The Central Bank of Kenya (CBK) has maintained the Central Bank Rate (CBR) at 8.75 percent, as the Monetary Policy Committee (MPC) seeks to balance inflationary pressures with economic growth.
The decision was made during the MPC meeting held on October 7, 2026, marking the fourth consecutive policy meeting at which the benchmark rate has remained unchanged.
The decision comes as Kenya’s annual inflation rate increased to 6.8 percent in September, up from 6.6 percent in August. The rate remains within the government’s preferred target range of 2.5 to 7.5 percent, although the increase puts inflation closer to the upper end of the range.
CBK said inflation is expected to remain within the target range in the near term. The regulator is also monitoring external risks that could affect prices, including developments in global energy markets and geopolitical tensions.
The decision is significant for borrowers, businesses and investors. Commercial lending rates have been declining from previous highs, although borrowing costs remain considerably above the CBR. CBK’s latest figures show the average commercial lending rate at 14.34 percent in August 2026.
At the same time, private-sector credit has continued to recover, supporting economic activity. The CBK decision therefore signals that policymakers believe the current monetary policy stance remains appropriate while they assess inflation and economic conditions.
The central bank’s latest decision also provides stability for businesses and households planning their borrowing and investment decisions. However, the cost of credit is likely to remain an important consideration for consumers and companies seeking loans.
The CBK will continue monitoring inflation, exchange-rate developments, global economic conditions and credit growth as it determines the direction of monetary policy in the coming months.
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