Kenya Interest Rate

The central bank of Kenya cut its Central Bank Rate by 25bps to 9.25% in its October 2025 meeting, an eighth consecutive rate cut since the rate was at a 12-year high in April of 2024 to extend efforts of supporting credit and economic growth. The Bank's Governor Kamau Thugge noted that the less-restrictive policy would continue to stimulate the economy, estimating the Kenya's GDP would expand by 5.2% this year and 5.5% the next, compared to the 4.7% growth rate from last year. The cut was also warranted by softer concerns of higher inflation as Thugge claimed inflation expectations remained stable. Additionally, the softer dollar aided the anchoring of the shilling and supported flows from Kenya's recent $1.5 billion eurobond.