Features of the week
Kenya seeks spending cap waiver from IMF
- Kenya is seeking to have a spending cap waiver from the International Monetary Fund (IMF) on the KES 14.6 billion World Bank vaccine loan without breaching the terms
- The 38-month programme allows for flexibility in addressing social and emergency spending provided the IMF approves
- Treasury seeks modification of the end-June 2022 ceiling to allow the use of the COVID-19 related resources made available from the World Bank
- We opine that if approved, the waiver would boost Kenya’s vaccination program at a time when infection rates have been rising within the country. The government is focused on vaccinating all adults by June 2022.
Equities Market Summary
Nairobi Securities Exchange Performance
The All Share Index (NASI) and the NSE 20 edged up by 4.2% and 2.6% w-o-w to close the week at 170.57 and 1,901.97 respectively. Notable price gains in the week included; NMG (7.8% w/w to KES 19.95), BK Group (6.1% w/w to KES 28.00), DTB (4.4% w/w to KES 59.50), Bamburi (4.4% w/w to KES 36.60), HF (4.3 w/w to KES 3.90), Absa (3.1% w/w to KES 11.55). Safaricom’s price rose by 5.4% w/w to KES 40.00. We expect price stability in the coming week.