East African central banks hold rates as inflation risks persist

Kenya and Tanzania kept their benchmark interest rates unchanged on Wednesday as both central banks sought to contain inflation while supporting economic growth, despite rising price pressures in Kenya. The Central Bank of Kenya held its benchmark rate at 8.75 percent for a fourth consecutive policy meeting, saying inflation was expected to remain within the government’s target range in the short term. Read also: Africa’s biggest central banks diverge as Nigeria cuts, South Africa hikes Kenya’s annual inflation rose to 6.8 percent in September from 6.6 percent in August, bringing price growth closer to the upper end of the government’s preferred 2.5 to 7.5 percent range. “Government interventions, including subsidies and the temporary reduction of VAT on fuel, continue to mitigate inflationary pressures,” the Central Bank of Kenya said in a statement. The bank slightly raised its forecast for Kenya’s economic growth in 2026 to 5.0 percent from 4.9 percent previously. It identified the El Niño weather phenomenon as a key risk to the outlook. The central bank also expects Kenya’s current account deficit to widen to 3.2 percent of gross domestic product in 2026, from 2.1 percent in 2025. Tanzania keeps rate at 6.25% The Bank of Tanzania also left its benchmark interest rate at 6.25 percent, saying its current policy stance remained appropriate to contain inflationary pressures and support economic growth. Tanzania targets inflation of between 3 and 5 percent over the medium term. Inflation stood at 4.3 percent year on year in August, the latest available figure, remaining within the central bank’s target range. The bank said economic activity remained strong, with the economy growing 6 percent in the first quarter of 2026. It expects growth to remain above 6 percent in both the second and third quarters. Read also: Kenya inflation rises for third month clouding rate cut outlook The decision follows a 50 basis point rate increase in July, when the central bank raised its key rate to 6.25 percent from 5.75 percent. It was the first increase since April 2024. The July increase was aimed at keeping inflation within the 3 to 5 percent target while maintaining economic growth. At the time, the central bank said inflationary pressures were expected to remain contained, supported by a strong harvest and export earnings that could help limit the impact of exchange rate movements on import prices. Read also: Tanzania’s richest man offers 100m for Dangote’s planned Kenya refinery For both economies, the decisions point to a cautious approach as policymakers balance inflation risks with the need to sustain economic activity. While Kenya is facing inflation closer to the top of its target range, Tanzania’s price growth remains within its medium-term objective. Related News FIFA Ranking: Heavy Guinea-Bissau defeat drives Super Eagles’ drop to 30th US proposed $70,000 university fee threatens foreign student jobs The lives behind NAF 931’s final flight Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

The Central Bank of Kenya held its benchmark rate at 8.75 percent for a fourth consecutive policy meeting, saying inflation was expected to remain within the government’s target range in the short term. Read also: Africa’s biggest central banks diverge as Nigeria cuts, South Africa hikes Kenya’s annual inflation rose to 6.8 percent in September from 6.6 percent in August, bringing price growth closer to the upper end of the government’s preferred 2.5 to 7.5 percent range. “Government interventions, including subsidies and the temporary reduction of VAT on fuel, continue to mitigate inflationary pressures,” the Central Bank of Kenya said in a statement. The bank slightly raised its forecast for Kenya’s economic growth in 2026 to 5.0 percent from 4.9 percent previously. It identified the El Niño weather phenomenon as a key risk to the outlook. The central bank also expects Kenya’s current account deficit to widen to 3.2 percent of gross domestic product in 2026, from 2.1 percent in 2025. Tanzania keeps rate at 6.25% The Bank of Tanzania also left its benchmark interest rate at 6.25 percent, saying its current policy stance remained appropriate to contain inflationary pressures and support economic growth. Tanzania targets inflation of between 3 and 5 percent over the medium term. Inflation stood at 4.3 percent year on year in August, the latest available figure, remaining within the central bank’s target range. The bank said economic activity remained strong, with the economy growing 6 percent in the first quarter of 2026. It expects growth to remain above 6 percent in both the second and third quarters. Read also: Kenya inflation rises for third month clouding rate cut outlook The decision follows a 50 basis point rate increase in July, when the central bank raised its key rate to 6.25 percent from 5.75 percent. It was the first increase since April 2024. The July increase was aimed at keeping inflation within the 3 to 5 percent target while maintaining economic growth. At the time, the central bank said inflationary pressures were expected to remain contained, supported by a strong harvest and export earnings that could help limit the impact of exchange rate movements on import prices. Read also: Tanzania’s richest man offers 100m for Dangote’s planned Kenya refinery For both economies, the decisions point to a cautious approach as policymakers balance inflation risks with the need to sustain economic activity. While Kenya is facing inflation closer to the top of its target range, Tanzania’s price growth remains within its medium-term objective. Related News FIFA Ranking: Heavy Guinea-Bissau defeat drives Super Eagles’ drop to 30th US proposed $70,000 university fee threatens foreign student jobs The lives behind NAF 931’s final flight Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

