The Central Bank of Kenya’s Monetary Policy Committee (MPC) meets today, Wednesday, October 7, 2026, to decide whether to move the Central Bank Rate (CBR), which currently stands at 8.75 percent. Analysts and bankers largely expect a hold, with inflation at a one-year high of 6.8 percent in September.
By the 254.ke Newsroom.
What is the CBK deciding today?
The MPC, chaired by CBK Governor Kamau Thugge, sets the CBR, the benchmark that guides what commercial banks charge for loans. The rate was cut to 8.75 percent in February 2026 and has since been held, most recently at the committee’s August 11 meeting. The central bank confirmed on its website that the next sitting would be held on October 7.
Why are most analysts expecting a hold?
Inflation is moving up, not down. Year-on-year inflation rose to 6.8 percent in September from 6.6 percent in August, the highest in a year, according to figures reported by Nairametrics and the Rio Times. Core inflation, which strips out volatile food and energy prices, climbed to 4.0 percent from 3.4 percent.
That is still inside the CBK’s 2.5 to 7.5 percent target band, but September was the sixth straight month above the 5 percent midpoint. A cut would be hard to justify while prices are accelerating.
Key numbers ahead of the decision
| Indicator | Latest reading |
|---|---|
| Central Bank Rate | 8.75% (held since the February cut) |
| Inflation, September 2026 | 6.8% (August: 6.6%) |
| Core inflation, September 2026 | 4.0% (August: 3.4%) |
| CBK target range | 2.5% to 7.5% |
| Shilling, October 1 | About KSh129.71 per US dollar |
What did banks say before the meeting?
The Kenya Bankers Association has argued in recent meetings for leaving the CBR unchanged, saying stability would support private sector lending, which has picked up after earlier rate reductions. Before the August decision it said keeping the rate at 8.75 percent “would be appropriate” to support credit growth. A report from Streamlinefeed says banks are again urging a hold this week, warning that tightening could restrict lending to businesses.
The CBK itself has cited the need to keep inflation expectations anchored and the exchange rate stable, along with global uncertainty from oil prices and the Middle East conflict.
What does the decision mean for borrowers?
A hold would leave bank lending rates broadly where they are. A rise would push up the cost of new and variable-rate loans, while a cut, considered unlikely, would ease them. Banks now price loans using a published formula tied to the CBR, so any change feeds through relatively quickly to borrowers.
The decision also matters for household costs. For context on what is already getting more expensive, see our report on August 2026 inflation and the latest EPRA fuel price review.
FAQ: Kenya’s CBK rate decision
When does the CBK announce its rate decision?
The MPC meets on October 7, 2026. The CBK typically releases its statement after the meeting on the same day; check the Central Bank of Kenya website for the official press release.
What is the current Central Bank Rate in Kenya?
The CBR is 8.75 percent as of October 7, 2026, before the committee’s announcement.
What is Kenya’s inflation rate now?
Year-on-year inflation was 6.8 percent in September 2026, up from 6.6 percent in August.
Will my loan repayments change?
Only if the CBK changes the CBR. Loans priced off the benchmark would adjust after any move; fixed-rate loans would not.
This article will be updated once the MPC announces its decision.
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