MkukiMoto
Elder Lister
Economic Update by Cytonn Investments - April 19, 2020
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During the week ending Friday, April 17:
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During the week ending Friday, April 17:
- In the retail sector, International Finance Corporation (IFC), World Bank’s private lending arm, acquired a minority stake in retail chain, Naivas International Limited for Kshs 1.5 bn, while Shoprite Holdings, South African based international retailer, announced the closure of its Waterfront Mall branch in Karen, where it was the anchor tenant, due to the reduced flow of shoppers;
- The Energy and Petroleum Regulatory Authority (EPRA) released their monthly statement on the Maximum Retail Prices in Kenya for the period 15th April 2020 to 14th May 2020. Petrol, diesel, and kerosene prices have declined by 16.2%, 4.0% and 19.0% to Kshs 92.9, Kshs 97.6, and Kshs 77.3 per litre, respectively.
- Treasury -bills remained undersubscribed, with the subscription rate coming in at 59.5%, up from 35.6% the previous week, attributable to tightened liquidity in the money markets as banks traded cautiously in the interbank market in order to meet their Cash Reserve Requirement (CRR) cycle ending 15th April 2020.
- The International Monetary Fund (IMF) released the first chapter of the World Economic Outlook (The Great Lockdown), where they revised Kenya’s 2020 GDP growth rate for 2020 to 1.0%, from the 6.0% growth rate projected at the beginning of the year. The global economy is projected to contract by 3.0% in 2020, a worse outlook than the one seen in the 2008 – 2009 financial crisis.
- In response to the challenges brought about by the COVID-19 pandemic, the National Treasury released the Supplementary Budget Estimates II for the 2019/20 fiscal year. The proposed budget will be tabled to the National Assembly for debate and approval on 22nd April 2020. The Treasury proposes a Kshs 9.7 bn decline in the gross total supplementary budget estimate I to Kshs 2,803.1 bn from Kshs 2,812.8 bn;
- Senator Hon. Johnson Sakaja, tabled before the senate, the Pandemic Response and Management Bill which outlines socio-economic protective measures such as tenancy agreements, social safety nets, loans and mortgages, aimed at cushioning business relationships in the wake of the COVID-19 pandemic.