Read also: Africa’s biggest central banks diverge as Nigeria cuts, South Africa hikes Kenya’s annual inflation rose to 6.8 percent in September from 6.6 percent in August, bringing price growth closer to the upper end of the government’s preferred 2.5 to 7.5 percent range. “Government interventions, including subsidies and the temporary reduction of VAT on fuel, continue to mitigate inflationary pressures,” the Central Bank of Kenya said in a statement. The bank slightly raised its forecast for Kenya’s economic growth in 2026 to 5.0 percent from 4.9 percent previously. It identified the El Niño weather phenomenon as a key risk to the outlook. The central bank also expects Kenya’s current account deficit to widen to 3.2 percent of gross domestic product in 2026, from 2.1 percent in 2025. Tanzania keeps rate at 6.25% The Bank of Tanzania also left its benchmark interest rate at 6.25 percent, saying its current policy stance remained appropriate to contain inflationary pressures and support economic growth. Tanzania targets inflation of between 3 and 5 percent over the medium term. Inflation stood at 4.3 percent year on year in August, the latest available figure, remaining within the central bank’s target range. The bank said economic activity remained strong, with the economy growing 6 percent in the first quarter of 2026. It expects growth to remain above 6 percent in both the second and third quarters. Read also: Kenya inflation rises for third month clouding rate cut outlook The decision follows a 50 basis point rate increase in July, when the central bank raised its key rate to 6.25 percent from 5.75 percent. It was the first increase since April 2024. The July increase was aimed at keeping inflation within the 3 to 5 percent target while maintaining economic growth. At the time, the central bank said inflationary pressures were expected to remain contained, supported by a strong harvest and export earnings that could help limit the impact of exchange rate movements on import prices. Read also: Tanzania’s richest man offers 100m for Dangote’s planned Kenya refinery For both economies, the decisions point to a cautious approach as policymakers balance inflation risks with the need to sustain economic activity. While Kenya is facing inflation closer to the top of its target range, Tanzania’s price growth remains within its medium-term objective. Related News FIFA Ranking: Heavy Guinea-Bissau defeat drives Super Eagles’ drop to 30th US proposed $70,000 university fee threatens foreign student jobs The lives behind NAF 931’s final flight Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

Kenya’s annual inflation rose to 6.8 percent in September from 6.6 percent in August, bringing price growth closer to the upper end of the government’s preferred 2.5 to 7.5 percent range. “Government interventions, including subsidies and the temporary reduction of VAT on fuel, continue to mitigate inflationary pressures,” the Central Bank of Kenya said in a statement. The bank slightly raised its forecast for Kenya’s economic growth in 2026 to 5.0 percent from 4.9 percent previously. It identified the El Niño weather phenomenon as a key risk to the outlook. The central bank also expects Kenya’s current account deficit to widen to 3.2 percent of gross domestic product in 2026, from 2.1 percent in 2025. Tanzania keeps rate at 6.25% The Bank of Tanzania also left its benchmark interest rate at 6.25 percent, saying its current policy stance remained appropriate to contain inflationary pressures and support economic growth. Tanzania targets inflation of between 3 and 5 percent over the medium term. Inflation stood at 4.3 percent year on year in August, the latest available figure, remaining within the central bank’s target range. The bank said economic activity remained strong, with the economy growing 6 percent in the first quarter of 2026. It expects growth to remain above 6 percent in both the second and third quarters. Read also: Kenya inflation rises for third month clouding rate cut outlook The decision follows a 50 basis point rate increase in July, when the central bank raised its key rate to 6.25 percent from 5.75 percent. It was the first increase since April 2024. The July increase was aimed at keeping inflation within the 3 to 5 percent target while maintaining economic growth. At the time, the central bank said inflationary pressures were expected to remain contained, supported by a strong harvest and export earnings that could help limit the impact of exchange rate movements on import prices. Read also: Tanzania’s richest man offers 100m for Dangote’s planned Kenya refinery For both economies, the decisions point to a cautious approach as policymakers balance inflation risks with the need to sustain economic activity. While Kenya is facing inflation closer to the top of its target range, Tanzania’s price growth remains within its medium-term objective. Related News FIFA Ranking: Heavy Guinea-Bissau defeat drives Super Eagles’ drop to 30th US proposed $70,000 university fee threatens foreign student jobs The lives behind NAF 931’s final flight Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

