The Central Bank of Kenya (CBK) has maintained the Central Bank Rate at 8.75 per cent for the eighth straight month, citing a stable economic outlook despite global pressures.

🇰🇪 Breaking It Down

In a statement shared with Kenyans.co.ke on October 7, CBK said inflation remains within the threshold of 6.8 per cent despite shocks from the Middle East conflict. Additionally, the committee also projected the economy to grow by 5 per cent, spearheaded by a vibrant industry and services.

" The Monetary Policy Committee (MPC) decided to maintain the Central Bank Rate (CBR) at 8.75 percent, during its meeting held on October 7, 2026," said the statement in part.

The decision, announced after the Monetary Policy Committee (MPC) meeting on October 7, keeps the benchmark rate unchanged for 8 months straight, offering stability for borrowers and businesses seeking loans.

📌 What You Need to Know

CBK notes the inflation, which rose to about 4 per cent in September, was largely contributed by the soaring prices in key food prices such as milk, edible oils, and wheat that the nation has been grappling with for over two months.  However, non-core inflation declined to 14 per cent from 14.7 per cent, mainly due to easing vegetable prices and lower energy costs, while government interventions continued to cushion consumers.

The economy is expected to grow by 5.3 per cent in 2027, although prolonged geopolitical tensions, uncertainty over trade policies and the potential impact of El Niño rains pose risks. More to follow...

📰 Source: Kenyans.co.ke