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FRANKLIN

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The Monetary Policy Committee left CBR rate unchanged at 8.75% for the fourth consecutive meeting citing inflation still within the 2.5% -7.5% target range, a stable exchange rate and the need to support private sector credit growth which stood at 10.6% in September compared to 10.3% in August 2026. Fed raised rate by 25 bps a move which strengthened the dollar. With the US 10Y yield at around 5.35% (the highest level in 2 decades), we expect foreign investors to shift capital from equities into US treasuries. Sustained higher yield will suck out liquidity from the equities market (Milk shake theory). Kenya's inflation rose to 6.8% in September from 6.6% in August. If inflation moves toward the upper limit of 7.5% and remains above 7%, CBK is likely to begin hiking CBR rate (tightening). Higher inflation and investors are demanding for higher yield would drive outflows. Sustained foreign net selling between October and December is likely to give us a modest correction on NSE. #InvestWithEncap @EncapKenya

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The monetary policy commitee of Central Bank of Kenya will make a decision depending on own domestic inflation and economic realities. Kenya's inflation is still sticky at 6.7% and it's driven mainly by energy prices. The shilling is stable against the dollar. Given oil is Kenya's biggest import, the G2G deal reduces the pressure on the exchange rate. Our bond market is strong and stable. GDP growth slowed down in 2025 and this year. Private sector credit rose 8% due to easing by CBK. Bank's balance sheet expanded strongly in H1 2026 but Kenya's GDP growth slowed down pointing lagged transmission to the broader economy ...and it could take more time to realize faster economic growth if CBK automatically follow when the Fed hikes rates.

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The difference between dating a slightly older woman and Gen Z is that the older woman has already texted and called to check if I'm okay while my Gen Z is still waiting for me to be the one who reaches out.

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Guys if you come home and find that your wife has left...and then you decide to re-marry who actually left the marriage, you or the wife?