Medium Term Effect of Brexit on Kenyan Economy –Central Bank
By David Indeje / Published July 27, 2016 | 5:10 am
The Kenyan economy has not been affected by the Brexit bug as compared to the other African and European markets according to the Central Bank of Kenya.
“We have not been affected by Brexit when we look at the foreign exchange and our trade; no fundamental changes have been felt. However, Kenya might feel its impact in the medium term,” said the CBK Governor, Dr. Patrick Njoroge at a media briefing on Tuesday
a day after the bank left interest rates unchanged
“Investors will take a cautionary approach; however, the immediate impact will be on the Foreign Direct Investment (FDI) it the impact begins to take place,” he added.
Njoroge said inflation in Kenya is under control despite a rise in agriculture products in the month of June and increases in the fuel tax. Inflation rose to 5.8 percent in June from 5 percent in May.
“The MPC is quite comfortable with the dynamics,” he said.
In the financial sector, Njoroge said, “There is adequate liquidity in the system, but we are not declaring mission accomplished.”
In the briefing, he reiterated that there was need to improve and enhance capacity in the supervision of the sector, ‘however, it has not been done consistently,’ he said.
Going forward, to improve bank supervision: They are investing in people to carry out the supervision. He cited that already 15 people have been identified; they are improving on the systems to help in forensic auditing and the process.
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