Kenya holds rates, Nigeria insecurity worsening

The energy price shock prompted the Central Bank of Kenya to halt its easing cycle this week and, while policymakers sound relatively sanguine, they appear to be underestimating the risks from growing macro imbalances which could force the CBK to hike rates. Elsewhere, northern Nigeria suffered another wave of violent attacks. President Tinubu’s security agenda is clearly faltering, which could increase the fiscal burden from security spending and damage agricultural output.