NAIROBI, Kenya, October 8 – The Central Bank of Kenya (CBK) has maintained the Central Bank Rate (CBR) at 8.75 percent, citing stable inflation and the exchange rate.
The Monetary Policy Committee (MPC) said the decision was based on expectations that inflation will remain within the target range of 2.5 to 7.5 percent.
Kenya’s inflation rate stood at 6.8 percent in September, up slightly from 6.6 percent in August, according to the Kenya National Bureau of Statistics (KNBS).
The increase was mainly driven by higher prices of food and non-alcoholic beverages, transport, housing, water, electricity, gas and other fuels.
Food prices have risen following an extended dry period that has affected crop and livestock production, including milk output.
Higher fuel prices, partly linked to disruptions in global oil supplies caused by the Middle East conflict, have also added pressure to inflation.
CBK Governor Kamau Thugge said the MPC will continue monitoring global oil prices and their possible impact on inflation.
“The MPC noted that there is need to continue monitoring the evolution of global oil prices and any second-round effects on inflation, as well as other developments in the global and domestic economies, and stands ready to take further action as necessary in line with its mandate,” Thugge said, adding that the MPC will next meet in December 2026.
