if weather patterns cooperate. The current account deficit got fatter at 2.2 percent of GDP because imports for manufacturing gear went up, but exports jumped 6.7 percent from horticulture and coffee demand.
Banks stay healthy with non-performing loans shrinking slightly, and private sector credit expanded 6.3 percent after lenders eased up on rates. Foreign reserves cover over five months of imports.
