Kenya Interest Rate

The benchmark interest rate in Kenya was last recorded at 8.50 percent. Interest Rate in Kenya is reported by the Central Bank of Kenya. Interest Rate in Kenya averaged 14.69 Percent from 1991 until 2014, reaching an all time high of 84.67 Percent in July of 1993 and a record low of 0.83 Percent in September of 2003. In Kenya, interest rates decisions are taken by The Monetary Policy Committee (MPC) of the The Central Bank of Kenya. The official interest rate since August 2005 is the Central Bank Rate (CBR), which replaced the 91-day Treasury Bill (TB) rate. This page provides - Kenya Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. 2014-04-20

Actual Previous Highest Lowest Forecast Dates Unit Frequency
8.50 8.50 84.67 0.83 8.50 | 2014/06 1991 - 2014 Percent Monthly

TO

Kenya Interest Rate
LIST BY COUNTRY


CALENDAR GMT Country Event Reference Actual Previous Consensus Forecast
2013-07-09 03:00 PM Kenya
Interest Rate Decision
8.5% 8.5% 8.5%
2013-09-03 02:10 PM Kenya
Interest Rate Decision
8.5% 8.5% 8.5%
2013-11-05 02:00 PM Kenya
Interest Rate Decision
8.5% 8.5% 8.75%
2014-01-14 01:45 PM Kenya
Interest Rate Decision
8.5% 8.5% 8.5%
[+]

Money Last Previous Highest Lowest Forecast Unit
Foreign Exchange Reserves 8483.20 2013-12-31 7927.00 8483.20 853.00 8928.03 2014-06-30 USD Million [+]
Interest Rate 8.50 2014-03-04 8.50 84.67 0.83 8.50 2014-06-30 Percent [+]
Money Supply M1 799.80 2014-01-31 788.30 799.80 97.90 830.15 2014-06-30 KES Billion [+]
Money Supply M2 1655.48 2014-01-31 1632.85 1655.48 302.72 1730.66 2014-06-30 KES Billion [+]
Money Supply M3 1982595.00 2014-01-31 1957492.00 1982595.00 345.90 2307197.38 2014-06-30 KES Billion [+]
[+]


Kenya Monetary Policy Unchanged in March

Kenyan Monetary Policy Committee decided to hold the central bank rate at 8.50 percent on March 4th, as overall inflation continued to decline in February and remained within the target range, while exchange rate stability was maintained.

Excerpt from the statement by the Central Bank of Kenya:

The overall month-on-month inflation declined from 7.21 percent in January to 6.86 percent in February. Month-on-month non-food-non-fuel (NFNF) inflation remained relatively stable: it increased slightly from 4.83 percent to 4.93 percent during the period. This is an indication that the monetary policy stance has continued to support a stable inflation rate and that private sector credit growth during the period was non-inflationary.

Exchange rate stability was sustained during the period. The Kenya Shilling to US Dollar rate fluctuated within a narrower range in February compared to the previous month. The Central Bank increased its level of usable foreign exchange reserves in the period, mainly attributed to commercial banks selling of foreign exchange.

The Government domestic borrowing program for the Fiscal Year 2013/14 as provided in the Medium-Term Budget Policy Statement, remains consistent with the monetary policy objectives, ensuring the expected increase in private investment and enabling the bond market to remain vibrant while also facilitating the deepening of the capital market.

Confidence in the economy remains strong. Specifically, the latest Sovereign rating by Fitch Rating agency undertaken in February placed Kenya at "B+ with a stable outlook" and improved its position on Nairobi Securities Exchange (NSE) index. Diaspora remittances remained resilient. This was further supported by the MPC Market Perception Survey which showed that the private sector expects inflation and the exchange rate to remain stable for the remainder of 2014. Furthermore, the private sector firms sustained their optimism for a strong growth in 2014.

Central Bank of Kenya | Isabel Felino | isabel.felino@tradingeconomics.com
3/4/2014 4:41:13 PM

RECENT RELEASES

Kenya Leaves Rate on Hold at 8.5%
At is January 14th meeting, Central Bank of Kenya decided to leave the benchmark interest rate on hold at 8.5 percent, as the current monetary policy stance is considered to deliver the desired objective of price stability. The Committee also said there was room for commercial banks to reduce the lending rates. Published on 2014-01-14

Kenya Monetary Policy Unchanged in November
Central Bank of Kenya decided on November 5th to hold the benchmark interest rate unchanged at 8.5 percent for the sixth straight meeting. The Committee noted that while overall inflation had declined in October, it remained above the 7.5 percent upper bound for the Government medium-term target. However, the strengthening of the Kenya Shilling against major currencies moderated any impact of the pass-through effect of imported inflation. Published on 2013-11-05


Interest Rate | Notes
The interest rate shown on this page refers to the central bank benchmark interest rate. Usually, the central bank benchmark interest rate is the overnight rate at which central banks make loans to the commercial banks under their jurisdiction. Moving the benchmark interest rate, the central bank is able to make an impact on interest rates of commercial banks, inflation level of the country and national currency exchange rate. Reduction of interest rates should bring increase in business activity, a rise in inflation rate and weakening of national currency. In case of increase in interest rates the level of business activity is likely to drop, inflation declines and national currency strengthens.


