Kenya Bankers Association has advised the Monetary Policy Committee (MPC) to keep the CBR unchanged at 8.75% to help anchor the ongoing recovery in private sector credit and sustain economic activity.

In its latest Research Note, the banking lobby says the current monetary policy stance should be sustained to support the recovery in private sector credit and economic activity.

It notes that headline inflation remains within the target range, although it has edged upwards from 4.3% in February to 6.8% in September 2026, approaching the upper limit of 7.5%. The increase has been driven mainly by food and transport costs.

Economic activity remains resilient, with real GDP growing by 5.3% in the first quarter of 2026, up from 4.9% in the corresponding quarter of 2025.

However, it flags emerging risks, including higher fuel and food prices, elevated production and transport costs, weaker global growth and the expected El Niño rains.

The Research Note further observes that the monetary policy stance, favourable interest-rate differentials and declining Treasury bill yields are supporting credit expansion and creating scope for lending rates to continue declining in the near term.

KBA also points to continued exchange-rate stability as an important buffer against imported inflation, while cautioning that sustained oil price volatility remains a key risk to the external sector.

MPC meeting is scheduled for Wednesday, October 7, 2026.