The Kenya Bankers Association (KBA) has urged the Central Bank of Kenya (CBK) to maintain the Central Bank Rate (CBR) at 9.00% when the Monetary Policy Committee (MPC) meets today, the 10th of February, 2026, citing a supportive macroeconomic environment that warrants policy rate stability.
The bankers’ association noted that although inflation remains within the CBK’s target range, it is likely to edge higher, mainly driven by food supply pressures. As of January 2026, overall inflation stood at 4.4%, down from 4.5% in December 2025.
KBA also pointed to the domestic economic growth which continues to benefit from the reducing interest rates. In the third quarter of 2025, Kenya’s GDP grew by 4.9%, compared to 4.2% in a corresponding period in 2024.
KBA further stated that maintaining the CBR at 9.00% will give room for the reflection of the effect of the previous rate cuts in the market. Additionally, private sector credit growth is edging up cautiously as banks remain vigilant on non-performing loans. As of November 2025, commercial banks’ lending to the private sector grew by 6.3%, up from 5.9% in October 2025, while the ratio of gross non-performing loans to gross loans eased to 16.5% from 16.7%.
The association highlighted exchange rate stability, primarily supported by a steady current account deficit, strong diaspora remittances, and robust foreign exchange reserves. According to the CBK’s weekly bulletin, the Kenya shilling exchanged at KES 129.02 per U.S dollar on February 5, 2026, while foreign exchange reserves stood at USD 12.39 billion, equivalent to 5.3 months of import cover, well above the statutory minimum of 4 months.
KBA’s View on the Policy Rate
Based on these factors, KBA concluded that keeping the policy rate static would bolster financial stability and pave way for smooth transition of banking sector to the new revised risk-based pricing model scheduled to complete by February 28, 2026.
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