by Bukeni AbdullatifCentral Bank of Kenya Maintains Key Interest Rate at 10.75%, Signals Potential Cuts in May
April 7, 2025 – Nairobi, Kenya — The Central Bank of Kenya (CBK) is expected to hold its benchmark interest rate steady at 10.75% during its upcoming Monetary Policy Committee (MPC) meeting on April 8. The decision comes as the Bank continues to walk a tightrope between stimulating economic growth and keeping inflation within manageable levels.
The current rate, set in February 2025 following a 50-basis-point cut, was aimed at boosting lending and reviving private sector credit flow in the face of economic headwinds. Analysts, however, suggest that the CBK may consider further easing by May, potentially bringing the Central Bank Rate (CBR) down to 10.00% and possibly 9.50% by the third quarter of the year—if inflation remains under control.
Inflation Trends Within Target Range
Kenya’s inflation rate rose to 3.5% in February, up slightly from previous months, but still comfortably within the CBK’s preferred range of 2.5% to 7.5%. Despite the increase, policymakers view current inflationary pressures as manageable, particularly in comparison to neighboring economies experiencing higher rates of currency depreciation and food price volatility.
“This cautious stance by the CBK reflects its intention to maintain price stability while not derailing the slow but steady economic recovery,” said Miriam Ndegwa, an economist with Capital Edge Advisory.
Regional Economic Pressures
The CBK’s decision also factors in wider regional dynamics. Across East Africa, central banks have faced growing pressure to balance inflation control with the need to support post-COVID economic growth and address lingering effects of global supply disruptions and climate-related agricultural challenges.
Kenya’s shilling has shown signs of stability in recent months, thanks in part to improved export earnings and diaspora remittances. A premature or aggressive rate cut could trigger capital outflows, something the CBK is keen to avoid.
Outlook: Easing on the Horizon?
While the Bank is expected to hold rates steady for now, market watchers see room for gradual monetary easing as inflationary threats recede and economic activity strengthens.
“The signals are clear: if inflation stays on track and the currency remains stable, we’re likely to see a rate cut by May,” said Charles Wekesa, an investment strategist at Jubilee Wealth Partners. “But the CBK will move cautiously. They don’t want to loosen too quickly and risk undoing recent progress.”
For now, the focus remains on stability—with the CBK taking a deliberate, measured approach to its monetary policy toolkit. The April MPC meeting will provide more insight into how the Bank plans to balance its dual mandates of price stability and economic growth in 2025.
President Ruto Urges Deputy Kindiki to Maintain Loyalty Amid Political Realignments
April 3, 2025 – Nairobi, Kenya
President William Ruto has called on his deputy, Prof. Kithure Kindiki, to remain loyal and committed to their shared vision of national development. Speaking during a political rally in Mt. Kenya, Ruto emphasized the importance of unity within the government, particularly as political realignments continue to shape the country’s leadership landscape.
Strengthening Political Alliances
Ruto’s appeal to Kindiki comes at a time when the president is working to solidify his political base, especially in the vote-rich Mt. Kenya region. Reports suggest growing tensions within the ruling coalition, with speculation that some leaders could be positioning themselves for future political battles ahead of the 2027 general elections.
“We have a big agenda for this country, and we must remain focused. I call upon my deputy and all leaders to stand firm and work together for the people,” Ruto told the crowd.
While the president did not directly address any internal conflicts, political analysts believe his statement was aimed at quelling speculation about potential divisions within his administration.
Kindiki’s Growing Influence
Prof. Kithure Kindiki, who currently serves as the Deputy President, has been gaining political influence, particularly in Mt. Kenya and the larger Central Kenya region. His growing prominence has led to speculation that he could emerge as a key player in the 2027 elections, either as Ruto’s running mate or as a contender for higher office.
However, insiders suggest that some political factions within the ruling coalition have been pushing for alternative leadership options, leading to underlying tensions.
Political Implications
Ruto’s call for loyalty could be interpreted as an attempt to manage internal power struggles before they escalate. With Kenya’s political landscape known for shifting alliances, maintaining unity within the ruling party will be crucial for Ruto as he seeks to implement his development agenda.
Meanwhile, Kindiki has not publicly responded to Ruto’s remarks, but sources close to him indicate that he remains committed to supporting the president’s leadership.
As the 2027 elections approach, political maneuvering and coalition-building will intensify, making loyalty and alliances key factors in shaping Kenya’s future leadership.
