Kenya Central Bank Cuts Rate to 9.50%
Last update: August 12, 2025
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Kenya’s central bank lowers policy rate to 9.50% for the seventh straight time, aiming to boost private-sector lending amid rising inflation.
The Central Bank of Kenya (CBK) cut its benchmark lending rate by 25 basis points to 9.50% on Tuesday, marking its seventh consecutive reduction. Policymakers said the move reflects continued scope to ease monetary conditions and stimulate credit to the private sector.
CBI News reports that the Monetary Policy Committee said the decision aims to reinforce earlier measures taken to encourage banks to lend more actively. The cut matched the median forecast in a Reuters economists’ poll.
Consumer inflation rose to 4.1% year-on-year in July from 3.8% in June, remaining within the CBK’s target range. However, Kenya’s fiscal position remains under strain due to high debt repayments and revenue shortfalls.
According to CBI News, CBK indicated it would continue to monitor economic conditions closely, leaving the door open for further easing if needed.
Posted by Abiodun Salako · Last updated: August 12, 2025
