Kenya: CBK Keeps Interest Rate At 8.75pc Amid Steady Inflation, Exchange Rate

What the report says

The Central Bank of Kenya has kept its benchmark lending rate at 8.75 percent after the Monetary Policy Committee met in Nairobi and concluded that the current setting remained appropriate. The decision comes as inflation stays within the bank’s target band, even though prices have edged higher in recent months and global economic conditions have become less certain.

According to the report carried by Capital FM and distributed by AllAfrica, Kenya’s inflation rate rose slightly to 6.5 percent in July from 6.4 percent in June. Food prices were a main driver, with staple items such as potatoes, tomatoes, kale, cabbages and onions remaining expensive for households. At the same time, non-core inflation eased to 15 percent, helped by lower energy costs following government measures, including fuel subsidies and a temporary reduction in fuel VAT.

The CBK said inflation is expected to remain in range in the near term, but warned that developments linked to the Middle East conflict could affect energy and transport costs. The bank also pointed to slower global growth, while noting that Kenya’s economy expanded by 5.3 percent in the first quarter of 2026 and that private sector credit growth stayed firm. The next interest-rate review is due in October.