CBK Holds Rate at 8.75% as Inflation Tests the Top of Target Band

The Central Bank of Kenya held its benchmark lending rate unchanged at 8.75% during its Monetary Policy Committee meeting on June 9, 2026 — the second consecutive session in which the rate was left on hold after an extended easing cycle that had previously delivered nine successive cuts. CBK Governor Kamau Thugge said the current policy stance is appropriate to keep inflation expectations anchored.

The End of an Easing Marathon

The nine-cut cycle that preceded the current pause was one of the most aggressive monetary easing campaigns in Kenya's recent history. The Central Bank Rate was pared down from a peak of 13% in early 2024 all the way to 8.75%.

Inflation Climbs, Then Eases Back

Headline inflation reached 6.7% in May 2026, the highest monthly reading since January 2024, sitting uncomfortably close to the upper boundary of the CBK's 2.5%–7.5% target range. In June 2026, headline inflation eased to 6.4%, providing some relief to the Monetary Policy Committee.

What Borrowers Should Expect

For Kenyan households and businesses navigating the current credit environment, the hold at 8.75% signals that borrowing costs are unlikely to change materially in the short term. Economists describe the CBK as being firmly in a data-dependent holding pattern.