NAIROBI, Kenya, Feb 9 – The Kenya Bankers Association (KBA) has urged the Central Bank of Kenya (CBK) to maintain the benchmark lending rate at 9 percent ahead of the Monetary Policy Committee (MPC) meeting scheduled for tomorrow.
KBA said keeping the rate unchanged would allow full transmission of earlier cuts, support the ongoing decline in interest rates, and enable a smooth shift to the risk-based lending framework.
“Keeping the CBR unchanged will allow the full transmission of previous cuts and ensure a non-disruptive transition of Kenya shilling variable-rate loans to the revised risk-based pricing framework by end February 2026,” KBA said in a statement.
In December, CBK reduced the benchmark rate by 25 basis points to 9 percent, its second consecutive cut, citing easing inflation, improved private sector credit uptake, and a stable exchange rate.
At the time, the MPC said the move was aimed at stimulating lending and supporting economic growth, noting that inflation risks had moderated.
