Kenya

Kenya central bank cuts interest rate again to boost growth

The Central Bank of Kenya cut its key interest rate for the fourth consecutive meeting on Wednesday, aiming to stimulate economic growth. The Monetary Policy Committee lowered the Central Bank Rate by 50 basis points to 10.75%. The Kenyan economy has faced challenges, including the impact of the COVID-19 pandemic and a recent drought. While the economy showed signs of recovery, growth has slowed. The rate cut is expected to encourage lending, boost investment, and stimulate economic activity. However, the bank acknowledged potential risks, such as higher-than-expected inflation and a worsening global economic environment. This action reflects the central bank’s commitment to supporting economic growth while maintaining price stability.

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William Ruto: Diplomacy the only solution to DRC conflict

Kenya’s president, William Ruto, on Monday described the situation in the Democratic Republic of Congo as “very complicated” and said it could only be solved diplomatically. “We do not see, from where I sit, a possibility of a military solution to the challenges that face the eastern DRC,” he told reporters during a briefing. “It was, it is, and am sure it will continue to be the case that engagement, dialogue, consultations is the only viable way out of the situation in DRC.” His comments came as Rwanda-backed M23 rebels claimed to have captured Congo’s largest city, Goma, as fighting escalated despite calls from the UN Security Council for the insurgents to withdraw. Gunshots rang out across Goma overnight before dozens of rebels in military uniform early Monday morning marched into the capital of North Kivu province, which sits on the border with Rwanda. The volatile region is rich in minerals that are critical to much of the world’s technology. Kinshasa said the rebel advance amounted to a “declaration of war”. Amid the escalating conflict, Ruto, who is also chairman of the East African Community, said he has called an emergency meeting for member states on Wednesday. He said Rwandan President Paul Kagame and Congo’s President Félix Tshisekedi were due to attend the meeting. Congo late Saturday broke off relations with Rwanda, which has denied backing the M23 despite evidence collected by UN experts and others. The eastern DRC has been a tinderbox for decades and the United Nations has warned that this latest M23 offensive risks spiralling into a regional war.

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