Kenya Surprises With First Rate Cut in More Than Four Years

Kenya’s central bank surprised financial markets by cutting its benchmark interest rate for the first time since early 2020, providing some respite to consumers who have become increasingly frustrated by the high cost of living, Bloomberg News reported. The monetary policy committee lowered the key rate to 12.75% from 13%, Governor Kamau Thugge said in an emailed statement Tuesday. Only one of nine economists in a Bloomberg survey predicted the move. Yields on government bonds due 2031 eased 4 basis points to 11.55% by 6:51 pm in Nairobi, the first drop after three consecutive days of gains.
Kenya
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South Africa’s Delinquent Municipalities Owe Eskom $4.5 Billion

South African municipalities owe Eskom Holdings SOC Ltd. a total of 82.3 billion rand ($4.5 billion) in arrears, which the embattled state power utility is struggling to collect, Bloomberg News reported. Eskom supplies electricity to the municipalities, which in turn sell it on to households and businesses — and both have seen a rapid rise in outstanding debts.
South Africa
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Ethiopia Seeks to Shield Its People From Cost-of-Living Blow

Ethiopia has earmarked several billion dollars to cushion the cost-of-living impact of economic reforms being implemented to win support from the International Monetary Fund, Bloomberg News reported. It plans 550 billion birr ($5.9 billion) in additional spending, of which 40% will go into food, fuel and fertilizer subsidies, as well as increasing salaries for government workers, according to Eyob Tekalign Tolina, state minister in the finance ministry. “The government has prepared a big package for social spending,” Eyob said in an interview with Bloomberg TV’s Jennifer Zabasajja.
Ethiopia
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