Central banks in Kenya and Tanzania hold interest rates steady

Central banks in Kenya and Tanzania have maintained their benchmark interest rates as they balance inflation control with economic growth.

The Bank of Tanzania kept its interest rate at 6.25 percent, noting that the current policy is appropriate to manage inflationary pressures. Tanzania’s annual headline inflation remained steady at 4.3 percent in September 2026, consistent with August levels and within the central bank’s medium-term target of 3 to 5 percent. While food inflation rose slightly to 3.9 percent, monthly food prices saw a decline of 0.5 percent.

Similarly, the Central Bank of Kenya held its benchmark rate at 8.75 percent for the fourth consecutive meeting. Kenya’s annual inflation rose to 6.8 percent in September, up from 6.6 percent in August, approaching the upper limit of the government’s 2.5 to 7.5 percent target range. The bank cited government subsidies and fuel VAT reductions as factors mitigating price pressures, while forecasting economic growth for 2026 at 5.0 percent.