NAIROBI, Kenya, April 3 – The Central Bank of Kenya’s (CBK’s) base rate will for the next one month remain at 13 percent amid a slowdown in inflation as well as the strengthening of the local currency against major global currencies such as the dollar.
In a statement, CBK’s Monetary Policy Committee (MPC), however, said that it will monitor the impact of policy measures.
This comes at a time when the country is experiencing a slowdown in inflation that dropped to 5.7 percent in March from 6.3 percent in February, attributed to lower food and fuel prices.
Similarly, the Kenyan shilling has strengthened against the American greenback. For example, in the first quarter of 2024, the local unit appreciated by 16 percent to stand at a new high of Sh131.8 to the U.S. dollar at the end of March, the Central Bank of Kenya said on Tuesday.
CBK noted that the currency gained from Sh157 at the beginning of January, with the rise linked to an increase in U.S. dollar inflows from the International Monetary Fund (IMF).
“The MPC noted that its previous measures have lowered inflation, addressed the exchange rate pressures, and anchored inflationary expectations,” the MPC said.
“The Committee further noted that overall inflation is expected to continue declining in the near term, supported by lower food and fuel prices, and pass-through effects of the recent exchange rate appreciation,” it added.