Kenyan Police Officers Injured in Haiti Amid Escalating Gang Violence
Port-au-Prince, Haiti – April 3, 2025
Two Kenyan police officers deployed in Haiti have sustained serious injuries during clashes with armed gangs over the past week. The officers, part of the United Nations-backed peacekeeping mission, were caught in intense gunfire as security forces attempted to regain control of volatile areas in Port-au-Prince.
Escalating Violence in Haiti
Haiti has been grappling with a severe security crisis, with heavily armed gangs controlling large parts of the capital and other regions. The Kenyan police officers, who were deployed as part of a multinational security support mission, have been conducting operations to stabilize the country and restore order.
According to reports, the injured officers were on a routine patrol when they were ambushed by gang members in one of Haiti’s most dangerous neighborhoods. They were quickly evacuated and are currently receiving medical treatment. Their conditions remain critical but stable.
Rising Casualties Among Kenyan Forces
This incident adds to the growing list of casualties among Kenyan officers in Haiti, raising concerns about their safety and the effectiveness of the mission. Last week, another Kenyan officer, Benedict Kabiru, was reported missing after an attack, and efforts to locate him are still ongoing.
Despite the dangers, Kenya’s leadership has reaffirmed its commitment to the peacekeeping mission. Inspector General of Police, Douglas Kanja, assured the public that the government is closely monitoring the situation and taking steps to protect the officers.
“Our officers in Haiti are performing a crucial role in restoring peace and order. We are working with international partners to ensure their safety and provide the necessary support,” said IG Kanja.
Controversy Over Kenya’s Deployment
Kenya’s decision to deploy over 700 officers to Haiti has been met with mixed reactions. While the government insists that the mission is a humanitarian effort to help restore security in the Caribbean nation, critics argue that Kenyan forces are being exposed to unnecessary risks in a conflict that is not their own.
The Haitian opposition has also questioned the deployment, with some groups viewing foreign intervention as a threat to Haiti’s sovereignty. Meanwhile, human rights organizations have urged the Kenyan government and the UN to ensure that proper security measures are in place for the officers on the ground.
What’s Next?
As violence continues to escalate, pressure is mounting on the Kenyan government to reassess its role in Haiti. The success of the mission will depend on international cooperation, adequate resources, and strong intelligence operations to counter gang threats effectively.
For now, the focus remains on ensuring the safety of the wounded officers and locating the missing Kenyan officer. With more engagements expected in the coming weeks, the risk of further casualties remains high.
Sh7.3 Billion Allocated for County Climate Resilience Projects
Nairobi, Kenya – April 3, 2025
The Kenyan government has allocated KSh 7.3 billion to 45 counties as part of the first phase of the County Climate Resilient Investment Grant (CCRIG). This initiative, backed by the World Bank and other international partners, aims to enhance climate resilience and promote sustainability at the county level.
Strengthening Climate Resilience
The CCRIG program is designed to equip counties with the necessary resources to mitigate and adapt to climate-related challenges, including droughts, floods, and erratic weather patterns that have increasingly affected livelihoods and infrastructure across Kenya.
The funds will be directed towards:
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Sustainable water management projects to enhance water conservation and reduce the impact of droughts.
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Reforestation and afforestation programs to combat deforestation and restore degraded lands.
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Renewable energy initiatives aimed at reducing reliance on fossil fuels.
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Climate-smart agriculture projects to support farmers in adapting to changing weather conditions.
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Disaster preparedness and response programs to help communities better cope with extreme weather events.
Counties Benefiting from the Grant
While all 47 counties are expected to eventually receive support, the initial allocation has prioritized counties that are most vulnerable to climate change. These include arid and semi-arid regions such as Turkana, Garissa, Wajir, and parts of the Rift Valley, which have been severely impacted by prolonged droughts and unpredictable rainfall patterns.
Speaking at the launch, Environment Cabinet Secretary Soipan Tuya emphasized the importance of local governments in driving climate action. “Counties are at the frontline of climate change impacts. By investing in resilience at the county level, we are ensuring that communities can adapt and thrive despite the changing climate,” she said.
A Boost for Kenya’s Climate Agenda
This grant aligns with Kenya’s National Climate Change Action Plan (NCCAP), which outlines strategies to transition toward a greener economy and reduce carbon emissions. The World Bank and other development partners have reiterated their commitment to supporting Kenya in achieving its climate goals.
