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Global Partnership Nairobi Outcome Document For HLM2

Global Partnership Nairobi Outcome Document. Click to download the document.

Kenya Hosts the Second High Level Meeting 2016

Second High Level Meeting Of The Global Partnership For Effective Development Cooperation (GPEDC) – Opening Ceremony. Click to download speech

Kenya signs agreement with China Exim Bank

Remarks By Mr. Henry Rotich, Cabinet Secretary/National Treasury During The Signing Of The Financing Agreement With The Government Of China Held On 29th November, 2016. Click to download Remarks

High interest rates and impact on the cost of living as companies and the public react to changes effected by banks, with the shilling tumbling to 103.71 last month before rebounding to Sh101.1 against the dollar on Wednesday could pose threat to economic growth.
Coming at a time when the country is facing a slow economic expansion and borrowing costs have hit a two-year high, Central Bank’s efforts to stem the shilling’s slide by intervening in the foreign exchange market and mopping up liquidity has not had the desired effect.


When banks hike lending rate, it signals difficulties for companies and individuals currently servicing loans, leading to a significant change in growth projections as plans based on old interest rates are revised.
Those planning to start businesses and invest in additional funds following the revisions need to take into account new rates, and investors who had planned to expand facilities by importing machinery must align their costs to the new regime.
Interest rates, just like fuel and energy, normally have an impact on all strata of the economy. The revision in interest rates has a knock-on effect on the economy and could lead to less investment as people shy away from “expensive capital” inputs-the effect, if widespread, could lead to a higher inflation as investment funds become more costly.
Analysts say companies are now working towards doing more with less by becoming more efficient in energy use and reducing wastage.
They say the liquidity problem needs to be managed by the Central Bank, the National Treasury and the government in general who must reduce the current account deficit by increasing exports while managing expenditure and receipts.
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