The Central Bank of Kenya kept its benchmark interest rate unchanged at 8.75% on August 11th, 2026, marking a third consecutive pause. Policymakers said the current monetary policy stance remains appropriate to safeguard both price stability and the exchange rate. Headline inflation rose to 6.5%, fueled by higher fuel prices that increased transportation and food costs, but it stayed within the bank’s target band of 5% ± 2.5%. At the same time, economic growth strengthened to 5.3% in the first quarter of 2026, up from 4% in the previous quarter. Looking ahead, inflation is projected to remain within the target range in the near term, assuming tensions in the Middle East ease. Nonetheless, risks remain elevated as the intermittent US-Iran conflict continues to disrupt global energy and fertilizer markets.