Kenya's ERC Lowers Fuel Prices Amid Market Dynamics
Kenya's Energy Regulatory Commission (ERC) has reduced retail pump prices for super petrol, diesel, and kerosene. This adjustment, reflecting global crude oil trends, is not expected to have an immediate significant impact on inflation.
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The ERC has decreased retail pump prices: super petrol by 86 cents per litre, diesel by Ksh 1.16, and kerosene by 23 cents. Faith Mwangi from Genghis Capital noted the potential lag in translating these price cuts into inflation reductions, emphasizing their broader impact on transportation and electricity costs.
She highlighted a slow uptake of Exchange Traded Funds (ETFs) and other investments at the Nairobi Securities Exchange due to limited investor education. Increased trading volume was observed for companies like Safaricom and KCB ahead of the August elections. Mwangi anticipates market normalization towards year-end as election uncertainties diminish, suggesting investors remain cautious.
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