The Central Bank of Kenya’s Monetary Policy Committee (MPC) held the Central Bank Rate (CBR) at 8.75%, judging the stance appropriate to keep inflation expectations anchored within the target range and the exchange rate stable. Over the past year, the MPC lowered the CBR in 25-basis-point steps from 9.75% in August 2025 to 8.75% in February 2026. Overall inflation was 6.5% in July, within the 5±2.5% target range, and is expected to remain within range in the near term, assuming the Middle East conflict de-escalates. The economy is projected to grow 4.9% in 2026, while private-sector credit growth remained strong at 10.2% in July. The current account deficit was estimated at 3.0% of GDP in the 12 months to June, while foreign exchange reserves stood at USD 15.249 billion and continued to provide an adequate buffer. The global outlook has weakened as the Middle East conflict pushes up energy and transport costs, alongside trade policy uncertainty and the Russia-Ukraine conflict. The MPC will monitor global oil prices, second-round inflation effects and domestic and global developments, and stands ready to act as necessary.
Central Bank of Kenya2026-08-11
Central Bank of Kenya Holds Policy Rate at 8.75%
The Central Bank of Kenya’s Monetary Policy Committee held the Central Bank Rate (CBR) at 8.75%, citing anchored inflation expectations and exchange-rate stability. Inflation was 6.5% in July and is expected to remain within the 5±2.5% target range, while the economy is projected to grow 4.9% in 2026.