Global rate trends continue to shape the region's outlook with the currency markets remaining stable. The United States Fed is holding rates steady amid inflation concerns. CNBC Africa spoke with Kevin Karobia, Investments Manager at BK Capital, to discuss expected market movements and how listed firms performed in Q1 of 2025. In the interview, Kevin Karobia provided insights into key movements across East Africa in terms of the policy rate. While Uganda and Rwanda maintained their rates, Kenya opted for a rate cut. This move was expected due to the constraints on lending to the private sector in Kenya, with the Central Bank aiming to stimulate lending by lowering baseline rates. In Rwanda, where inflation is stabilizing and lending rates are gradually decreasing, there has been a resurgence in some sectors. The impact of global investment outflows is also being considered before any significant rate cuts. Additionally, interest rates in Rwanda, particularly on the shorter end of the curve, are currently at historic lows, offering favorable conditions for investors. Turning to the currency markets, Kevin discussed the stability of the Kenyan shilling, the resilience of the Ugandan shilling, and the relative stability of the Rwandan franc. Kenya has maintained currency stability through government measures such as euro bond liability management, while Uganda has benefited from increased prices of key exports like gold, copper, and coffee. Rwanda, despite experiencing minor fluctuations, has seen growth in its foreign exchange reserves, providing a sense of stability in the currency market. In light of market performance, BK Capital is gearing up to launch a private debt fund in Rwanda. The fund aims to address the longstanding credit gap in the market by offering structured financing to SMEs through inventory financing and invoice discounting. By tailoring credit solutions to SME profiles, BK Capital seeks to support economic growth and bolster Rwanda's capital markets. The fund is expected to launch by the end of the month, with an initial fund size of around 15 billion Rwandan francs. Kevin Karobia expressed optimism that the fund would contribute to bridging the credit gap and fostering economic development in Rwanda.