CBK retains lending rate at 8.75pc amid stable inflation

The Central Bank of Kenya (CBK) has decided to retain the lending rate at 8.75 percent, citing stable inflation and the exchange rate. The Monetary Policy Committee (MPC) stated that this decision was based on expectations that inflation will remain within the target range of 2.5 to 7.5 percent. In September, Kenya's inflation rate was recorded at 6.8 percent, slightly higher than the 6.6 percent recorded in August.

This increase was primarily driven by higher prices of food and non-alcoholic beverages, transport, housing, water, electricity, gas, and other fuels. Food prices rose due to an extended dry period affecting crop and livestock production, including milk output. Additionally, higher fuel prices, partly linked to disruptions in global oil supplies caused by the Middle East conflict, have added pressure to inflation.

CBK Governor Kamau Thugge mentioned that the MPC will continue to monitor global oil prices and their potential impact on inflation, as well as other developments in the global and domestic economies. The next MPC meeting is scheduled for December 2026.

Brief written by urgent.news from Capital Business's own syndicated text. Machine-written — may contain errors; check the original before relying on it.