Kenya Central Bank Cuts Benchmark Rate to 10% Amid Global Uncertainties

On April 8, 2025, Kenya's central bank cut its benchmark lending rate by 75 basis points to 10.0%, marking the fifth consecutive reduction aimed at stimulating economic activity amid global uncertainties. This decision comes despite a slight increase in inflation, which rose to 3.6% in March, remaining well within the target range. The bank's monetary policy committee noted that further easing could be implemented to encourage lending while maintaining exchange rate stability. Economic indicators point to a rebound, with GDP growth projected at 5.4% for 2025, supported by strong service sector performance and improving exports. The measures reflect a response to ongoing trade tensions and geopolitical risks impacting the global economy. Overall, the adjustments signal a proactive approach to foster growth in Kenya's economy despite external challenges.