CBK retains rate at 8.75% as inflation rises to 6.8%
Core inflation, which excludes more volatile items, increased to 4.0% in September from 3.4% in August. CBK attributed the rise mainly to higher prices of processed food products.
Core inflation, which excludes more volatile items, increased to 4.0% in September from 3.4% in August. CBK attributed the rise mainly to higher prices of processed food products.
The Market Perceptions Survey found that businesses remained broadly optimistic about the country’s economic prospects over the next 12 months, with lower lending rates, recovering tourism and construction, stronger private-sector credit and macroeconomic stability expected to support growth
The Monetary Policy Committee said the global economic outlook has weakened, with growth now expected to come in at 3.0 per cent in 2026 compared to 3.5 per cent recorded in 2025.
The total banking sector loan book also expanded to Sh4.54 trillion in May, compared to Sh4.15 trillion a year earlier. This growth has been supported by a steady decline in borrowing costs, following pressure on banks to lower lending rat
The Central Bank of Kenya said rising global inflation risks, driven mainly by the conflict in the Middle East, continue to influence domestic price trends and justify keeping the rate unchanged.
Kenya’s inflation remained under control in March, coming in at 4.4 percent. This is below the midpoint of the official target band of 5±2.5 percent. The MPC linked the lower inflation to reduced prices of key processed foods, including sugar and maize flour, which helped ease pressure on households.
Kenya’s overall inflation declined to 4.4 per cent in January 2026 from 4.5 per cent in December 2025, remaining below the midpoint of the target range of 5±2.5 per cent.
The National Bank of Ethiopia’s (NBE) Monetary Policy Committee (MPC) noted that headline inflation stood at 10.9 percent in November 2025, continuing a downward trend toward the central bank’s goal of single-digit inflation.