Through the Kenya Bankers Association, commercial banks have appealed to the Central Bank of Kenya to leave the Central Bank Rate unchanged at 8.75% when the Monetary Policy Committee meets next week, arguing that recent price and exchange‑rate trends give room for a steady stance.

The association says that keeping the rate steady would help preserve the momentum in private‑sector lending that has emerged after earlier rate cuts, supported by lower Treasury bill yields and a calmer government‑securities market.

Inflation remains inside the Central Bank’s target band, with consumer‑price growth recorded at 6.8% in September, a modest rise from 6.6% in August, driven mainly by food and transport costs.

KBA notes that most price pressure is supply‑side and that weak demand limits the risk of a rapid price surge, expecting inflation to ease as food supplies improve, although global oil prices and weather patterns still pose risks.

The banks point to a robust macro backdrop, with GDP expanding by 5.3% in the first quarter of 2026 compared with 4.9% a year earlier, while warning that higher fuel costs, slower global growth and anticipated El Niño rains could threaten the recovery.

A relatively stable shilling also underpins the request; foreign‑exchange reserves were about $15.04 billion (Sh1.95 trillion) at the end of September, covering roughly 6.1 months of imports and offering a cushion against external shocks.

Nevertheless, KBA cautions that prolonged oil‑price volatility and a widening current‑account deficit could pressure both the exchange rate and inflation, making the MPC’s decision a balancing act between growth support and price stability.

If the committee leaves the rate at 8.75%, it would be the fourth consecutive meeting without a change, extending the recent period of monetary‑policy stability after a series of cuts.