Kenya’s central bank has lowered its key interest rate to 8.75% in February 2026, marking a slight easing from the previous level of 9.00% set in December 2025. The move represents the first rate cut since December and signals a modest shift in the country’s monetary policy stance.
The decision, reflected in updated data as of 10 February 2026, suggests policymakers are now more comfortable trimming borrowing costs after holding rates at 9.00% through the end of last year. The reduction of 25 basis points may be aimed at supporting economic activity while still keeping a relatively tight grip on inflationary pressures.
With the benchmark rate now at 8.75%, market participants and businesses will be watching closely for any further policy adjustments in the coming months, as the central bank balances growth considerations with price stability.
