Kenya’s Central Bank Keeps Key Lending Rate Unchanged at 7pct

The main goal of the monetary policy is to maintain price stability and support economic growth by controlling the money supply in the economy.

Patrick Njoroge Photographer: Luis Tato/Bloomberg

The Central Bank of Kenya left its key lending rate unchanged Thursday saying policy measures adopted since March were having the intended effect on the economy.

The regulator further said the measures will be augmented by the announced fiscal measures by National Treasury in the Budget Statement for FY2020/21, to stimulate the economy.

CBK’s Monetary Policy Committee, therefore, decided to retain the Central Bank Rate (CBR) at 7.00 percent.

The MPC met Thursday to assess the outcomes of its policy measures that have been deployed since March to mitigate the adverse economic effects and financial disruptions.

Treasury’s policy measures, “In particular, the Economic Stimulus Programme targets to support growth of key sectors of the economy including agriculture and food security, infrastructure development, tourism, manufacturing, education, health, information and communications, and the MSMEs,” said the MPC in its statement.