CBK holds the Central Bank Rate at 8.75%: what it means for your loan, savings and prices
The Central Bank of Kenya kept its key interest rate unchanged at 8.75% on 7 October, while average lending rates sit around 14.4%. Here is what the rate is, why it matters to borrowers and savers, and what could change it.
On 7 October 2026, the Central Bank of Kenya's Monetary Policy Committee (MPC) kept the Central Bank Rate (CBR) at 8.75%. It had also held at 8.75% in April, when it said it was watching the impact of the Iran conflict.
The key numbers
| Measure | Latest |
|---|---|
| Central Bank Rate | 8.75% (held on 7 Oct 2026) |
| CBK discount window rate | 9.25% |
| Average bank lending rate | 14.4% (September 2026) |
| Inflation | 6.8% in September, 7.3% in October |
What the Central Bank Rate is
The CBR is the interest rate the Central Bank uses to signal how expensive money should be. Banks price their own loans with it in mind. When the CBK raises it, borrowing gets more expensive, people and businesses spend less, and inflation tends to slow. When it cuts, loans get cheaper and the economy tends to speed up.
What "holding" means for you
- Borrowers: your loan rate is unlikely to move because of this decision. The average bank loan still costs about 14.4% a year, far above the CBR, because banks add charges for their costs and your risk.
- Savers: deposit and money market fund rates also tend to stay put when the CBR is unchanged.
- Prices: the CBK is balancing two pressures: rising fuel prices pushing inflation up, and the need to keep credit flowing to businesses.
Tips if you have a loan
- Ask your bank whether your loan rate is fixed or variable, and how it is linked to the CBR.
- Compare the full cost of a loan, including fees, not just the headline rate.
- Check the CBK website for the date of the next MPC meeting.
