Market Analysis Report October-December 2023

Furthermore, the proportion of public sector credit was 37.4 and 37.7 per cent in October and November 2023, compared to 36.9 and 37.2 per cent in the same months in 2022. [...] The banking sector's return on assets was 2.7 and 2.8 per cent in October and November 2023, down from 3.2 and 3.5 per cent in the respective months in 2022, a trend that has continued in 2023 and is attributed to the effects of the Kenya shilling depreciation on private equity funds during investment and distribution periods. [...] The share of pension funds decreased to 30.2 per cent in the October-December quarter of the fiscal year 2023/2024, compared to 32.8 per cent in the same period of the fiscal year 2022/2023. [...] The level of trading activity grew, with average investor participation rising to 55.1 per cent and 62.2 per cent in October and November 2023, compared to 31.8 per cent and 60.5 per cent in October and November 2022. [...] IMF debt thresholds were exceeded, with the present value of external debt in per cent of exports, external debt service in per cent of revenue, external debt service in per cent of exports, and present value of total public debt in per cent of GDP recorded at 347, 315, 21, and 68, respectively, in 2023 compared to 180, 18, 15, and 55 in 2022, respectively.