Central Bank lowers key rate to 9.5pc
Business
By
Sofia Ali
| Aug 12, 2025
Central Bank of Kenya's Monetary Policy Committee has lowered its benchmark rate to 9.50 per cent as it continued its policy this year to stimulate lending by banks and support economic activity.
During its meeting on Tuesday, the committee cut the Central Bank Rate by 25 basis points from the 9.75 set in its June 11 meeting, citing favourable inflation and positive economic growth outlook in the short term.
"The recently released GDP data for the first quarter of 2025 showed continued resilience of the Kenyan economy, with real GDP growing by 4.9 per cent," CBK Governor Kamau Thugge said in a statement after the meeting.
"This reflected robust performance of agriculture, and recovery in industrial activity, particularly construction. Leading indicators of economic activity point to improved performance in the second quarter of 2025."
READ MORE
Lamu Port roars to life as nine mega ships scheduled to call
Asal counties to benefit from Sh15b off-grid solar project
Farmers earn Sh882 million at tea auction
London forum to chart Africa's place in shifting global landscape
KTDA hydropower plant connected to the national grid
Harnessing devolution to transform agriculture
Chinese firm to revive fluorspar operations in Kerio Valley
Why counties should rethink their infrastructure financing
Port of Mombasa caught in tariff wars crossfire
Homa Bay traders make a kill as curtains fall on Devolution Conference
He said growth in commercial banks’ lending to the private sector continued to improve and stood at 3.3 per cent in July 2025 compared to 2.2 per cent in June.