Updated 12 November 2026
Kenya’s central bank rate is 8.75%, the level the Central Bank of Kenya (CBK) Monetary Policy Committee (MPC) kept on 7 October 2026. The central bank rate (CBR) is the lowest rate CBK charges on loans to banks, and every bank loan, Treasury bill and money market fund return in Kenya takes its cue from it. This guide explains what the central bank rate is, lists every MPC decision since 2022 from the CBK’s own table, and shows what a move means for your loan or savings.
Updated 12 November 2026. Figures come from the CBK central bank rate table and other CBK pages (Central Bank Rate table, Key Rates panel, MPC press releases and the Next MPC Meeting notice), checked on 12 November 2026.
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What the central bank rate in Kenya is
Section 36(4) of the Central Bank of Kenya Act requires CBK to publish the lowest rate of interest it charges on loans to banks, and that rate is the central bank rate. The CBK says the MPC reviews and announces the central bank rate at least every two months, and that the direction and size of each move signal the monetary policy stance.
The central bank rate also anchors CBK’s money market operations. According to the CBK’s Central Bank Rate page:
- when CBK injects cash into the banking system through a reverse repo, the CBR is the lowest rate it will accept;
- when CBK withdraws cash through a vertical repo, the CBR is the highest rate it will pay on any bid; and
- the CBR is the base for all monetary policy operations, to give clarity and certainty.
The aim behind it is price stability. The CBK Act gives the Bank the job of keeping inflation low and stable, and the Cabinet Secretary for the National Treasury sets the inflation target at the start of each financial year. A higher central bank rate makes borrowing dearer and cools demand; a lower one makes credit cheaper to support growth.
Central bank rate Kenya history, 2022 to 2026
The table below copies the CBK’s published central bank rate record for every MPC decision from 2022. Dates are the meeting dates CBK lists.
| MPC date | CBR | Change |
|---|---|---|
| 26 January 2022 | 7.00% | Hold |
| 29 March 2022 | 7.00% | Hold |
| 30 May 2022 | 7.50% | +0.50 |
| 27 July 2022 | 7.50% | Hold |
| 29 September 2022 | 8.25% | +0.75 |
| 23 November 2022 | 8.75% | +0.50 |
| 30 January 2023 | 8.75% | Hold |
| 29 March 2023 | 9.50% | +0.75 |
| 26 June 2023 | 10.50% | +1.00 |
| 5 December 2023 | 12.50% | +2.00 |
| 6 February 2024 | 13.00% | +0.50 (peak) |
| 6 August 2024 | 12.75% | -0.25 |
| 8 October 2024 | 12.00% | -0.75 |
| 5 December 2024 | 11.25% | -0.75 |
| 5 February 2025 | 10.75% | -0.50 |
| 8 April 2025 | 10.00% | -0.75 |
| 10 June 2025 | 9.75% | -0.25 |
| 12 August 2025 | 9.50% | -0.25 |
| 7 October 2025 | 9.25% | -0.25 |
| 9 December 2025 | 9.00% | -0.25 |
| 10 February 2026 | 8.75% | -0.25 |
| 8 April 2026 | 8.75% | Hold |
| 9 June 2026 | 8.75% | Hold |
| 11 August 2026 | 8.75% | Hold |
| 7 October 2026 | 8.75% | Hold |
Read as a story, the record has three phases. Between May 2022 and February 2024 the MPC raised the rate from 7.00% to a peak of 13.00% as inflation and pressure on the shilling rose. From August 2024 it cut in ten steps to 8.75% by February 2026, a total of 4.25 percentage points. Since then it has held at 8.75% for four meetings in a row. Meetings where the table shows no change during the hiking phase (29 May, 9 August and 3 October 2023, and 3 April and 5 June 2024) are left out above for space.
Why the MPC held the central bank rate at 8.75% in October 2026
The MPC press release of 7 October 2026, signed by CBK Governor Dr Kamau Thugge as MPC chairman, gave these reasons for keeping the rate unchanged:
- Inflation within target: overall inflation was 6.8% in September 2026, up from 6.6% in August, with core inflation at 4.0% and non-core at 14.0%. The CBK Key Rates panel now shows October inflation at 7.3%.
