Central Bank of Kenya’s MPC retains CBR at 8.75% on Oct 7 as core inflation rises

On October 7, 2026 the Central Bank of Kenya’s Monetary Policy Committee retained the Central Bank Rate at 8.75 percent. This follows a rise in overall inflation to 6.8% in September 2026, driven by higher core inflation (4.0%), prompting continued attention to monetary policy settings.

A hold at 8.75% is likely to keep official short-term policy anchored, limiting immediate downward pressure on short-dated government yields and bank funding costs. The decision also supports near-term exchange-rate stability, but any future signal toward tightening would raise local borrowing costs and could strengthen the shilling conditionally, depending on global dollar moves and fiscal developments.

Next monthly CPI release and the CBK’s subsequent policy communication for guidance on future rate moves.