During the month, KPLC and KenGen released their full year financials. KPLC profit after tax increased by 258.68% y/y to KES 1.49Bn. The increase was seen from a rise in revenue derived from the reopening of the economy and a larger consumer base. Additionally, cost management and financing strategies boosted the significant increase in profits. Meanwhile, KenGen saw net earnings decrease by 93.94% to KES 1.19Bn. The large decrease was attributed to the reinstatement of income tax obligations that had been relaxed in 2020, this resulted in an increase in tax payments by 195.92% y/y to KES 13.6Bn in 2021. Nonetheless, the board recommended a KES 0.30 dividend that is likely to increase investor sentiment and support the counter.

Inflation declined to 6.45% in October versus 6.91% in September. The decrease was attributed to lower transport prices during the month as the government reinstated the fuel subsidy to reduce pressure on prices. Meanwhile, the food and nonalcoholic beverage index increased by 1.11% to 10.60% due to lower agricultural production as weather conditions remained unfavorable.

Crude oil prices hit a seven-year high in early October pushed up by energy supply concerns and continued low oil stocks resulting in the commodity touching highs of $85.43 per barrel. In Kenya, the Energy and Petroleum Regulatory Authority (EPRA) subsidized local pump prices leading to a decrease in the price of petrol and diesel by KES 5.00 to KES 129.72 and KES 110.60 respectively.

The month of October also saw a weakening shilling that hit a 10-month low against the dollar closing the month at KES 111.21, this was driven by an increasing import bill and lower agricultural exports.