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08.04.202614:54:06UTC+00Kenya Halts Rate-Cut Cycle

The Central Bank of Kenya left its benchmark interest rate unchanged at 8.75% on April 8, 2026, halting a cycle of ten consecutive cuts that began in August 2024. Governor Kamau Thugge said the Monetary Policy Committee opted to pause in order to gauge the potential impact of the US-Israeli war on Iran on Kenya’s domestic economy. He noted that the conflict in the Middle East has disrupted global supply chains, sharply pushed up energy prices, and heightened risks to the global economic outlook. Kenya’s annual inflation rate edged up to 4.4% in March from a seven-month low of 4.3% in February, but remains below the 5% midpoint of the central bank’s target range.

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