Brexit will slow down trade between Kenya and Europe

 

Britain’s vote to leave the European Union, commonly referred to as ‘Brexit’, will slow down Kenya’s trade between the EU and the UK since two different regimes will be involved, Central Bank Governor Patrick Njoroge has said.

“Uncertainties in the global economy have increased with Brexit, it has sparked global financial volatility and a sharp depreciation of the Sterling Pound,” Njoroge explained.

He added that it is not clear what the outcome will be but so far, Kenyans have not yet been affected. He urged investors to be more cautious.

“Our exports will be under a higher tariff regime, exporters maintain your market share there is great sensitivity to the issue,” Njoroge said.

The governor was addressing the media during a bi-monthly briefing at the CBK headquarters. He said that overall inflation increased to 5.8 per cent in June 2016 from 5.0 per cent in May but remained within the government target range.

“Our inflation remains out of control, it is true it has increased, this increase was largely due to prices of some food items such as tomatoes, Irish potatoes and cabbages,” said Njoroge.

Njoroge noted that no-food-non-fuel (NFNF) inflation declined to 5.0 per cent in June from 5.4 per cent in May

“This indicates that there were no significant demand pressures in the economy,” said Njoroge. He noted that the banking sector continues to stabilise with improving liquidity conditions and non-stable non-performing loans in May and June.

 

Previous Reprieve for borrowers as parliament passes law to control lending rates
Next Man City in talks with Everton to sign Stones

You might also like

Latest 0 Comments

Climatic shocks, interest rate cap, general elections likely to wreak havoc on otherwise stable economy, experts warn

Adverse climatic shocks affecting Kenya’s largely rain-fed agricultural sector, unintended effects of the interest rate cap, and potential uncertainties in the run-up to the 2017 general elections could scare off

Latest 0 Comments

Trump-Clinton debate breaks TV record

Republican presidential candidate Donald Trump (left) and Democrat’s Hillary Clinton (right) during the first Presidential Debate at Hofstra University in Hempstead, New York, USA, 26 September 2016. The debate was

Business 0 Comments

Tourism Authority releases hotel star rankings ahead of peak season

The Kenya Tourism Authority has released the official star ranking of hotels and accommodation properties in the Coast and upcountry locales of the South Rift, Central and Eastern regions. This

0 Comments

No Comments Yet!

You can be first to comment this post!

Leave a Reply