“Government interventions, including subsidies and the temporary reduction of VAT on fuel, continue to mitigate inflationary pressures,” the Central Bank of Kenya said in a statement. The bank slightly raised its forecast for Kenya’s economic growth in 2026 to 5.0 percent from 4.9 percent previously. It identified the El Niño weather phenomenon as a key risk to the outlook. The central bank also expects Kenya’s current account deficit to widen to 3.2 percent of gross domestic product in 2026, from 2.1 percent in 2025. Tanzania keeps rate at 6.25% The Bank of Tanzania also left its benchmark interest rate at 6.25 percent, saying its current policy stance remained appropriate to contain inflationary pressures and support economic growth. Tanzania targets inflation of between 3 and 5 percent over the medium term. Inflation stood at 4.3 percent year on year in August, the latest available figure, remaining within the central bank’s target range. The bank said economic activity remained strong, with the economy growing 6 percent in the first quarter of 2026. It expects growth to remain above 6 percent in both the second and third quarters. Read also: Kenya inflation rises for third month clouding rate cut outlook The decision follows a 50 basis point rate increase in July, when the central bank raised its key rate to 6.25 percent from 5.75 percent. It was the first increase since April 2024. The July increase was aimed at keeping inflation within the 3 to 5 percent target while maintaining economic growth. At the time, the central bank said inflationary pressures were expected to remain contained, supported by a strong harvest and export earnings that could help limit the impact of exchange rate movements on import prices. Read also: Tanzania’s richest man offers 100m for Dangote’s planned Kenya refinery For both economies, the decisions point to a cautious approach as policymakers balance inflation risks with the need to sustain economic activity. While Kenya is facing inflation closer to the top of its target range, Tanzania’s price growth remains within its medium-term objective. Related News FIFA Ranking: Heavy Guinea-Bissau defeat drives Super Eagles’ drop to 30th US proposed $70,000 university fee threatens foreign student jobs The lives behind NAF 931’s final flight Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

The bank slightly raised its forecast for Kenya’s economic growth in 2026 to 5.0 percent from 4.9 percent previously. It identified the El Niño weather phenomenon as a key risk to the outlook. The central bank also expects Kenya’s current account deficit to widen to 3.2 percent of gross domestic product in 2026, from 2.1 percent in 2025. Tanzania keeps rate at 6.25% The Bank of Tanzania also left its benchmark interest rate at 6.25 percent, saying its current policy stance remained appropriate to contain inflationary pressures and support economic growth. Tanzania targets inflation of between 3 and 5 percent over the medium term. Inflation stood at 4.3 percent year on year in August, the latest available figure, remaining within the central bank’s target range. The bank said economic activity remained strong, with the economy growing 6 percent in the first quarter of 2026. It expects growth to remain above 6 percent in both the second and third quarters. Read also: Kenya inflation rises for third month clouding rate cut outlook The decision follows a 50 basis point rate increase in July, when the central bank raised its key rate to 6.25 percent from 5.75 percent. It was the first increase since April 2024. The July increase was aimed at keeping inflation within the 3 to 5 percent target while maintaining economic growth. At the time, the central bank said inflationary pressures were expected to remain contained, supported by a strong harvest and export earnings that could help limit the impact of exchange rate movements on import prices. Read also: Tanzania’s richest man offers 100m for Dangote’s planned Kenya refinery For both economies, the decisions point to a cautious approach as policymakers balance inflation risks with the need to sustain economic activity. While Kenya is facing inflation closer to the top of its target range, Tanzania’s price growth remains within its medium-term objective. Related News FIFA Ranking: Heavy Guinea-Bissau defeat drives Super Eagles’ drop to 30th US proposed $70,000 university fee threatens foreign student jobs The lives behind NAF 931’s final flight Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

