Kenya Interest Rate

The Central Bank of Kenya trimmed its benchmark interest rate by 75 bps to 10% at its meeting on April 8th, 2025, marking the fifth consecutive rate reduction. The Committee emphasized that further easing of the monetary policy was possible to stimulate private sector lending and economic activity, while also safeguarding exchange rate stability. Inflation in Kenya stood at 3.6% in March 2025, slightly higher than the 3.5% recorded in February, but still well within the target range of 5±2.5%. It is expected to remain below the mid-point of the target range in the near term, with low core inflation, reduced food inflation, stable energy prices, and continued exchange rate stability providing support. Regarding domestic growth, the central bank forecasts 5.4% GDP growth in 2025, up from 4.6% in 2024, driven by strong service sectors, agriculture, recovering private sector credit, and better exports.