World Bank Country Director, Keith Hansen, praised Kenya’s efforts, stating: “This initiative is a step in the right direction. Strengthening local resilience is crucial in tackling climate change, and we are committed to working with the Kenyan government to achieve sustainable development.”
Looking Ahead
With climate change continuing to pose significant threats to food security, water availability, and biodiversity, the success of this grant will depend on proper implementation, transparency, and accountability at the county level.
As the first phase rolls out, all eyes will be on how effectively the funds are utilized to create lasting climate solutions. The second phase is expected to expand support to additional counties and introduce more innovative climate adaptation projects.
Kenya Retracts Statement on China Debt Talks, Sparking Confusion
Nairobi, Kenya – April 3, 2025
The Kenyan government has withdrawn an earlier statement regarding discussions with China on debt restructuring, creating uncertainty about the country’s financial negotiations with its largest bilateral lender. Initially, the Ministry of Finance suggested that China was open to renegotiating Kenya’s debt terms, but the announcement was later deleted, raising questions about the actual status of engagements between the two nations.
A Sudden U-Turn
The statement, released earlier this week, implied that Kenya was in talks with Chinese officials over potential debt relief, a move that would have provided much-needed fiscal space for the government. However, just hours after the announcement, the Finance Ministry retracted its comments, clarifying that recent discussions with China had instead focused on trade and infrastructure cooperation.
Government officials now emphasize that these engagements are primarily aimed at enhancing economic ties, including potential funding for the long-planned extension of the Mombasa Standard Gauge Railway (SGR) to the Uganda border. This clarification has led to speculation about whether Kenya is actively seeking debt restructuring or simply reframing the narrative to avoid diplomatic or investor concerns.
The Debt Burden and Growing Concerns
Kenya’s public debt, which currently stands at over KSh 11 trillion, has been a topic of intense debate, with mounting pressure on the government to find sustainable repayment solutions. A significant portion of this debt is owed to China, which has funded key infrastructure projects, including the SGR.
With debt servicing costs eating up nearly 60% of government revenue, any possibility of relief would be a major boost to the economy. The sudden retraction of Kenya’s statement suggests that either the negotiations with China did not progress as expected or that the government is trying to control public perception of the situation.
Mixed Reactions from Experts and the Public
Economic analysts have expressed concerns over the lack of transparency in Kenya’s financial dealings with China. “The back-and-forth raises red flags about the actual discussions taking place,” says financial expert James Mutua. “If Kenya is indeed pursuing debt restructuring, it should be upfront about its strategy rather than sending mixed signals.”
On social media, Kenyans have reacted with skepticism, with many questioning whether the government is struggling to secure better loan terms or if political considerations are at play. Some fear that the retraction signals reluctance from China to renegotiate, while others believe it is a calculated move by Kenyan authorities to avoid panic in financial markets.
What’s Next for Kenya?
As the government pivots toward trade and infrastructure collaboration, the key question remains: Will Kenya be able to manage its debt without restructuring? The focus on extending the SGR to Uganda suggests that officials are still looking for additional funding rather than prioritizing repayment relief.
For now, Kenya’s economic future hangs in the balance as it navigates delicate negotiations with China while trying to reassure investors and the public about its financial stability. Whether this shift in narrative is strategic or a sign of deeper economic struggles remains to be seen.
Exray Taniua & Martha Mukisa Drop Electrifying “Come” Music Video
Kenyan Gengetone star Exray Taniua and Ugandan songstress Martha Mukisa have joined forces to deliver a sizzling new hit titled “Come.” The duo recently dropped the official music video, and fans across East Africa are already raving about it.
A Fusion of Gengetone and Afrobeat Vibes
“Come” is a high-energy track that blends Exray Taniua’s signature Gengetone style with Martha Mukisa’s smooth Afrobeat vocals. The collaboration brings together Kenya’s street sound and Uganda’s rhythmic melodies, creating a song that is both catchy and danceable.
A Visually Stunning Music Video
The official music video is a vibrant visual treat, featuring stunning locations, colorful outfits, and high-energy choreography. Directed by a top-notch team, the visuals complement the song’s infectious beats, making it an instant club banger. From stylish urban scenes to electrifying dance moves, the video captures the fun and youthful vibe of the song.
