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Kenya's Central Bank Lowers Policy Rate by 25bps to 8.75% as Inflation Weakens

BY MT Newswires | ECONOMIC | 10:09 AM EST

10:09 AM EST, 02/10/2026 (MT Newswires) -- Kenya's central bank (CBK) Tuesday said its Monetary Policy Committee decided to lower the Central Bank Rate (CBR) by 25 basis points to 8.75%.

Kenya's overall inflation declined to 4.4% in January 2026 from 4.5% in December 2025, and remained below the mid-point of the target range of 5%, more or less 2.5 percentage points, noted the central bank.

Overall inflation is expected to remain below the midpoint of the target range in the near term, supported by stable prices of processed food items and energy, and stability in the exchange rate, wrote CBK in its policy statement.

The Kenyan economy is predicted to remain resilient, with real gross growth projected to pick up to 5.5% this year and 5.6% in 2027, supported by the resilience of the services sector, continued recovery of industrial sector, and stable growth of agriculture, added CBK.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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