Bankers want CBK to hold rate at 9pc ahead of MPC
KBA said keeping the rate unchanged would allow full transmission of earlier cuts, support the ongoing decline in interest rates, and enable a smooth shift to the risk-based lending framework. Kenya breaking news | Kenya news today |..
✨ Key Highlights
The Kenya Bankers Association (KBA) has urged the Central Bank of Kenya (CBK) to maintain the benchmark lending rate at 9 percent ahead of the upcoming Monetary Policy Committee (MPC) meeting. The KBA believes keeping the rate unchanged will allow for the full transmission of previous cuts and facilitate a smooth transition to risk-based lending.
- KBA recommends holding the benchmark lending rate at 9 percent.
- The Monetary Policy Committee (MPC) meeting is scheduled for tomorrow.
- The CBK last reduced the rate by 25 basis points to 9 percent in December.
- Maintaining the rate supports the shift to a risk-based lending framework by February 2026.
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Court Upholds Sh7 Fuel Levy; Govt Blocks Carbon Credits; Bankers Urge CBK to Hold Rate at 9pc - February 2026
The High Court upheld the Sh7 fuel levy hike, dismissing a petition that sought a refund for motorists for the increased road maintenance charge implemented in July 2024. The court ruled the government met constitutional standards for public participation. Separately, the Kenyan government denied Koko Networks approval to sell carbon credits internationally due to concerns over potential monopolization of the market. This decision hindered Koko's ability to subsidize its bioethanol cooking fuel, leading to its exit. In the financial sector, the Kenya Bankers Association (KBA) has urged the Central Bank of Kenya (CBK) to maintain the benchmark lending rate at 9 percent ahead of the Monetary Policy Committee (MPC) meeting. The KBA believes holding the rate will allow for the full transmission of previous cuts.
