Kenya’s central bank has lowered its benchmark lending rate to 9.75% from 10.00%, marking its sixth consecutive rate cut.
The Monetary Policy Committee announced the move on Tuesday, signalling continued efforts to stimulate private sector lending and bolster economic activity.
In a statement, the bank said there was room for further easing of its policy stance to support earlier measures aimed at reviving growth.
“This adjustment is intended to enhance credit flow to businesses and energise broader economic momentum,” the central bank noted.
The decision followed a divided forecast among economists, with Reuters reporting that of seven polled, three expected a cut, three anticipated no change, and one predicted a hike.
The rate cut reflects a delicate balancing act as the country navigates inflationary concerns and seeks to fuel investment amid global economic uncertainty.
Analysts say the sustained easing suggests a focus on maintaining liquidity while cautiously managing financial stability.
The central bank’s consistent actions underline its commitment to counter sluggish lending and revitalise a fragile economic recovery.
Markets and businesses will be closely watching the coming months to assess the impact of the new rate on credit access and growth.
