This archive report was first published on 2 September 2019.
According to the Kenya National Bureau of Statistics (KNBS), the country's inflation rate declined by 0.9% in August to 5%, down from 6.3% recorded in July.
The Consumer Price Index (CPI) also decreased to 201.78 in August from 203.61 in July.
The decline in food prices, attributed to favorable weather conditions, was a significant factor in the decrease in inflation rate. Prices of essential food items such as Sukuma wiki (Kales), potatoes, cabbages, carrots, tomatoes, and maize grain decreased.
Additionally, the Housing, Water, Electricity, Gas, and other fuel index decreased by 0.10 percent in August, with the cost of a 13kg cylinder of LPG falling by 0.98 percent from KSh2171 in July to KSh2150.27 in August.
However, inflation remains higher than in August 2018, when it stood at 4.04% and the CPI was 192.18.
Meanwhile, data from the Central Bank of Kenya (CBK) shows that the Kenyan shilling remained relatively stable against major international and regional currencies, averaging KSh102.96 – KSh103.48 against the dollar.
The foreign exchange reserves as at August 29 remained adequate at $9252 million (5.78 months import cover), a decline from the $9568 (6.01 months import cover) recorded in July.
Furthermore, the current account deficit narrowed to 4.2 percent of the GDP in the 12 months to July 2019 from 5.0 percent in December 2018, reflecting a resilient performance of horticulture exports, strong growth in diaspora remittances, higher receipts from tourism and transport services, and slower growth of imports.
On the equity markets, the NASI, NSE 25, and NSE 20 share price indices declined by 1.5 percent, 0.8 percent, and 0.9 percent respectively during the week ending August 29, with market capitalization, equity turnover, and shares traded decreasing by 3.0 percent, 66.5 percent, and 68.4 percent respectively.