Fans React
Within hours of its release, “Come” has been met with overwhelming excitement. Fans have flooded social media with praise, calling the song a certified hit and applauding the seamless chemistry between Exray Taniua and Martha Mukisa. Many predict that this collab will dominate airwaves and streaming charts across East Africa.
With “Come”, Exray Taniua and Martha Mukisa have proven that cross-border collaborations are the future of East African music. The duo has set the stage for a major hit, and fans can’t wait to see what they’ll do next!
Wrangle in Roysambu Over Deteriorating Roads on Lumumba Drive
Residents of Roysambu’s Lumumba Drive have raised concerns over the worsening condition of their roads, leading to heated protests and growing frustration among the community. The deteriorating infrastructure, characterized by large potholes, poor drainage, and neglected maintenance, has significantly disrupted daily transportation and raised safety concerns.
Residents Take to the Streets
In response to the prolonged inaction from local authorities, residents recently staged demonstrations to demand urgent repairs. The protests quickly gained traction on social media, with users sharing videos and images depicting the poor state of Lumumba Drive. Reports indicate that police were deployed to disperse the demonstrators, using teargas to control the situation.
Impact of Poor Road Conditions
The current state of the roads has had a direct impact on businesses, motorists, and pedestrians. Commuters frequently experience delays due to impassable sections, while businesses along the road report losses as customers avoid the area. The lack of proper drainage has also exacerbated the issue, with stagnant water accumulating during rainy periods, further worsening road usability and hygiene concerns.
Local Authorities Respond
Following the public outcry, local authorities have acknowledged the grievances of Roysambu residents and assured them that plans are in place to rehabilitate the roads. However, skepticism remains high among the community, with many demanding a clear timeline and visible action rather than mere assurances.
A Reflection of a Larger Issue
The situation in Roysambu highlights a broader challenge affecting many parts of Nairobi, where infrastructure neglect continues to plague residents. The lack of timely road repairs has become a recurring issue, forcing communities to resort to protests to demand accountability from their leaders.
As the pressure mounts on authorities to act, residents of Lumumba Drive remain hopeful that their persistent efforts will lead to tangible improvements and a resolution to the ongoing wrangle over road conditions in Roysambu.
US-Kenya Partnership Strengthened Through Joint Engineering Efforts
The United States and Kenya continue to deepen their strategic partnership, with recent joint engineering efforts at Camp Simba near Kenya’s Manda Bay naval base serving as a testament to their growing cooperation. This collaboration follows Kenya’s official designation as a major non-NATO ally in 2024, further solidifying the ties between the two nations.
Enhancing Military and Infrastructure Cooperation
The joint engineering projects at Camp Simba focus on strengthening infrastructure, enhancing operational readiness, and improving security measures in the region. These efforts include upgrading facilities, expanding logistical capabilities, and bolstering defense mechanisms to support both nations’ security interests.
Kenya’s role as a critical partner in regional security has been emphasized through these developments. By working closely with U.S. forces, Kenya gains access to advanced military training, technological expertise, and logistical support that contribute to its defense capabilities.
Strategic Importance of Camp Simba
Camp Simba, located near the coastal town of Lamu, is a key military installation used for counterterrorism operations and regional security efforts. The base has played a crucial role in efforts to combat extremist groups in East Africa, particularly in neighboring Somalia. The latest infrastructure upgrades are expected to enhance the base’s operational efficiency, ensuring that both U.S. and Kenyan forces remain well-prepared to address security threats.
Strengthening Bilateral Relations
Beyond military collaboration, the U.S.-Kenyan partnership extends into economic and diplomatic areas. Kenya’s designation as a major non-NATO ally has opened doors for increased defense trade, intelligence sharing, and cooperative initiatives in fields such as cybersecurity and humanitarian assistance.
This partnership also contributes to broader regional stability, as Kenya continues to play a leadership role in peacekeeping and counterterrorism efforts across East Africa. The ongoing joint efforts at Camp Simba symbolize a long-term commitment to security, economic development, and diplomatic cooperation between the two nations.
As the relationship between the U.S. and Kenya evolves, these engineering initiatives at Camp Simba underscore the mutual benefits of their alliance, ensuring continued collaboration in defense and beyond.
