Kenyan Shilling sheds 0.10% against the US Dollar

Secondary Market: Trading in the secondary market substantially as bond turnover contracted by 73% to KES 338.66 million with a total number of 54 bonds deals transacted, however, majority of transactions were odd lots.

Inflation in April rose to 7.08% on account of a rise in food costs which increased by 13.42%, the strongest growth since June of 2012. The MPC meeting takes place today and tomorrow where we expect the committee to retain CBR at 8.50%

Money Market: The interbank rate held substantially high, above 10% as liquidity constraints added upward pressure. The Kenyan Shilling (KES) shed 0.10% against the US Dollar (USD) to 94.77 although end month pressures began to ebb away.

Upcoming Auctions

• 6th May 2015 – KES 3.0Bn 182 & KES 4.0BN 364-day T-bills

• 7th May 2015 – KES 1 Bn 91 day T-bills