Unpacking Kenya's Q4’23 investment performance
Kenya's investment performance has seen a fair share of surges and swells amid global inflationary pressures impacting the economy with the latest monetary policy rising the lending rate to 13 per cent to help strengthen the economy. CNBC Africa Cliff Mayaka, Senior Investment Analyst, Zamara Group for more.
Thu, 08 Feb 2024 15:02:17 GMT
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AI Generated Summary
- Kenya's GDP growth in 2023 saw a significant increase fueled by good rainfall, growth in the tourism sector, and a rebound from the previous year's election-related slowdown.
- Zamara Group's quarterly survey reported a slowdown in pension schemes' performance in 2023, largely due to negative performance in the local equity market and rising interest rates affecting fixed income investments.
- The impact of inflation on pensioners was felt in 2023 as schemes underperformed, but the long-term perspective yielded positive returns above inflation rates over a 10-year period.
Kenya's investment performance has seen a fair share of surges and swells amid global inflationary pressures impacting the economy. The latest monetary policy has seen the lending rate rise to 13 per cent to help strengthen the economy. In a recent interview with CNBC Africa, Cliff Mayaka, Senior Investment Analyst at Zamara Group, discussed Kenya's Q4’23 investment and pension scheme performance. The conversation delved into the factors behind Kenya's economic growth, highlights from Zamara's quarterly publication, inflation's impact on pensioners, the effect of the 50 basis points rise in the lending rate, and the potential impact of the U.S. Federal Reserve's interest rate cuts in 2024. Mayaka highlighted the key drivers of investment performance, including offshore investments, high interest rates, and the potential for growth in the local equity market in 2024. He underscored the importance of monitoring market trends and foreign investments for a successful investment strategy moving forward.
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