FX.co ★ Kenya Lowers Key Policy Rate for 5th Time

The Central Bank of Kenya has lowered its benchmark interest rate by 75 basis points to 10% as of its meeting on April 8, 2025. This marks the fifth consecutive rate cut aimed at enhancing private sector lending and stimulating economic activity, while also maintaining exchange rate stability. In March 2025, Kenya's inflation rate was recorded at 3.6%, a slight increase from 3.5% in February, yet it remains comfortably within the target range of 5% ± 2.5%. Expectations are that inflation will stay below the mid-point of this range in the near term, supported by low core inflation, decreased food inflation, stable energy prices, and ongoing exchange rate stability.