RELATED NEWS

Kenyan Trade Deficit Widens to Second Highest in Nearly 2-1/2 Years  
Trade deficit in Kenya increased in January of 2014 to KES 87.1 billion from KES 83.7 billion a year earlier and KES 78.7 billion in December of 2013.
Kenya Inflation Rate Edges Down to 6.27% in March  
Kenyan annual inflation rate decelerated for the second consecutive month to 6.27 percent, from 6.86 percent recorded in February of 2014, as food, electricity and gas prices slowed.
Kenya Monetary Policy Unchanged in March  
Kenyan Monetary Policy Committee decided to hold the central bank rate at 8.50 percent on March 4th, as overall inflation continued to decline in February and remained within the target range, while exchange rate stability was maintained.
Kenya Inflation Rate Falls to 6.86% in February  
Kenyan annual inflation rate decreased to 6.86 percent in February, slowing from 7.21 percent in the previous month, as Food and Transport prices rose at a slower pace.
Kenya Trade Deficit Widens in December  
In the last month of 2013, Kenya’s trade deficit increased to KES 78.67 billion, from KES 71.7 billion in the previous month and KES 76.9 billion a year earlier.
Kenya Trade Deficit Narrows in November  
In November of 2013, Kenyan trade deficit decreased to KES 71.73 billion, down from KES 92.9 billion in the previous month and KES 83.8 billion in the same month last year, boosted by higher tea sales.
Kenya Inflation Rate Rises to 7.2% in January  
In January of 2014, Kenyan annual inflation rate increased to 7.2 percent, slightly up from 7.15 percent registered in December of 2013.
Kenya Leaves Rate on Hold at 8.5%  
At is January 14th meeting, Central Bank of Kenya decided to leave the benchmark interest rate on hold at 8.5 percent, as the current monetary policy stance is considered to deliver the desired objective of price stability. The Committee also said there was room for commercial banks to reduce the lending rates.
Kenya GDP Expands 4.4% YoY in Q3  
In the third quarter of 2013, Kenyan economy advanced 4.4 percent over the previous year, slightly up from 4.3 percent in the June quarter, but down from 4.5 percent a year ago, mainly due to a slowdown in the agriculture and forestry sector.
Kenyan Trade Deficit Rises in September Over a Year Earlier  
In September of 2013, Kenyan trade deficit widened 8.2 percent over a year earlier to 71 billion KES, as lower prices of tea and coffee heat exports. On a monthly basis, the trade deficit decreased 9.9 percent, due to a fall in imports.
MORE RELATED NEWS

LATEST NEWS

Chile Leaves Monetary Policy Unchanged  
At its April 17th, 2014 meeting, Central Bank of Chile left the benchmark interest rate on hold at 4 percent, following last month's cut, citing low output and demand, but hinted possible future rate cuts, depending on domestic and external conditions.
Russia Unemployment Drops in March  
Russian jobless rate fell for the first time in four months to 5.4 percent, after remaining stable at 5.6 percent in the previous two months.
Canada Inflation Rises Above Forecasts in March  
The annual consumer prices in Canada accelerated to 1.5 percent in March of 2014 following a 1.1 increase in the previous month, as energy prices surged.
US Jobless Claims Rise Slightly  
In the week ending April 12, the advance figure for seasonally adjusted initial claims was 304,000, an increase of 2,000 from the previous week's revised level. The previous week's level was revised up by 2,000 from 300,000 to 302,000. There were no special factors impacting this week's initial claims.
Brazil Unemployment Rate Down to 5%  
In March of 2014, Brazil’s jobless rate fell by 0.1 percentage point to 5 percent, below market forecasts. A year earlier, unemployment reached 5.7 percent.
Dutch Unemployment Rate Falls for the First Time in 2014  
In March of 2014, Netherlands’ seasonally adjusted jobless rate fell to 8.7 percent from 8.8 percent in the previous month and 8.1 percent a year earlier, as more people left permanently the labor market rather than found jobs.
Singaporean Trade Surplus Narrows Sharply in March  
The trade surplus decreased 51.1 percent in March of 2014 over a year earlier and 47.2 percent from February to SGD 2.3 billion. Imports rose at a faster pace than exports, as sales of pharmaceuticals and electronics fell, while shipments of petrochemicals and re-exports contributed to overall increase.
Mozambique Leaves Lending Rate Steady at 8.25%  
At its April 16th, 2014 meeting, Bank of Mozambique left its benchmark interest rate unchanged at 8.25 percent for the sixth consecutive meeting, saying this was consistent with meeting domestic economic targets for 2014.
Spanish Trade Deficit Narrows to 4-Month Low  
In February of 2014, Spanish trade gap decreased to € 1.62 billion, down from € 2.82 billion in the previous month. Compared with the same month a year earlier, the trade deficit widened 37 percent.
Angolan Inflation Rate Down To 7.32% in March  
The annual consumer prices in Angola decelerated for the second consecutive month to 7.32 percent in March of 2014, from 7.48 percent recorded in February of 2014.
MORE TOP NEWS

OVERVIEW    |     WORLBANK    |     [+] Calendar    |     [+] Countries    |     [+] Indicators    |     News