The central bank also expects Kenya’s current account deficit to widen to 3.2 percent of gross domestic product in 2026, from 2.1 percent in 2025. Tanzania keeps rate at 6.25% The Bank of Tanzania also left its benchmark interest rate at 6.25 percent, saying its current policy stance remained appropriate to contain inflationary pressures and support economic growth. Tanzania targets inflation of between 3 and 5 percent over the medium term. Inflation stood at 4.3 percent year on year in August, the latest available figure, remaining within the central bank’s target range. The bank said economic activity remained strong, with the economy growing 6 percent in the first quarter of 2026. It expects growth to remain above 6 percent in both the second and third quarters. Read also: Kenya inflation rises for third month clouding rate cut outlook The decision follows a 50 basis point rate increase in July, when the central bank raised its key rate to 6.25 percent from 5.75 percent. It was the first increase since April 2024. The July increase was aimed at keeping inflation within the 3 to 5 percent target while maintaining economic growth. At the time, the central bank said inflationary pressures were expected to remain contained, supported by a strong harvest and export earnings that could help limit the impact of exchange rate movements on import prices. Read also: Tanzania’s richest man offers 100m for Dangote’s planned Kenya refinery For both economies, the decisions point to a cautious approach as policymakers balance inflation risks with the need to sustain economic activity. While Kenya is facing inflation closer to the top of its target range, Tanzania’s price growth remains within its medium-term objective. Related News FIFA Ranking: Heavy Guinea-Bissau defeat drives Super Eagles’ drop to 30th US proposed $70,000 university fee threatens foreign student jobs The lives behind NAF 931’s final flight Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

The Bank of Tanzania also left its benchmark interest rate at 6.25 percent, saying its current policy stance remained appropriate to contain inflationary pressures and support economic growth. Tanzania targets inflation of between 3 and 5 percent over the medium term. Inflation stood at 4.3 percent year on year in August, the latest available figure, remaining within the central bank’s target range. The bank said economic activity remained strong, with the economy growing 6 percent in the first quarter of 2026. It expects growth to remain above 6 percent in both the second and third quarters. Read also: Kenya inflation rises for third month clouding rate cut outlook The decision follows a 50 basis point rate increase in July, when the central bank raised its key rate to 6.25 percent from 5.75 percent. It was the first increase since April 2024. The July increase was aimed at keeping inflation within the 3 to 5 percent target while maintaining economic growth. At the time, the central bank said inflationary pressures were expected to remain contained, supported by a strong harvest and export earnings that could help limit the impact of exchange rate movements on import prices. Read also: Tanzania’s richest man offers 100m for Dangote’s planned Kenya refinery For both economies, the decisions point to a cautious approach as policymakers balance inflation risks with the need to sustain economic activity. While Kenya is facing inflation closer to the top of its target range, Tanzania’s price growth remains within its medium-term objective. Related News FIFA Ranking: Heavy Guinea-Bissau defeat drives Super Eagles’ drop to 30th US proposed $70,000 university fee threatens foreign student jobs The lives behind NAF 931’s final flight Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

Tanzania targets inflation of between 3 and 5 percent over the medium term. Inflation stood at 4.3 percent year on year in August, the latest available figure, remaining within the central bank’s target range. The bank said economic activity remained strong, with the economy growing 6 percent in the first quarter of 2026. It expects growth to remain above 6 percent in both the second and third quarters. Read also: Kenya inflation rises for third month clouding rate cut outlook The decision follows a 50 basis point rate increase in July, when the central bank raised its key rate to 6.25 percent from 5.75 percent. It was the first increase since April 2024. The July increase was aimed at keeping inflation within the 3 to 5 percent target while maintaining economic growth. At the time, the central bank said inflationary pressures were expected to remain contained, supported by a strong harvest and export earnings that could help limit the impact of exchange rate movements on import prices. Read also: Tanzania’s richest man offers 100m for Dangote’s planned Kenya refinery For both economies, the decisions point to a cautious approach as policymakers balance inflation risks with the need to sustain economic activity. While Kenya is facing inflation closer to the top of its target range, Tanzania’s price growth remains within its medium-term objective. Related News FIFA Ranking: Heavy Guinea-Bissau defeat drives Super Eagles’ drop to 30th US proposed $70,000 university fee threatens foreign student jobs The lives behind NAF 931’s final flight Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

