Kenya's central bank trimmed its benchmark interest rate by 25 bps to 8.75% on February 10, 2026, marking its tenth consecutive rate cut following a similar move in December. Policymakers said the decision builds on previous policy actions designed to stimulate private-sector lending and support economic activity, while safeguarding price stability and a stable exchange rate. The annual inflation rate in Kenya eased to a six-month low of 4.4% in January 2026, from 4.5% in December, staying below the 5% midpoint of the central bank’s target range. It is expected to remain below the midpoint of the target range in the near term. Meanwhile, the central bank noted that Kenya’s economy remained resilient in Q3 2025, with the GDP rising 4.9%. Full-year GDP growth is now projected at 5% for 2025, down from the previous 5.2% estimate because of slower agriculture, and is expected to accelerate to 5.5% in 2026 and 5.6% in 2027, supported by services and industry.
