This research report was prepared by the Research Department of Old Mutual Securities Limited. Old Mutual Securities Limited is a securities trading company licensed by the Capital Markets Authority (Kenya) for the purpose of facilitating trade on the Nairobi Securities Exchange.

Here are our views on the news making headlines today for Kenya:
Kenya oil product imports to hit record in May. Kenya is set to import record volumes of oil products in May as its economy gathers steam, soaking up some of Asia's excess supply and helping put a floor under refining margins.

Our View: As international oil over-supply triggered a significant price drop from USD 111 per barrel in June 2014 to a low of USD 47 in January 2015.This has increased the demand for oil and its products. This increase in imports will lead to the widening current account deficit which further puts pressure on the weakening shilling. Although there will be a reprieve to the shilling in the short term should the government use the IMF loan to shore it up, in the long run however, the measures to promote exports is critical to provide long term stability to the currency.
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