Sharp Daily
No Result
View All Result
Wednesday, October 8, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home News

Central Bank of Kenya Governor Nominee, Thugge Plans A Dollar-Denominated Bond to Boost Kenya’s Economy

Vanessa Waithaka by Vanessa Waithaka
May 31, 2023
in News
Reading Time: 2 mins read

The Central Bank of Kenya (CBK) governor nominee Kamau Thugge plans to float a local dollar-denominated bond to get rich Kenyans who are holding over Sh1 trillion in deposits to release the greenback in fresh efforts to ease pressure on the Kenya Shilling.

During his vetting before the National Assembly’s Finance and Planning Committee, Thugge expressed his intention to work with the National Treasury to issue a dollar-denominated bond with attractive returns. Similar to the issuance of Treasury bonds and bills, the bond will aim to provide a favourable rate of return to entice wealthy locals and businesses to release their fixed deposit accounts held in local commercial banks.

The plan seeks to increase the availability of dollars in the domestic financial system by selling dollar-denominated bonds locally. Thugge said he would work with the National Treasury to issue the dollar bond with attractive returns to get rich locals and businesses to release their fixed deposit accounts in local commercial banks.

He stated CBK data shows that foreign currency bank deposits hit a historic high of Sh1.06 trillion in March as individuals and big companies sought a safe haven for their wealth. Investors have continued to open foreign currency-dominated accounts, hoping to gain from the sharp fall in the shillings against major currencies like the dollar and the pound. The freefall of the shilling is despite the existence of a government-backed deal to import fuel on credit from the Gulf nations, which was meant to reduce demand and arrest the depreciation.

RELATEDPOSTS

How public ratings could shift healthcare dynamics in Kenya

September 4, 2025

Why firms are shedding jobs despite survival

June 19, 2025

Kamau Thugge’s plan entails targeting these wealthy Kenyans to invest in the dollar bond, thereby boosting liquidity and foreign exchange reserves. He said the CBK and the Treasury would also seek to encourage Kenyans in the diaspora to invest in the dollar bond to increase inflows into the country. Currently, the central bank’s foreign exchange reserves are at $6.49 billion (3.62 months of imports), which the bank says is sufficient to cushion any short-term shocks in the foreign exchange market.

Recognizing the potential of diaspora investments, Thugge aims to attract Kenyans to invest in the bond to increase inflows into the country. Combining local and diaspora investments can help mitigate the pressure on the Kenyan shilling and stabilize the foreign exchange market.

Previous Post

KCB Group Injects an Additional SH1.2 Billion in its Ugandan Unit

Next Post

Germany Slips into Recession Amidst Lingering Economic Challenges

Vanessa Waithaka

Vanessa Waithaka

Related Posts

News

Kenya Q2’ 2025 GDP growth accelerates to 5.0%

October 3, 2025
News

Argentina’s crisis and Kenya’s lessons on political economy and market confidence

September 25, 2025
News

Kenya’s financial system remains stable but faces rising risks

September 25, 2025
News

Where do Kenyan stock returns come from? A napkin framework

September 19, 2025
News

September snapshot: CMMF yields 13.12% as month unfolds

September 5, 2025
Private equity investment business concept
News

Private equity and insurance

September 4, 2025

LATEST STORIES

Equities, Bonds, or Fixed Deposits?

October 7, 2025

Kenya’s Inflation is creeping up, What it means for investors

October 7, 2025

The Role of Micro-Pensions Plans in Kenya

October 3, 2025

Understanding the link between international aid and cooperative finance stability in Sub-Saharan Africa

October 3, 2025

Kenya Pipeline Company IPO

October 3, 2025

Kenya Q2’ 2025 GDP growth accelerates to 5.0%

October 3, 2025

Kenya’s Regulated SACCOs Cross Trillion Shilling Mark

October 2, 2025

Post-September review: What CMMF did and what’s next

September 26, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024