The International Monetary Fund (IMF) has updated the Central Bank of Kenya (CBK)'s economic model to incorporate climate shocks and government spending into interest rate decisions.

• The new model is deemed "far superior" to the old one in forecasting inflation, economic growth, exchange rates, and climate-related risks.
• Key organizations involved are the IMF and the Central Bank of Kenya.
• This update aims to help the CBK better manage inflation, with a target of 5 per cent, and improve the accuracy of monetary policy decisions.

Kenya has secured a Ksh22.1 billion (JPY 25 billion) Samurai Bond from Japan, aimed at boosting local manufacturing and industrial growth.

• A significant portion, Ksh13.1 billion (JPY 15 billion), is allocated to the National Automotive Policy to promote local vehicle assembly.
• Key figures involved include President William Ruto and representatives from Japan's Nippon Export and Investment Insurance and the Japan International Cooperation Agency.
• The bond also includes funding for energy loss reduction and the broader national reform agenda.

President William Ruto has directed an immediate salary increase for all civil servants, effective July. The adjustments will encompass basic pay and key allowances, including housing and commuter allowances.

• The salary review affects all public servants in ministries, state departments, agencies, and public institutions.
• Public Service Cabinet Secretary Geoffrey Ruku announced the directive, emphasizing its implementation by President Ruto.
• Government entities are also mandated to migrate their payroll systems to the Human Resource Information System (HRIS) within one month or risk salary remittance suspension, as ordered by President Ruto.