The Kenya Bankers Association (KBA) has formally requested that the Central Bank of Kenya keep the Central Bank Rate at 8.75% when the Monetary Policy Committee meets on October 7, 2026.

KBA’s Centre for Research on Financial Markets and Policy argues that keeping the rate unchanged would sustain the recovery in private‑sector credit and maintain overall economic activity.

The association notes that headline inflation, while rising from 4.3% in February to 6.8% in September, remains inside the CBK’s 2.5%‑7.5% target band.

Food and transport costs are the main drivers of the price increase, with food inflation at 9.5% and transport inflation at 15.6% in September.

Despite higher prices, KBA says demand pressures are limited and expects inflation to ease as harvests improve food supply in major agricultural regions.

The lobby also points to strong economic growth – real GDP rose 5.3% in Q1 2026 versus 4.9% in the same period a year earlier – as a justification for maintaining the current stance.

KBA warns that the recovery faces risks from higher fuel and food prices, rising production and transport costs, weaker global growth and the anticipated El Niño rains from October 2026 into early 2027.

The association adds that exchange‑rate stability, favourable interest‑rate differentials and falling Treasury bill yields are currently cushioning the economy against imported inflation and supporting credit growth.

KBA’s recommendation follows the MPC’s decision in August to keep the rate at 8.75%, a move the bank said was intended to anchor inflation expectations amid global uncertainties and higher oil prices.