Latest bank decision: At its meeting on 26 March, the Central Bank decided to cut the target for the overnight...
Central Bank Rate in Kenya
The Central Bank Rate (%, eop) ended 2024 at 11.25%, down from the 12.50% end-2024 value and down from the reading of 8.50% a decade earlier. For reference, the average interest rate in Sub-Saharan Africa was 14.31% at end-2024. For more information on interest rate, visit our dedicated page.
Kenya Interest Rate Chart
Note: This chart displays Policy Interest Rate (%) for Kenya from 2014 to 2025.
Source: Macrobond.
Kenya Interest Rate Data
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| Central Bank Rate (%, eop) | 7.00 | 8.75 | 12.50 | 11.25 | 9.00 |
Central Bank of Kenya decreases rates in February
Monetary policy easing continues: At its meeting on 10 February, the Central Bank of Kenya (CBK) decided to lower the Central Bank Rate (CBR) by 25 basis points to 8.75% from 9.00%.
Below-target inflation drives cut: The Bank concluded that there was scope for a further easing in the monetary policy stance, as inflation has recently been slightly below the 5.0% midpoint of the CBK’s target range, while core inflation has been less than half the midpoint.
CBK set to cut rates further: The CBK did not provide specific forward guidance on the future direction of interest rates. All our panelists expect further cuts this year, with the spread ranging from 25 to 75 basis points. Expected rate cuts from the U.S. Federal Reserve will allow the CBK to reduce its own rate further without putting excessive pressure on the shilling. The Committee will reconvene in April.
Consensus Forecasts and Projections for the next ten years
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Kenyan interest rate projections for the next ten years from a panel of 5 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable interest rate forecast available for Kenyan interest rate.
Download one of our sample reports to visualize what a Consensus Forecast is and see our Kenyan interest rate projections.
Want to get access to the full dataset of Kenyan interest rate forecasts? Send an email to info@focus-economics.com.
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