FX.co ★ Kenya Delivers 7th Straight Rate Cut

In August 2025, the Central Bank of Kenya implemented a further reduction in its benchmark interest rate, decreasing it by 25 basis points to 9.50%. This marks the seventh consecutive reduction. The annual inflation rate in Kenya rose slightly to 4.1% in July 2025, up from June's figure of 3.8%, although it remains within the central bank's target range of 2.5% to 7.5%. Governor Kamau Thugge stated that the Monetary Policy Committee decided to cut rates to sustain lending to the private sector and spur economic growth, while keeping inflation expectations stable and maintaining a steady exchange rate. Since August 2024, the central bank has cumulatively lowered borrowing costs by 350 basis points.