CBK holds its rate at 8.75% for a fourth meeting as inflation edges up to 6.8%
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.
DailyDrop Kenya edition No. 4 · Morning · THU., OCT. 8, 2026