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0 News Ghana, Latest Updates and Breaking News of Ghana, Roger A. Agana, https://newsghana.com.gh/kenyan-equities-to-stay-steady-amid-monetary-policy-shifts-and-strong-remittances/
Kenyan equities are expected to remain stable, with the NSE 20-share index closing flat last Friday and likely to hover around the 1,900-point mark in the near term.
This follows a notable decline in the 91-day Treasury bill rate, which has fallen below 10% for the first time since April 2023. This drop signals the Central Bank of Kenya’s accommodative monetary policy, making equities more attractive relative to government securities. However, retail investors, who have traditionally favored the higher returns from Treasury bills, may shift towards other investment avenues, potentially disrupting the fixed-income market.
The Kenyan shilling continues to maintain stability against the U.S. dollar, bolstered by a 19.2% increase in diaspora remittances, which reached USD 423.2 million in November 2024, according to the Central Bank of Kenya. These remittance inflows have provided significant support to the current account and the foreign exchange market, contributing to a stable financial environment. With foreign exchange reserves at USD 9 billion—covering 4.6 months of imports and meeting statutory requirements—the market remains confident, further bolstering the potential for foreign investment.
News Ghana, Latest Updates and Breaking News of Ghana, Roger A. Agana, https://newsghana.com.gh/kenyan-equities-to-stay-steady-amid-monetary-policy-shifts-and-strong-remittances/
