The CBK's Monetary Policy Committee kept the Central Bank Rate at 8.75% on 7 October, a fourth hold in a row (CBK site, The Kenya Times, Rio Times). Rio Times reported September inflation of 6.8% against 6.6% in August, inside the 2.5%-7.5% target. The Kenya Times reported an average lending rate of 14.4% in September (14.3% in August) and private-sector credit growth of 10.6% (10.3%).
The rate anchors borrowing costs across the economy. Holding it with inflation rising shows the committee weighing price pressure against slow growth.
Loan rates are unlikely to fall soon. Imported inflation from oil is the main risk to household budgets.
Holding keeps the shilling stable and inflation inside the target.
Critics say high lending rates and modest credit growth are holding back business investment.
The next test is the October oil bill and the EPRA review on the 14th. DailyDrop has not seen the full MPC statement.
CBK, The Kenya Times, Rio Times (7 Oct 2026)
CBK holds its rate at 8.75% for a fourth meeting as inflation edges up to 6.8%
The Monetary Policy Committee kept the Central Bank Rate unchanged on Wednesday. September inflation rose from 6.6% in August but stays inside the target range.
The Central Bank of Kenya's Monetary Policy Committee kept the Central Bank Rate at 8.75% on Wednesday 7 October, the fourth meeting in a row without a change, according to the CBK's own site, The Kenya Times and Rio Times. Rio Times reported that inflation rose to 6.8% in September from 6.6% in August, still within the government's target band of 2.5% to 7.5%. The Kenya Times reported that the average commercial banks' lending rate was 14.4% in September, up from 14.3% in August, and that private-sector credit growth rose to 10.6% from 10.3%.
For borrowers, a hold means no relief on loan rates for now, while savers and the shilling keep the benefit of a higher rate. The decision arrives as oil prices and Gulf tensions threaten to push imported inflation up. DailyDrop has not seen the committee's full statement, only its summary as reported, and has not seen analysts' views on the October decision.