The Central Bank of Kenya (CBK) has maintained its benchmark interest rate at 8.75 percent. This decision comes amidst escalating global risks, particularly those stemming from the ongoing conflict in the Middle East.

• The Central Bank Rate (CBR) remains at 8.75%.
• The decision was made by the Monetary Policy Committee (MPC) of the CBK.
• Rising global oil and fertiliser prices, influenced by Middle East instability and disruptions to key trade routes, are key concerns.

The World Bank has downgraded its 2026 economic growth projection for sub-Saharan Africa by 0.3 percentage points, citing increasing geopolitical risks and global shocks.

• Economic recovery in the region is showing signs of stalling as growth is projected to hold at 4.1 percent, the same as in 2025.
• The World Bank, in its latest Africa Economic Update, warned that rising costs for food, fuel, and fertilizer, along with tighter financial conditions, could spike inflation.
• Inflation is projected to rise to 4.8 percent in 2026, largely due to the conflict in the Middle East, and declining external financing is pressuring low-income countries.

The Energy and Petroleum Regulatory Authority (EPRA) is threatening severe penalties, including hefty fines and license revocation, against oil marketing companies accused of hoarding fuel and overcharging customers.

• Companies found hoarding petroleum products face fines of at least Sh1 million or imprisonment of up to one year, or both.
• EPRA is targeting oil marketing companies (OMCs) and specifically named its Acting Managing Director, Pius Mwendwa, in its warning.
• The regulator cited reports of fuel shortages in various parts of the country, attributing them to deliberate actions by some marketers rather than inadequate national stocks.