The Central Bank of Kenya (CBK) has maintained its benchmark lending rate at 8.75 per cent as global inflationary pressures rise amid increasing energy and food prices.
In its monetary policy review released on October 9, 2026, the CBK said the Monetary Policy Committee (MPC) retained the Central Bank Rate (CBR) following its meeting on October 7, citing the need to keep inflation expectations anchored and maintain exchange rate stability.
The regulator expects Kenya’s overall inflation to remain within the target range in the near term, supported by monetary policy measures, government interventions and a stable shilling.
The Kenya shilling traded at KSh129.94 against the US dollar on October 8, compared with KSh129.71 on October 1, reflecting relative stability during the week.
Meanwhile, foreign exchange reserves stood at $14.736 billion, equivalent to 5.9 months of import cover, exceeding the CBK’s statutory minimum requirement of four months.
The money market remained liquid, with commercial banks’ excess reserves averaging KSh23.3 billion above the cash reserve requirement. The Kenya Shilling Overnight Interbank Average remained stable at 8.75 per cent.
Demand for government securities also remained strong, with Treasury bills receiving bids worth KSh75.4 billion against an advertised KSh28 billion on October 8. This represented a performance rate of 269.3 per cent, while interest rates on the 91-day, 182-day and 364-day Treasury bills declined.
At the Nairobi Securities Exchange, the Nairobi All Share Index (NASI) fell by 0.60 per cent, while the NSE 25 Share Index declined by 0.27 per cent. The NSE 20 Share Index, however, gained 0.11 per cent.
Globally, inflation concerns persisted as euro area annual inflation rose to 3.8 per cent in September from 3.2 per cent in August, largely driven by higher energy prices.
Murban crude oil prices also climbed to $101.67 per barrel on October 8 from $95.76 a week earlier, amid geopolitical tensions in the Middle East, highlighting continued risks to global price stability.
