FX.co ★ Kenya Cuts Key Policy Rate for 9th Meeting

In its December 2025 session, the Central Bank of Kenya reduced its benchmark interest rate by 25 basis points, bringing it down to 9%. This marks the ninth consecutive reduction in rates. Governor Kamau Thugge stated that this decision aims to enhance earlier policy measures intended to encourage banks to increase lending to the private sector and to bolster economic activities. In November, Kenya's annual inflation rate decreased slightly to 4.5% from 4.6% observed in the prior two months. Notably, inflation has remained below the central bank's target midpoint of 5% since mid-2024.