Leading Economic Indicator September 2017

The Leading Economic Indicators 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) decreased from 184.72 points in August 2017 to 183.66 points in September 2017. The overall rate of inflation dropped from 8.04 per cent to 7.06 per cent during
the same period. In August 2017, the Kenyan Shilling appreciated against the major trading currencies except for the Euro, South African Rand, the Euro, and the Sterling Pound.

The average yield rate for the 91-day Treasury bills, which is a benchmark for the general trend of interest rates, decreased from 8.22 per cent in July 2017 to 8.19 per cent in August 2017 while the inter-bank rate rose from 6.84 per cent in July 2017to 8.12 per cent in August 2017.

The Nairobi Securities Exchange (NSE) 20 share index decreased from 4,027 points in August 2017 to 3,751 points in September 2017, while the total number of shares traded dropped from 640 million shares to 557 million shares during the same period. The total value of NSE shares traded increased from KSh 16.0 billion in August 2017 to KSh 16.2 billion in September 2017.

Broad money supply (M3), a key indicator for monetary policy formulation, increased from KSh 2,957.94 billion in July 2017 to KSh 2,966.59 billion in August 2017. Gross Foreign Exchange Reserves expanded from KSh 1,075.90 billion in August 2017 to KSh 1,085.54 billion in September 2017. Net Foreign Exchange Reserves increased from KSh 609.02 billion in July 2017 to KSh 617.64 billion in September 2017.