Banks urge CBK to hold rate at 8.75pc over global risks
The KBA Centre for Research on Financial Markets and Policy said external shocks—including higher global oil prices and geopolitical tensions—pose upside risks despite inflation remaining within the target range. Kenya breaking news | Kenya news today |..
✨ Key Highlights
The Kenya Bankers Association (KBA) is urging the Central Bank of Kenya (CBK) to maintain the benchmark policy rate at 8.75 percent due to escalating global risks.
- The KBA cites rising global oil prices and geopolitical tensions as key external shocks posing upside risks to inflation and the Kenyan shilling.
- The lobby group, represented by the KBA Centre for Research on Financial Markets and Policy, also noted that while recent rate cuts have eased short-term interest rates, structural challenges are delaying their full impact on businesses and households.
- Pressure on the Kenyan shilling is also a concern, linked to a widening trade deficit and potential disruptions to diaspora remittances.
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KRA Gets Sh17.6bn to Increase Tax Collection - April 2026
The Kenyan Government has allocated an additional Sh17.6 billion to the Kenya Revenue Authority for the 2025/2026 financial year, aiming to boost tax collection and reduce public borrowing. Meanwhile, Kenyan Members of Parliament have summoned Cabinet Secretary Amina Wandayi to appear before a parliamentary committee amid a deepening fuel importation scandal and calls for his removal. At the same time, the Kenya Bankers Association is urging the Central Bank of Kenya to maintain the benchmark policy rate at 8.75 percent due to escalating global risks.
