What Kenya’s MPC decision means for its economy
CBK maintained policy rates in August, aims to tame inflation

Key questions this article answers:
  1. The Central Bank of Kenya held interest rates steady at its recent meeting; why?
  2. How will this pause in interest rate hikes affect consumers and businesses in Kenya?


On August 9, 2023, the Central Bank of Kenya (CBK) decided to retain its Central Bank Rate (CBR) at 10.5%, retaining the increase it made during the emergency meeting on June 27, 2023. The bank expects inflation to keep slowing, holding tight within its target range of 5% ± 2.5%. The emergency meeting in June was held just over a week after the new CBK governor, Dr Kamau Thugge, assumed office.
 

 

 

Between January 2022 and August 2023, the CBK increased the CBR (benchmark interest rate) five times by 350 basis points to curb rising inflation. But with inflation easing for two consecutive months, the CBK decided to keep rates steady at its August meeting, allowing the previous rate hike to take full

This story is only available to Premium subscribers Subscribe or sign in to finish reading

Not ready to subscribe? Register to read a selection of free stories

Dumebi Oluwole

Dumebi Oluwole

Read Latest

Consumer Goods Transaction Brief: IFC Provides $30M Loan to DPI-backed North African Retail Giant, Kazyon Group

PREMIUM - 14 MAR 2025

Private Capital in Africa 2025: DRC’s Investment Trends & Outlook

PREMIUM - 14 MAR 2025

Private Capital in Africa 2025: Côte d'Ivoire’s Investment Trends & Outlook

PREMIUM - 13 MAR 2025

Technology Transaction Brief: Vumatel Completes the Full Acquisition of South African Fibre Company, Herotel

PREMIUM - 13 MAR 2025

Download our mobile app for a more immersive reading experience

Scan QR code
mobile download