Why CBK held Kenya’s lending rate at 8.75% despite rising inflation pressures
Kenya’s central bank has kept its benchmark lending rate unchanged at 8.75 per cent despite rising inflation, betting that existing measures can contain price pressures while supporting economic recovery and protecting borrowers from further tightening. The Central Bank of Kenya (CBK) Monetary Policy Committee (MPC) maintained the Central Bank Rate (CBR) during its meeting held […]
Kenya's central bank, the Central Bank of Kenya (CBK), maintained its benchmark lending rate at 8.75 percent during a meeting on October 7, 2026, despite inflation rising to 6.8 percent in September 2026. The rate remains unchanged as the CBK believes existing measures can control price pressures while supporting economic recovery and protecting borrowers.
Inflation increased mainly due to higher prices of processed food products like milk, wheat products, and edible oils. Core inflation, which excludes volatile items, rose to 4.0 percent from 3.4 percent in August. Despite global risks like the Middle East conflict and rising international energy costs, CBK expects inflation to remain within the target range in the short term due to stable exchange rates, improved food supply, and government interventions.
Written by urgent.news from People Daily Kenya's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- CBK retains lending rate at 8.75pc amid stable inflation capitalfm.africa
