The Central Bank of Kenya (CBK) has announced a cut to its policy rate, bringing the Central Bank Rate (CBR) down to 9.50% from 9.75%. The decision was made by the Monetary Policy Committee (MPC) at its meeting on August 12, 2025.
This move is part of a series of rate cuts aimed at stimulating economic activity and encouraging lending to the private sector. The CBK’s decision was based on a comprehensive assessment of the economy, taking into account the inflation outlook, economic growth performance, and exchange rate stability.
The CBK noted that the Kenyan economy grew by 4.9% in the first quarter of 2025, a significant acceleration from the previous year. This growth was attributed to strong performance in key sectors like services and agriculture. With inflation remaining low and stable, the MPC determined there was scope for a further easing of monetary policy to support this positive economic momentum.
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