Business
Kenya Moves To Lower Inflation
Kenya’s central bank will focus on lowering inflation and
maintaining exchange rate stability to spur growth in east Africa’s biggest
economy, Governor Njuguna Ndung’u said in the bank’s September newsletter.
The bank said in the newsletter it will aim to keep
inflation expectations within the government’s five per cent medium-term target
and keep the shilling stable to help foster growth.
“Looking ahead, monetary policy will focus on anchoring
inflation expectations to low levels within the target and sustaining the
stability of the exchange rate,” Ndung’u said.
“This would provide a stable macroeconomic environment
necessary to support a stronger economic growth base and a planning horizon by
private sector for higher investments.”
The bank early this month cut its key lending rate by a
record 350 basis points to 13 per cent, largely in line with market expectations
and against a background of reducing inflationary pressures and exchange rate
stability.
Kenya’s year-on-year inflation fell for the ninth straight
month in August, and faster than expected, to 6.09 per cent.
Projected good rains and a stable supply of food is expected
to further ease the country’s inflation.
Ndung’u said the bank will also strive to maintain adequate
stocks of foreign exchange reserves that provide a buffer for shocks and
confidence in the market.
“Payment of tuition fees for undergraduate/postgraduate studies shall be subject to a maximum limit of $25,000.00 per semester,” the Manual states.
The expansion of international card limits also reflects growing confidence among lenders that foreign exchange liquidity has improved enough to support retail dollar transactions.
Speaking recently at the BusinessDay 14th Annual CEO Forum in Lagos, CBN Olayemi Cardoso, governor of the CBN said buying and selling activities now increasingly determine outcomes in the foreign exchange market, unlike in the past when market participants relied heavily on routine Central Bank interventions.
According to Cardoso, Nigeria’s net foreign exchange reserves have risen from just over $3 billion at the start of the reform programme to more than $40 billion, while gross reserves have climbed to about $52 billion, providing stronger confidence for investors and enabling the Central Bank to reserve interventions for periods of market stress rather than day-to-day liquidity management.
The restoration and expansion of international naira card spending limits are increasingly being seen as one of the clearest signs that the benefits of the CBN’s foreign exchange reforms are beginning to reach households, students and businesses making legitimate cross-border payments.
The Secretary-General and Chief Executive Officer, WEC, Dr Angela Wilkinson, disclosed this in a statement, last Thursday.
“Nigeria’s participation comes at a pivotal time as the country seeks to expand energy access, strengthen energy security, accelerate gas development and mobilise the capital required for industrialisation and sustainable economic growth.
“WEC Nigeria will convene leaders from across the energy ecosystem, apply the WEC’s globally recognised Energy Trilemma framework to Nigeria’s unique context, and promote evidence-based dialogue, practical collaboration and informed policymaking.
“It will also ensure that Nigerian and broader African perspectives contribute meaningfully to global energy conversations,” she said.
Wilkinson expressed confidence that Nigeria would play a significant leadership role at the World Energy Congress scheduled for Riyadh in April 2027 and beyond.
The statement also quoted the Chairman of WEC Nigeria, Isa, as describing the country’s participation as an opportunity to deepen national and African leadership within the global energy community through practical solutions tailored to regional development priorities.
He said the platform would promote collaboration across sectors and attract sustainable investments into Nigeria’s energy sector.
The Chief Executive Officer of WEC Nigeria, Wunti, was quoted in the statement as saying that the council would connect leadership, evidence and investment to build a secure, affordable and sustainable energy system.
“This system will be capable of driving economic growth and shared prosperity.”
According to him, the platform will also connect Nigerian institutions and businesses with international knowledge, technology, partnerships and investment opportunities through the World Energy Council’s global network.
Recall that WEC, founded in 1923, is the world’s oldest independent and impartial community of energy leaders and practitioners, advancing informed, collaborative and practical action across the global energy system.