The central bank of Kenya kept its benchmark interest rate unchanged at 7% during its September 2020 meeting, as widely expected, despite a still-challenging economic backdrop due to Covid-19. Policymakers said that the current accommodative monetary policy stance remains appropriate, as policy measures implemented since March were having the intended effect on the economy, which will be reinforced by the implementation of fiscal measures announced in the FY2020/21 government budget. Policymakers added that leading indicators for the Kenyan economy for the third quarter point to a strong recovery in economic activity, mainly supported by agriculture, increased activity in key sectors such as services with the easing of Covid-19 restrictions, normalisation of exports and government intervention to mitigate the impact of the pandemic. Meanwhile, the inflation rate remains well anchored and it is projected to remain within the target range of 2.5-7.5% in the near term.

Interest Rate in Kenya averaged 13.51 percent from 1991 until 2020, reaching an all time high of 84.67 percent in July of 1993 and a record low of 0.83 percent in September of 2003. This page provides the latest reported value for - Kenya Interest Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Kenya Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on October of 2020. source: Central Bank of Kenya

Interest Rate in Kenya is expected to be 7.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Kenya to stand at 6.75 in 12 months time. In the long-term, the Kenya Interest Rate is projected to trend around 6.50 percent in 2021 and 6.25 percent in 2022, according to our econometric models.

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Kenya Interest Rate

Actual Previous Highest Lowest Dates Unit Frequency
7.00 7.00 84.67 0.83 1991 - 2020 percent Daily


Calendar GMT Actual Previous Consensus TEForecast
2020-05-27 01:30 PM 7% 7% 7% 7%
2020-06-25 02:00 PM 7% 7% 6.75%
2020-07-29 01:30 PM 7% 7% 7%
2020-09-29 01:30 PM 7% 7% 7% 7%


News Stream
Kenya Holds Key Interest Rate Steady at 7%
The central bank of Kenya kept its benchmark interest rate unchanged at 7% during its September 2020 meeting, as widely expected, despite a still-challenging economic backdrop due to Covid-19. Policymakers said that the current accommodative monetary policy stance remains appropriate, as policy measures implemented since March were having the intended effect on the economy, which will be reinforced by the implementation of fiscal measures announced in the FY2020/21 government budget. Policymakers added that leading indicators for the Kenyan economy for the third quarter point to a strong recovery in economic activity, mainly supported by agriculture, increased activity in key sectors such as services with the easing of Covid-19 restrictions, normalisation of exports and government intervention to mitigate the impact of the pandemic. Meanwhile, the inflation rate remains well anchored and it is projected to remain within the target range of 2.5-7.5% in the near term.
2020-09-29
Kenya Leaves Monetary Policy Unchanged
The central bank of Kenya left its benchmark interest rate unchanged at 7% during its July 2020 meeting. Policymakers said that the package of policy measures adopted since March to cushion the impact of the coronavirus pandemic were having the intended effect and added that it will be reinforced by implementations of fiscal measures announced in the FY2020/21 government budget. The Committee noted that the inflation rate remains well anchored and it is projected to remain within the target range of 2.5-7.5% in the near term. Policymakers underscored the uncertainty regarding the increasing rate of coronavirus cases. The Committee said that they will continue to monitor the impact of the policy measures so far, developments in both the global and domestic economy and will take any measures if needed.
2020-07-29
Kenya Holds Key Interest Rate Steady at 7%
The central bank of Kenya kept its benchmark interest rate unchanged at 7% during its June 2020 meeting. Policymakers considered that the package of policy measures adopted since March to cushion the hit from the pandemic were having the intended effect, which will be reinforced by fiscal measures announced in the government's budget for FY2020/2021. The bank said that most recent leading indicators point to strong growth in the Q1 of 2020, while those for the Q2 suggest the impact of the Covid-19 mostly in April, with evidence of recovery in May, supported by higher agricultural output and exports. Meanwhile, inflation is projected to remain within the target range of 2.5-7.5% in the short term. The Committee also welcomed the extension of the central bank's emergency measures on June 24, in particular, those to facilitate official and personal transfers to vulnerable households.
2020-06-25
Kenya Holds Key Interest Rate Steady at 7%
The Central Bank of Kenya kept its benchmark interest rate unchanged at 7% during its May 2020 meeting, as widely expected, after cutting it by 25 bps in April. Policymakers said that the current accommodative monetary policy stance remains appropriate, as policy measures adopted in March and April were having the intended effect on the economy and are still being transmitted. The Committee reaffirmed its growth forecast of 2.3% for 2020, far below a 5.4% expansion in 2019, as economic activity is expected to weaken in the second quarter due to the adverse impact of the containment measures, particularly in transport and storage, trade and accommodation and restaurants. Meanwhile, inflation is expected to remain within the target band of 2.5-7.5% in the near term, supported by the favourable weather conditions, lower international oil prices, the reduction of VAT and muted demand pressures.
2020-05-27

Kenya Interest Rate
In Kenya, interest rates decisions are taken by The Monetary Policy Committee (MPC) of the The Central Bank of Kenya. The official interest rate since August 2005 is the Central Bank Rate (CBR), which replaced the 91-day Treasury Bill (TB) rate.