The bank said economic activity remained strong, with the economy growing 6 percent in the first quarter of 2026. It expects growth to remain above 6 percent in both the second and third quarters. Read also: Kenya inflation rises for third month clouding rate cut outlook The decision follows a 50 basis point rate increase in July, when the central bank raised its key rate to 6.25 percent from 5.75 percent. It was the first increase since April 2024. The July increase was aimed at keeping inflation within the 3 to 5 percent target while maintaining economic growth. At the time, the central bank said inflationary pressures were expected to remain contained, supported by a strong harvest and export earnings that could help limit the impact of exchange rate movements on import prices. Read also: Tanzania’s richest man offers 100m for Dangote’s planned Kenya refinery For both economies, the decisions point to a cautious approach as policymakers balance inflation risks with the need to sustain economic activity. While Kenya is facing inflation closer to the top of its target range, Tanzania’s price growth remains within its medium-term objective. Related News FIFA Ranking: Heavy Guinea-Bissau defeat drives Super Eagles’ drop to 30th US proposed $70,000 university fee threatens foreign student jobs The lives behind NAF 931’s final flight Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

Read also: Kenya inflation rises for third month clouding rate cut outlook The decision follows a 50 basis point rate increase in July, when the central bank raised its key rate to 6.25 percent from 5.75 percent. It was the first increase since April 2024. The July increase was aimed at keeping inflation within the 3 to 5 percent target while maintaining economic growth. At the time, the central bank said inflationary pressures were expected to remain contained, supported by a strong harvest and export earnings that could help limit the impact of exchange rate movements on import prices. Read also: Tanzania’s richest man offers 100m for Dangote’s planned Kenya refinery For both economies, the decisions point to a cautious approach as policymakers balance inflation risks with the need to sustain economic activity. While Kenya is facing inflation closer to the top of its target range, Tanzania’s price growth remains within its medium-term objective. Related News FIFA Ranking: Heavy Guinea-Bissau defeat drives Super Eagles’ drop to 30th US proposed $70,000 university fee threatens foreign student jobs The lives behind NAF 931’s final flight Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

The decision follows a 50 basis point rate increase in July, when the central bank raised its key rate to 6.25 percent from 5.75 percent. It was the first increase since April 2024. The July increase was aimed at keeping inflation within the 3 to 5 percent target while maintaining economic growth. At the time, the central bank said inflationary pressures were expected to remain contained, supported by a strong harvest and export earnings that could help limit the impact of exchange rate movements on import prices. Read also: Tanzania’s richest man offers 100m for Dangote’s planned Kenya refinery For both economies, the decisions point to a cautious approach as policymakers balance inflation risks with the need to sustain economic activity. While Kenya is facing inflation closer to the top of its target range, Tanzania’s price growth remains within its medium-term objective. Related News FIFA Ranking: Heavy Guinea-Bissau defeat drives Super Eagles’ drop to 30th US proposed $70,000 university fee threatens foreign student jobs The lives behind NAF 931’s final flight Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

The July increase was aimed at keeping inflation within the 3 to 5 percent target while maintaining economic growth. At the time, the central bank said inflationary pressures were expected to remain contained, supported by a strong harvest and export earnings that could help limit the impact of exchange rate movements on import prices. Read also: Tanzania’s richest man offers 100m for Dangote’s planned Kenya refinery For both economies, the decisions point to a cautious approach as policymakers balance inflation risks with the need to sustain economic activity. While Kenya is facing inflation closer to the top of its target range, Tanzania’s price growth remains within its medium-term objective. Related News FIFA Ranking: Heavy Guinea-Bissau defeat drives Super Eagles’ drop to 30th US proposed $70,000 university fee threatens foreign student jobs The lives behind NAF 931’s final flight Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

Read also: Tanzania’s richest man offers 100m for Dangote’s planned Kenya refinery For both economies, the decisions point to a cautious approach as policymakers balance inflation risks with the need to sustain economic activity. While Kenya is facing inflation closer to the top of its target range, Tanzania’s price growth remains within its medium-term objective. Related News FIFA Ranking: Heavy Guinea-Bissau defeat drives Super Eagles’ drop to 30th US proposed $70,000 university fee threatens foreign student jobs The lives behind NAF 931’s final flight Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

For both economies, the decisions point to a cautious approach as policymakers balance inflation risks with the need to sustain economic activity. While Kenya is facing inflation closer to the top of its target range, Tanzania’s price growth remains within its medium-term objective. Related News FIFA Ranking: Heavy Guinea-Bissau defeat drives Super Eagles’ drop to 30th US proposed $70,000 university fee threatens foreign student jobs The lives behind NAF 931’s final flight Faith Omoboye Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance. Share

Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance.