Latest decision: On 30 July, the Central Bank voted to keep the bank rate at 3.75%, following cuts of 150...
Central Bank Rate in Kenya
The Central Bank Rate (%, eop) ended 2024 at 11.25%, down from the 12.50% end-2024 value and down from the reading of 8.50% a decade earlier. For reference, the average interest rate in Sub-Saharan Africa was 14.31% at end-2024. For more information on interest rate, visit our dedicated page.
Kenya Interest Rate Chart
Note: This chart displays Policy Interest Rate (%) for Kenya from 2014 to 2025.
Source: Macrobond.
Kenya Interest Rate Data
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| Central Bank Rate (%, eop) | 7.00 | 8.75 | 12.50 | 11.25 | 9.00 |
Central Bank leaves rates unchanged in June
Bank extends hold: At its meeting on 9 June, the Central Bank of Kenya (CBK) decided to maintain its policy rate at 8.75%. This marks the second consecutive hold after 10 straight cuts totaling 425 basis points since August 2024.
Geopolitical uncertainty underpins decision: The Bank favored a hold largely due to the uncertainty triggered by the war in the Middle East. Regarding price pressures, the CBK noted that while headline inflation increased considerably in May compared to April, it remained within the 2.5–7.5% target band. This, coupled with the Bank’s expectation that average inflation will remain within the target range, made a rate hike unnecessary. On the flipside, a cut wasn’t warranted, as the economy continues to expand at a robust pace.
Panelists split on outlook: The Central Bank did not provide explicit forward guidance but hinted at a wait-and-see approach regarding future interest rate changes. Our panelists have turned more hawkish, with a small majority now expecting the CBK to hike the policy rate this year. The remainder expect the Bank to stand pat through the end of 2026. Consequently, our Consensus is for a slight increase in the policy rate this year. The CBK will reconvene in August.
Consensus Forecasts and Projections for the next ten years
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Kenyan interest rate projections for the next ten years from a panel of 6 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable interest rate forecast available for Kenyan interest rate.
Download one of our sample reports to visualize what a Consensus Forecast is and see our Kenyan interest rate projections.
Want to get access to the full dataset of Kenyan interest rate forecasts? Send an email to info@focus-economics.com.
Latest Global Monetary Policy News
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