Bankers urge CBK to hold its benchmark rate at 8.75% at 7 October meeting

The Kenya Bankers Association (KBA) has asked the Central Bank of Kenya (CBK) to keep its benchmark Central Bank Rate (CBR) at 8.75 per cent when the Monetary Policy Committee (MPC) meets on Wednesday, 7 October 2026, according to reports published on 2 October.

The KBA's Centre for Research on Financial Markets and Policy said that, with inflation within the target range and exchange-rate stability sustained, "sustaining the current stance of monetary policy, to anchor the recovery in private sector credit and economic activity is appropriate", as quoted by Kenyans.co.ke.

Inflation near the ceiling

The request comes as prices rise faster. The Kenya National Bureau of Statistics (KNBS) reported annual inflation of 6.8 per cent in September 2026, up from 6.6 per cent in August. The CBK's target band is 2.5 per cent to 7.5 per cent. The KBA noted that headline inflation was 4.3 per cent in February.

According to the KNBS figures as reported by Kenyans.co.ke, food and non-alcoholic beverage prices were up 9.5 per cent over 12 months and transport costs 15.6 per cent. Core inflation was 4.0 per cent and non-core inflation 14.0 per cent.

The KBA argued that tightening could threaten the recovery given higher fuel and food prices, rising production costs, weaker global growth and the El Niño rains expected from October 2026 into the first quarter of 2027. Kenyans.co.ke reports that the KBA's forecast showed inflation could ease as food supply improves with the onset of harvests in major agricultural regions.

Growth and the last decision

The KBA cited real GDP growth of 5.3 per cent in the first quarter of 2026, against 4.9 per cent a year earlier.

The CBK's own website shows the MPC retained the CBR at 8.75 per cent on 11 August 2026 and lists 7 October 2026 as the next meeting date.

What to watch

The KBA's call is a recommendation; the decision rests with the MPC.