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

The Monetary Policy Committee (MPC) will closely monitor the impact of the policy measures, as well as developments in the global and domestic economy, and stands ready to take additional measures as necessary to support the economy hit by the COVID-19 pandemic.

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.