The Kenya Bankers Association (KBA) has urged the Central Bank of Kenya (CBK) to maintain its current benchmark lending rate of 9 per cent at the upcoming Monetary Policy Committee (MPC) meeting on Tuesday, February 10. This recommendation comes amidst concerns over rising inflation risks, particularly from volatile food prices.

• The KBA advises maintaining the rate to allow previous cuts to fully transmit, support declining lending rates, and facilitate a smooth transition to risk-based pricing.
• The banking industry representatives highlighted a widening divergence between core and non-core inflation, with food prices being the primary driver of volatility.
• This plea follows a previous rate cut in December, where the MPC lowered the Central Bank Rate (CBR) by 25 basis points to 9.0 per cent from 9.25 per cent.