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 July 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.

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Kenya Interest Rate



Calendar GMT Actual Previous Consensus TEForecast
2022-01-26 02:40 PM 7% 7% 7% 7%
2022-03-29 01:30 PM 7% 7% 7% 8%
2022-05-30 02:20 PM 7.5% 7% 7% 7%


Related Last Previous Unit Reference
Interest Rate 7.50 7.00 percent May 2022
Interbank Rate 4.60 4.67 percent May 2022
Money Supply M1 1866.65 1796.33 KES Billion Apr 2022
Money Supply M2 3483.81 3410.16 KES Billion Apr 2022
Money Supply M3 4318284.69 4221242.78 KES Million Apr 2022
Foreign Exchange Reserves 13197.90 12590.00 USD Million Apr 2022
Central Bank Balance Sheet 1471985.56 1498936.63 KES Million Jan 2022
Loans To Private Sector 2326105.00 2335247.00 KES Million Apr 2017

Kenya Interest Rate
In Kenya, interest rates decisions are taken by The Monetary Policy Committee (MPC) of the The Central Bank of Kenya. The official interest rate since August 2005 is the Central Bank Rate (CBR), which replaced the 91-day Treasury Bill (TB) rate.
Actual Previous Highest Lowest Dates Unit Frequency
7.50 7.00 84.67 0.83 1991 - 2022 percent Daily

News Stream
Kenya Unexpectedly Hikes Interest Rate to 7.5%
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.
2022-05-30
Kenya Holds Key Interest Rate at 7%
The central bank of Kenya kept its benchmark interest rate at 7% during its March 2022 meeting, as expected, to continue supporting the domestic recovery. Policymakers said that the current accommodative monetary policy remains appropriate as inflation expectations remain anchored within the target range supported by the government's policy interventions. At the same time, leading economic indicators show improved economic performance. Headline inflation fell to a 16-month low of 5.1% in February of 2022 from 5.4% in January, mainly due to the effect of government measures to stabilize fuel prices and electricity tariffs. Thus, inflation is expected to remain within the target range in the near term.
2022-03-29
Kenya Holds Key Interest Rate Steady at 7%
The central bank of Kenya retained its benchmark interest rate at 7% during its January 2022 meeting, as expected, to continue supporting the domestic recovery as inflation expectations remain well anchored. Policymakers noted that inflation eased to an 11-month low of 5.7% in December from 5.8% in November, mainly due to lower food prices, and it is expected to remain within the central bank’s target range of 2.5%-7.5%. Meanwhile, the recently released GDP data for the third quarter together with leading indicators confirm that the Kenyan economy rebounded strongly in 2021, following the easing of COVID-19 restrictions and the impact of government interventions. The economy is expected to remain strong in 2022, supported by the continued strong performance of the services sector, recovery in agriculture, and an improvement in global demand. The bank's Monetary Policy Committee, however, warned that there were elevated global risks with the potential to impact the domestic economy.
2022-01-26