Contact
Finance

CBK holds policy rate at 8.75% as inflation edges to 6.5%

By Brian Kiprop 2 min read
CBK holds policy rate at 8.75% as inflation edges to 6.5%

Key points

  • CBK Monetary Policy Committee kept the Central Bank Rate at 8.75 per cent for the third consecutive meeting on 11 August 2026.
  • Overall inflation rose to 6.5 per cent in July from 6.4 per cent in June, still within the target band.
  • Core inflation was 3.2 per cent; non-core eased to 15 per cent; food inflation stayed elevated for staples such as potatoes, tomatoes and greens.
  • MPC cited global growth projected at 3.0 per cent in 2026 (from 3.5 per cent in 2025) and energy-price risks from Middle East conflict.

8.75 per cent for a third straight sitting — that is the Central Bank Rate the Monetary Policy Committee left unchanged on 11 August 2026 as it watches energy shocks and a July inflation print of 6.5 per cent, Eastleigh Voice reported.

MPC said the stance remains appropriate to keep inflation expectations anchored and support exchange-rate stability. Global growth is projected to slow to 3.0 per cent in 2026 from 3.5 per cent in 2025, largely on higher energy prices linked to Middle East conflict, while global inflation is expected to rise to 4.7 per cent from 4.1 per cent.

Food pressure, energy moderation

In Kenya, overall inflation edged up to 6.5 per cent from 6.4 per cent in June. Core inflation rose slightly to 3.2 per cent from 3.1 per cent; non-core eased to 15 per cent from 15.1 per cent. Food inflation remained elevated for Irish potatoes, tomatoes, kales, cabbages and onions, while lower energy prices helped moderate non-core pressures. Holding the rate signals a preference for stability over an immediate cut while external energy risk remains live.

Finance desk: Finance. Verified CBR level, meeting date and inflation stack from Eastleigh Voice/MPC summary; full communiqué tables control official detail.

Borrowers and banks will treat a third hold as a pause, not a pivot. The next MPC will still be priced off food prints and oil headlines more than campaign rhetoric.

Commercial banks will keep loan pricing sticky until the next MPC signal. Households already facing food inflation will feel the hold mainly through slow rate cuts rather than an immediate change in posted deposit rates.

Based on Eastleigh Voice reporting of the CBK MPC decision. Rates and forecasts are as published by the committee.