Month: July 2015

Kenya National Bureau of Statistics hereby releases Consumer Price Indices (CPI) and inflation rates for July, 2015. These numbers have been generated using data collected during the second and third weeks of the month under review. The prices were obtained from selected retail outlets in 25 data collection zones located in Nairobi and 13 other urban centers.

The CPI increased by 0.07 per cent from 160.46 in June 2015 to 160.57 in July 2015. The overall inflation rate stood at 6.62 per cent in July 2015. Download CPI and Inflation Rates for July 2015. 

The Kenya National Bureau of Statistics (KNBS) has benefited from a US$50 Million credit from the World Bank for implementation of statistical activities over the next five years from FY2015/2016 to FY 2019/2020.

This financial support complements implementation of the KNBS Strategic Plan 2013-2017.

The support has been provided through a financing arrangement known as the Kenya Statistics Program-for-Results (KSP-for-R). It is a credit line to the government that envisages production of comprehensive quality statistics for informed policy making and development in the country. 

The Kenya Statistics Program-for-Results is a financial arrangement between the Kenya Government and the World Bank. It is a culmination of successful negotiations between the Bank and the Government, represented by Planning Principal Secretary, Eng. Peter Mangiti, on Thursday 23rd July 2015 at the World Bank offices in Nairobi. Financing agreements will be signed by the two parties after final approval by the World Bank Board. This will pave way for implementation of the Program which takes effect before the end of this year.

Under the Program, the National Treasury will allocate financial resources to support the KNBS to implement its strategic plan as it endeavours towards becoming “A centre of excellence in statistics production and management”. Program implementation will be facilitated entirely through government budgetary, financial management and procurement systems. The Program is designed to help build internal institutional capacity during implementation of statistical activities.

Key Program-for-Results components include: financing and supporting the KNBS statistics plans and activities; disbursing finances upon achievement of agreed results; focusing on strengthening institutional capacity and national systems; providing assurance that financial resources are used appropriately and ensuring that environmental and social impacts are adequately addressed. This Program is structured to deliver results in filling data gaps by implementing an integrated survey program. Through the Program, KNBS will also improve the quality of key statistical products and processes and enhance its dissemination and data access practices. As the Program is implemented, critical components of KNBS management systems will also be reviewed and strengthened.

The Leading Economic Indicators for the month of May 2015 highlights trends in Consumer Price Indices (CPI) and inflation, interest rates, exchange rates, international trade, agriculture, energy, manufacturing, building and construction, tourism and transport.
Consumer Price Index (CPI) increased from 158.70 points in April 2015 to 159.98 points in May 2015. The overall rate of inflation contracted from 7.08 per cent to 6.87 per cent during the same period. In May 2015, the Kenyan Shilling depreciated against all the major currencies except for the Tanzanian shilling.
The average yield rate for the 91-day Treasury bills, which is a benchmark for the general trend of interest rates, declined to 8.26 per cent in May 2015. The inter-bank rates rose to 11.09 per cent during the period.
The Nairobi Securities Exchange 20 share index decreased from 5,091 points in April 2015 to 4,788 points in May 2015, while the total number of shares traded increased from 488 million to 684 million shares during the same period. The total value of NSE shares traded expanded from KSh 14.64 billion in April 2015 to KSh 21.33 billion in May 2015. Broad money supply (M3), a key indicator for monetary policy formulation expanded from KSh 2,464.48 billion in April 2015 to KSh 2,501.59 billion in May 2015. Gross Foreign Exchange Reserves increased from KSh 906.04 billion in March 2015 to KSh 923.84 billion in April 2015. Net Foreign Exchange Reserves expanded from KSh 463.84 billion to KSh 468.07 billion over the same period. Download  Leading Economic Indicators May 2015

The first quarter of 2015 experienced relative stability in key macroeconomic indicators. The Kenya Shilling strengthened significantly against all its major trading currencies but depreciated by 6.0 per cent against the US dollar. The current account worsened despite cheaper oil prices mainly due to a significant increase in the import bill against a contraction in export earnings. Interest on commercial bank loans declined by 8.7 per cent to average at 15.52 per cent during the quarter under review compared to an average of 17.00 per cent during the first quarter of 2014. The Central Bank Rate (CBR) was maintained at 8.5 per cent throughout the quarter.

Inflation eased downwards to an average of 5.8 per cent compared to 6.8 per cent recorded in the same quarter of 2014. The decline in inflation was mainly driven by a significant drop in oil prices during the review period. The decrease in oil prices also contributed to lower costs of electricity and transport services. Increased generation of geothermal electricity coupled with a reduction in thermal generation also contributed to lower cost of electricity during the review period. However, increased prices of vegetables and some key food products, in the first two months of the year, worked against the cost of living and led to a moderate level of inflation during the quarter.

The country’s economic performance improved to 4.9per cent during the first quarter of 2015 compared to a growth of 4.7 per cent realized in the same quarter of 2014. The growth was mainly supported by strong expansions of activities of Construction; Finance and Insurance; Information and Communication; Electricity and Water Supply; Wholesale and Retail Trade; and Transport and Storage. All the sectors of the economy recorded positive growths of varying magnitudes except the Hotels and Restaurant whose growth contracted. This was the fifth consecutive decline in growth which is mainly attributed to low hotel occupancy rates arising from insecurity concerns mainly by international visitors. Download First Quarter 2015 Quarterly Gross Domestic Product and Balance of Payments