Kenya Interest Rate

The Central Bank of Kenya slashed its benchmark interest rate by another 75 bps to 11.25% at its meeting on December 5th, 2024, marking the third consecutive rate reduction. The Monetary Policy Committee noted a slowdown in economic growth in the first half of the year and deemed further easing necessary to stimulate activity while preserving exchange rate stability. Meanwhile, inflation is expected to remain below the midpoint of the target range, aided by low fuel costs, stable food prices, and a steady exchange rate. Kenya’s annual inflation rate edged up to 2.8% in November 2024 from 2.7% in October, marking the first increase since August, yet remaining well below the central bank’s target midpoint of 5%.