# Monetary policy in Kenya and Tanzania

> Live situation record from CLSTR: https://clstr.news/situations/monetary-policy-in-kenya-and-tanzania
> Updated: 2026-10-13T16:00:00.000Z. Sources: 14. Developments: 2.

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

The Bank of Tanzania kept its interest rate at 6.25 percent, noting that the policy is appropriate to manage inflationary pressures. Tanzania’s annual headline inflation remained steady at 4.3 percent in September 2026, within the central bank’s medium-term target of 3 to 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.

## Timeline

### 2026-10-13: Global inflation trends show rising costs in Kenya and moderated expectations in the US

Kenya's inflation rose to 6.8% in September as the central bank held rates steady, while U.S. inflation is expected to reach 3.6%–3.7%, leading to lower expectations for Federal Reserve rate hikes.

11 sources. https://clstr.news/cluster/global-inflation-trends-show-rising-costs-in-kenya-and-moderated-expectations-in-the-us

### 2026-10-08: Central banks in Kenya and Tanzania hold interest rates steady

Central banks in Kenya and Tanzania have held interest rates steady to manage inflation, with Tanzania's inflation at 4.3% and Kenya's rising to 6.8%.

3 sources. https://clstr.news/cluster/central-banks-in-kenya-and-tanzania-hold-interest-rates-steady

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Cite as: Monetary policy in Kenya and Tanzania. CLSTR, https://clstr.news/situations/monetary-policy-in-kenya-and-tanzania