Central Bank of Kenya (CBK) Governor Dr. Kamau Thugge has lauded the successful completion of the CBK Police Housing Complex in Nairobi, terming it a landmark collaboration between the Central Bank and the National Police Service.
Speaking during the official opening ceremony presided over by President William Ruto, Governor Thugge said the new facility symbolizes a strategic move to consolidate and enhance the welfare of officers tasked with safeguarding the Bank’s operations.
“This complex provides decent housing for the officers who ensure the safety of the Central Bank premises,” Dr. Thugge stated. “It brings them together in one location, just minutes from the city centre, enhancing both operational efficiency and community cohesion.”The new housing complex includes a range of amenities aimed at improving the quality of life for the officers and their families, including recreational, educational, and fitness facilities.
Turning his attention to broader economic matters, Governor Thugge took the opportunity to provide an update on the CBK’s core mandates—monetary policy and financial stability.
He highlighted recent economic gains, noting that inflation had dropped to 3.8% in May 2025 from a high of 9.6% in October 2022. “Our inflation targeting framework, which aims for 5% plus or minus 2.5%, is clearly working,” he said.
Governor Thugge also pointed to a stable exchange rate—hovering around Ksh 129.2 to the US dollar—as evidence of external sector resilience. He attributed this to strong performance in exports, remittances, tourism, and favorable global oil prices.
The Governor further disclosed that Kenya’s foreign exchange reserves had grown from $6.5 billion at the start of 2024 to $10.3 billion today—a historic high.
On interest rates, Dr. Thugge reported a sharp drop in Treasury bill yields, with the 91-day rate falling from 17% to 8.3%, a development he said would ease the government’s debt servicing burden.
“We’ve also seen a modest decline in commercial lending rates, from 17.2% to 15.6%, and we are in continued dialogue with banks to bring this down further and stimulate private sector growth,” he added.Dr. Thugge emphasized the resilience of Kenya’s financial sector, pointing to strong capital adequacy and ample liquidity. He noted that the recent move to increase the minimum capital requirement for banks from Ksh 1 billion to Ksh 10 billion is expected to further bolster stability and competitiveness in the industry.
In conclusion, the Governor thanked the President and government stakeholders for their support and reaffirmed the Central Bank’s commitment to driving economic stability and inclusive growth.