Central Bank of Kenya Expected to Hold Rates Amid Inflation Concerns
The Central Bank of Kenya (CBK) is widely expected to maintain its benchmark interest rate at 10.75% in its upcoming policy meeting. Analysts suggest that the bank is likely to keep rates unchanged due to persistent inflationary pressures, which saw inflation rise to 3.5% in February. However, there is speculation that the CBK might consider a 75-basis-point cut in May, bringing the rate down to 10.00%.
Reasons for Maintaining the Rate
The decision to hold the current rate is primarily driven by concerns over inflation and economic stability. While inflation remains within the CBK’s target range, its upward trend signals potential risks to consumer purchasing power. By maintaining a higher interest rate, the central bank aims to curb inflation while ensuring stability in the financial sector.
Additionally, the CBK must balance monetary policy with economic growth objectives. A premature rate cut could lead to increased borrowing and spending, potentially exacerbating inflationary pressures. By keeping the rate steady, the central bank ensures that economic expansion remains sustainable without overheating the economy.
Potential Rate Cut in May
Despite holding rates in the immediate term, analysts predict that the CBK may opt for a 75-basis-point cut in May. A reduction to 10.00% would aim to stimulate economic growth by making borrowing more affordable for businesses and consumers. The timing of this potential cut will depend on future inflation trends and economic data in the coming months.
Impact on the Economy
If the CBK maintains its current stance, businesses and consumers can expect stable lending rates in the short term. This stability may provide some reassurance to investors and financial institutions. However, if inflation continues to rise, the central bank may need to reassess its policy approach to prevent excessive economic strain.
Overall, the CBK’s upcoming decision reflects its commitment to maintaining price stability while supporting economic growth. The potential rate cut in May will depend on inflationary trends and overall economic performance, making the coming months crucial for Kenya’s financial landscape.
Amos Kimunya’s Corruption Case Hearing Begins Amid Public Scrutiny
Former National Assembly Majority Leader and Kipiriri MP Amos Kimunya is set to appear in court today as he faces charges related to alleged abuse of office and fraudulent disposal of public property. The case, which has attracted significant public interest, revolves around the alleged irregular excision of 25 acres of land belonging to the Njabini Farmers Training Centre.
Background of the Case
The allegations against Kimunya stem from his tenure as a government official, during which he is accused of authorizing the transfer of public land to private entities without following due process. Investigations indicate that the transaction may have resulted in substantial financial losses for the state, sparking concerns over corruption and mismanagement in public office.
Kimunya, who has previously held various high-ranking government positions, has denied any wrongdoing, insisting that the land deal was conducted within legal parameters. His defense team is expected to argue that the transaction adhered to existing regulations and that he is being unfairly targeted for political reasons.
Legal and Political Implications
The case has rekindled debates about corruption and accountability in Kenya’s public sector. Anti-corruption agencies have emphasized the need for stringent measures to curb the misuse of public resources, with Kimunya’s trial serving as a high-profile example of efforts to hold leaders accountable.
Legal experts suggest that the outcome of the case could set a precedent for similar corruption-related offenses, particularly regarding land transactions and public asset management. If convicted, Kimunya could face severe penalties, including fines, asset forfeiture, or even a ban from holding public office.
Politically, the case could have far-reaching consequences. As a former influential figure in Kenya’s political landscape, Kimunya’s trial is being closely watched by both allies and adversaries. His supporters argue that the charges are politically motivated, while critics see the case as a test of the government’s commitment to fighting corruption.
Public and Civil Society Reactions
The case has drawn attention from civil society organizations and the public, many of whom are demanding transparency and justice. Anti-corruption advocates have urged the judiciary to ensure a fair and expedited trial, emphasizing that the fight against corruption should not be selective or influenced by political considerations.
Public opinion remains divided, with some viewing Kimunya as a scapegoat in a larger scheme of political maneuvering, while others see the case as a long-overdue step in addressing graft in Kenya’s governance structures.
Next Steps in the Trial
As the hearing progresses, the court is expected to examine key evidence, including land transaction records, official correspondence, and testimonies from witnesses. The prosecution aims to establish a clear link between Kimunya’s actions and the alleged irregularities in the land deal.
The case is likely to be drawn out over several sessions, with both the defense and prosecution presenting arguments before a final ruling is made. Regardless of the outcome, the trial underscores the growing demand for accountability and integrity among public officials in Kenya.
With the nation keenly following the proceedings, the verdict in Kimunya’s case could have lasting implications on the country’s legal and political landscape, shaping future anti-corruption efforts and governance reforms.
