NAIROBI, Kenya, April 9 – The Central Bank of Kenya (CBK) has retained the Central Bank Rate (CBR) at 8.75 percent, citing rising global risks linked to the ongoing Middle East conflict.
The bank’s Monetary Policy Committee (MPC) said the decision aims to anchor inflation expectations and maintain exchange rate stability amid pressure from higher global oil and fertiliser prices.
“Having considered these developments, the Committee concluded that the current monetary policy stance… remains appropriate to ensure that inflation expectations remain anchored within the target range,” the MPC said.
The committee warned of potential second-round effects from rising international oil prices, which could push up overall inflation.
Kenya has been affected by disruptions in key sectors including oil supply, horticulture, and tourism, following instability in the Middle East that has impacted major logistics and aviation routes.
The situation has also been exacerbated by disruptions along critical trade routes such as the Strait of Hormuz, a key global oil transit corridor.
CBK said it will continue to monitor developments in both the global and domestic economy and stands ready to take further action if necessary.
