The Central Bank of Kenya (CBK) has reduced the Central Bank Rate (CBR) by 25 basis points to 8.75 per cent, down from 9.00 per cent, in a strategic move aimed at stimulating private sector lending and supporting economic growth.
In a statement shared on its official X platform, CBK announced that the decision was reached during the Monetary Policy Committee (MPC) meeting held on Tuesday, February 10, 2026.The apex bank noted that after reviewing prevailing economic conditions, inflation trends, and overall financial stability, the Committee found room to ease the monetary policy stance further.
“Having considered these developments, the Committee therefore concluded that there was scope for a further easing of the monetary policy stance by reducing the CBR by 25 basis points,” CBK stated.The reduction is expected to provide relief to borrowers, as commercial banks use the CBR as a benchmark in determining lending rates. With the lower rate, Kenyans seeking loans, mortgages, and business financing could benefit from more affordable credit.
Economic analysts say the move signals confidence in the stability of inflation and the broader macroeconomic environment, while also reinforcing CBK’s commitment to supporting private sector expansion.The rate cut is likely to encourage increased borrowing, investment, and job creation, particularly for small and medium-sized enterprises (SMEs), which form the backbone of Kenya’s economy.
As the financial sector adjusts to the new benchmark, attention will now shift to commercial banks to see how quickly and effectively they pass on the benefits to consumers and businesses.
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