NAIROBI, Feb. 10 (Xinhua) -- The Central Bank of Kenya (CBK) on Tuesday reduced its benchmark lending rate to 8.75 percent from 9 percent amid declining inflation.
Kamau Thugge, governor of CBK, who chaired the Monetary Policy Committee (MPC) meeting, noted that there was scope for easing the monetary policy stance by reducing the Central Bank Rate by 25 basis points.
"This will augment the previous policy actions aimed at stimulating lending by banks to the private sector and supporting economic activity, while ensuring inflationary expectations remain firmly anchored, and the exchange rate remains stable," Thugge said in a statement released in Nairobi, Kenya's capital.
The CBK official added that Kenya's overall inflation declined to 4.4 percent in January 2026 from 4.5 percent in December 2025, and remained below the mid-point of the target range of 2.5 to 7.5 percent.
He added that the MPC will closely monitor the impact of these policy decisions as well as developments in the global and domestic economy and stands ready to take further action as necessary in line with its mandate. ■