The Central Bank of Kenya (CBK) has maintained the Central Bank Rate (CBR) at 8.75 percent following the Monetary Policy Committee (MPC) meeting held on April 8, 2026.

The decision comes as policymakers monitor global developments, including the ongoing conflict in the Middle East, which the committee said has disrupted global supply chains and contributed to higher energy prices.

Despite these external pressures, Kenya’s inflation remains within the target band. Headline inflation stood at 4.4 percent in March 2026, up slightly from 4.3 percent recorded in February but still below the midpoint of the government’s 5 ± 2.5 percent target range.

Core inflation remained stable at 2.1 percent, supported by lower prices of some processed foods including sugar and maize flour, while non-core inflation increased slightly due to higher vegetable prices.

“The Kenya Shilling Overnight Interbank Average Rate (KESONIA) remained stable at 8.75 percent on April 9, unchanged from April 2,” read the CBK’s bulettin in part.

Shilling remains stable against dollar

The Kenya shilling remained stable against major international and regional currencies during the week ending April 9, 2026. According to CBK data, the shilling exchanged at Ksh129.53 per US dollar on April 9 compared to Ksh129.99 recorded on April 2.

Foreign exchange reserves remained strong at Ksh1.72T as of April 9, equivalent to about 5.7 months of import cover. This is above the statutory requirement that the country maintains at least four months of import cover.

The reserves provide a buffer against external shocks and help support stability in the exchange rate amid fluctuations in global markets.

Domestic lending rates decline

The CBK also noted improving conditions in the domestic financial market.

The money market remained liquid during the week ending April 9, with commercial banks holding average excess reserves of Ksh6.9 billion above the 3.25 percent Cash Reserve Ratio requirement.

The Kenya Shilling Overnight Interbank Average Rate (KESONIA) remained stable at 8.75 percent during the period.

Interbank activity increased in terms of the number of transactions, averaging 32 during the week compared to 24 in the previous week. However, the value traded declined to Ksh14 billion from Ksh18.7 billion.

Average lending rates in the domestic market continued to decline, while credit growth to the private sector improved.

Economic outlook remains steady

Kenya’s economy continued to show resilience, with real Gross Domestic Product growth estimated at 5.0 percent in 2025.

The CBK projects the economy to grow by about 5.3 percent in 2026, slightly lower than earlier projections due to risks associated with rising global energy prices and disruptions linked to the Middle East conflict.

The MPC said the current monetary policy stance remains appropriate to keep inflation expectations within the target range and support exchange rate stability.

The committee is scheduled to review the policy again at its next meeting in June 2026.