Kenyan central bank adds funds to financial system

Dec 24, 2010

An anticipated rise in spending across Kenya has prompted the country's central bank to inject more funds into the financial system.

Business Daily reports it has added a further 17.3 billion Kenyan shillings (€163.5 million) in a bid to prepare for the expected increase in withdrawals that will be made by customers over the Christmas period. Atul Shah, Managing Director of Nakumatt supermarkets, was quoted by the news source as saying the average shopper will spend around 1,350 shillings during the festive period, with sales likely to be boosted this year thanks to growing optimism surrounding the economy.

Last month, Standard & Poor's raised its sovereign credit rating for the nation to B+, citing its improving economic outlook. "It is normal for banks to increase their capacity at this time of the year," added Martin Oduor-Otieno of KCB, noting the start of January will also see parents withdraw funds to pay for their children's school fees.