Kenya smallholder tea farmers earn Sh63.6 billion from tea exports
Inflation remains above five per cent government target due to revised VAT Act
By TF News Reporter
Inflation eased last month after rising gradually since July 2013 on the back of a base effect and implementation of VAT 2013 effective September.
The Central Bank of Kenya (CBK) says in its weekly bulletin that overall 12-month inflation eased from 8.29 per cent in September 2013 to 7.76 per cent in October 2013 and non-food non-fuel inflation from 5.02 per cent to 4.94 per cent.
The money market liquidity was relatively tight during the week ending October 30, 2013 on account of payment of taxes to Government and sale of Government securities.
The Central Bank liquidity management through reverse repo securities resulted in Sh15.7 billion injection to boost liquidity in the market.
Reflective of the tight liquidity, the average interbank rate increased to 11.55 per cent during the week ending October 30, 2013 from 11.05 per cent in the previous week.
The Kenya Shilling exchange rate depicted mixed performance against major international currencies in the week ending October 31, 2013.
It weakened marginally to trade at an average of Sh85 per US$ compared to Sh84.78 per US$ in the week ending October 24, 2013.
The usable foreign exchange reserves held by Central Bank remained strong at US$ 5,869 million as at October 24, 2013 compared with US$ 5,891 million as at October 24, 2013.
The Government offered for sale Treasury bills worth Sh7 billion during the week ending November 01, 2013. A total of Sh6.8 billion was accepted out of Sh8.8 billion bids received.
Gross Government domestic debt increased by Sh98.6 billion to reach Sh1149.6 billion on October 25, 2013, from Sh1, 051 billion held at the end of June 2013.
During the week under review, gross government domestic debt rose by Sh4.8 billion, largely on account of Treasury bills.
The NSE maintained its strong performance in the week ending October 31, 2013 despite the closure of the market on October 29th 2013 on technical hitch.
NSE 20 Share Index gained 43.23 points and NASI 1.68 points. Market capitalization added Sh 23.55 billion but Equity turnover declined by 28.9 per cent.
The bonds turnover rose 272.8 per cent. FTSE NSE 15 Index and FTSE NSE 25 Index rose by 1.81 points and 1.61 points respectively, but FTSE Government Bond Index declined by 0.45 points.