- CBK has retained the benchmark rate at 8.75% for the third consecutive meeting.
- Inflation stood at 6.5% in July, while the economy grew 5.3% in Q1 2026.
- The unchanged rate is expected to keep borrowing costs stable for businesses and households.
The Central Bank of Kenya (CBK) has retained the Central Bank Rate (CBR) at 8.75% for the third consecutive monetary policy meeting, signalling that borrowing costs will remain unchanged.
The decision, announced after the Monetary Policy Committee (MPC) meeting held on August 11, 2026, means commercial banks, Saccos, businesses and households are unlikely to see immediate changes in lending rates linked to the benchmark interest rate.
By maintaining the CBK benchmark interest rate, the central bank is seeking to support economic stability while monitoring inflation, credit growth and broader financial market conditions. The MPC said the current monetary policy stance remains appropriate to keep inflation expectations anchored within the target range and to ensure the exchange rate remains stable.
YOU MAY WANT TO READ:
Kenya’s inflation stood at 6.5% in July 2026, while the economy grew by 5.3% in the first quarter of the year. The committee also flagged risks from elevated global oil prices and slowing world growth, projecting global output to ease to 3.0% in 2026, down from 3.5% the previous year.
The unchanged policy rate provides a stable interest rate environment for Sacco lending, business financing, mortgage loans and consumer credit, allowing financial institutions and borrowers to plan with greater certainty.
The decision follows two previous holds at the same level, in June and April 2026, after a lengthy easing cycle that had cumulatively cut the benchmark rate by 425 basis points between June 2024 and February 2026. The Kenya Bankers Association (KBA) had urged CBK to retain the rate ahead of this month’s meeting, citing inflation within target, resilient growth and improving private sector credit.
By Ian Khayoyo
Get more stories from our website: Sacco Review.
For comments and clarifications, write to: Saccoreview@
Kindly follow us via our social media pages on Facebook: Sacco Review Newspaper for timely updates
Stay ahead of the pack! Grab the latest Sacco Review newspaper!
