The Central Bank of Kenya (CBK) has retained its lending rates at 8.75 per cent after the Kenya Bankers' Association (KBA) urged it to maintain the rates.

🇰🇪 Breaking It Down

In a statement issued after the August 11 meeting, the Monetary Policy Committee (MPC) said the decision was made to keep inflation expectations anchored amid rising global economic uncertainties and risks linked to higher oil prices.

According to MPC, global growth is projected to slow to 3.0 per cent in 2026, down from 3.5 per cent in 2025, largely due to higher energy prices resulting from the ongoing conflict in the Middle East.

"Having considered these developments, the Committee concluded that the current monetary policy stance, with the Central Bank Rate unchanged at 8.75 per cent, remains appropriate to ensure that inflation expectations remain anchored within the target range, and the exchange rate remains stable," the statement read in part.

📌 What You Need to Know

The Committee also noted that global inflation is expected to rise to 4.7 percent in 2026, up from 4.1 percent in 2025, driven by higher energy and transport costs.

"Global inflation is expected to increase to 4.7 percent in 2026 from 4.1 percent in 2025 on account of higher energy prices and transport costs. Inflation rates in most major economies have increased in recent months, and remained above their respective targets, due to higher energy prices and stickiness of core inflation rates," it added.

📰 Source: Kenyans.co.ke