The central bank of Kenya raised its benchmark interest rate to 7.5% at its May 2022 meeting, surprising markets that expected it to remain steady at 7%. It marks the first rate hike since July of 2015, in order to further anchor inflation expectations amid strong price pressures due to an increase in commodity prices exacerbated by the conflict in Ukraine. The annual inflation rate in Kenya accelerated to a seven-month high of 6.47% in April of 2022, from 5.56% in the previous month, reflecting higher prices of basic food and fuels, but still within the bank’s 2.5% to 7.5% target band. Meanwhile, policymakers noted the Kenyan economy rebounded strongly in 2021 following the easing of COVID-19 restrictions, with real GDP growing by 7.5% from a contraction of 0.3% in 2020. The economy is expected to remain resilient in 2022, with continued strong performance of the services and manufacturing sectors despite the downside risks to global growth. source: Central Bank of Kenya
Interest Rate in Kenya averaged 13.18 percent from 1991 until 2022, reaching an all time high of 84.67 percent in July of 1993 and a record low of 0.83 percent in September of 2003. This page provides the latest reported value for - Kenya Interest Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Kenya Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on June of 2022.
Interest Rate in Kenya is expected to be 7.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Kenya Interest Rate is projected to trend around 8.00 percent in 2023 and 7.00 percent in 2024, according to our econometric models.