- Oil risk: the Committee pointed to higher energy prices from the conflict in the Middle East and said it would keep watching global oil prices and any second-round effects on inflation.
- Growth: 2026 growth was revised up to 5.0% from 4.9%, with 5.3% projected for 2027.
- Credit: private sector credit growth reached 10.6% in September 2026, while average bank lending rates were 14.4%, down from 17.2% in November 2024.
- Banks and reserves: gross non-performing loans fell to 13.9% of loans, and reserves stood at USD 14,702 million, or 5.9 months of import cover.
The MPC concluded that the 8.75% stance was appropriate to keep inflation expectations anchored and the exchange rate stable, and said it stands ready to act if needed. For the market reaction and dates, see our note on the next MPC meeting in December 2026.
How the central bank rate affects your loan and savings
The central bank rate is not the rate you pay. Banks add their own costs, risk premium and fees on top. The gap is visible in CBK’s own numbers: with the CBR at 8.75%, the CBK Key Rates panel showed an average lending rate of 14.4% and an average savings rate of 3.53% for September 2026. Here is how a change usually travels.
| Product | What a CBR cut tends to do | What to check |
|---|---|---|
| Bank loans and mortgages | Variable rates can fall, but only when your bank reprices | Your loan’s pricing formula and the bank’s published notice |
| Treasury bills | Yields usually ease; the 91-day bill was 8.750% at the 9 November 2026 auction | CBK auction results each week |
| Money market funds | Returns drift lower with T-bill yields | The fund’s daily yield |
| Fixed deposits and savings | New deposit offers tend to fall | Rates offered at renewal |
A simple worked example shows why it matters. On a KSh1,000,000 reducing-balance loan, each one percentage point on the interest rate adds up to about KSh10,000 in interest in the first year (less as the balance falls), before fees. So the 4.25-point fall in the central bank rate since 2024 would matter a great deal, but only if your lender passed it on. CBK’s data shows average lending rates fell by about 2.8 points over that period, less than the CBR cut, which is why Treasury has pushed banks to lower rates further (see our report on lending rates stuck at 14.4%).
To see how one lender builds its price, read our page on Equity Bank loan interest rates. Savers can compare yields on the T-bill and money market fund rates tracker, and homebuyers can compare lenders on mortgage rates in Kenya.
Where to check the central bank rate and the next MPC date
The official source is the CBK website. Its Key Rates panel, shown on most pages, gives the current central bank rate with the date it took effect, plus KESONIA (the Kenya Shilling Overnight Interbank Average, 8.7513% on 11 November 2026), the CBK discount window rate (9.25%), the latest 91-day T-bill rate and the latest inflation figure. The full history sits under Rates, then Central Bank Rate, and each decision has a signed MPC press release under Press Releases.
The CBK notice dated 9 November 2026 says the next MPC meeting will be held on Wednesday, 9 December 2026. The decision is normally published as a press release the same day, and CBK lists an MPC press briefing among its quick links.
Frequently asked questions
What is the current central bank rate in Kenya?
The central bank rate is 8.75%. The MPC set it at that level on 10 February 2026 and kept it there on 8 April, 9 June, 11 August and 7 October 2026, according to the CBK’s Central Bank Rate table.
Who sets the central bank rate in Kenya?
The Monetary Policy Committee of the Central Bank of Kenya sets it. The CBK Governor chairs the Committee, and the CBK says the rate is reviewed and announced at least every two months.
When is the next MPC meeting?
CBK has announced the next MPC meeting for Wednesday, 9 December 2026. Check the CBK Press Releases page that day for the decision.
What was the highest central bank rate in Kenya?
Since 2008 the highest central bank rate in the CBK table was 18.00%, held from December 2011 to June 2012. In the most recent cycle the peak was 13.00%, set on 6 February 2024.
Does a lower central bank rate mean my loan gets cheaper straight away?
No. Your bank decides when and how far to reprice, based on your loan contract. CBK data shows average lending rates were 14.4% in September 2026 even with the CBR at 8.75%, so ask your lender in writing how a change affects your rate.
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