Nairobi, Kenya – Kenya’s central bank, in an effort to control inflation pressures, has decided to maintain its key interest rate at 10.50% for the second consecutive time. This rate was increased from 9.50% in June.
According to the country’s Monetary Policy Committee, inflation is currently within the set target range and is expected to decrease further due to anticipated decreases in food inflation.
The committee also acknowledged that the effects of the June 2023 tightening of monetary policy, aimed at anchoring inflation expectations, are still being felt throughout the economy.
Kenya’s inflation rate showed little change in September, remaining at 6.8% compared to 6.7% in August.
The increase in food inflation from 7.5% in August to 7.9% in September was mostly attributed to higher prices for certain vegetables, namely onions, Irish potatoes, and spinach.
Fuel inflation remained high at 13.1% in September, reflecting the upward trend of international prices.
Meanwhile, non-food non-fuel inflation remained stable at 3.7% in both September and August, a result of the impact of monetary policy measures and subdued demand.
The committee is scheduled to reconvene in December and is prepared to hold an earlier meeting if necessary.