The Central Bank of Kenya reduced its central bank rate by 25 basis points to 9.00% at its Monetary Policy Committee meeting on 9 December 2025. The decision marks the ninth consecutive cut since the CBK began reducing rates from the 2024 peak, with cumulative easing now standing at 400 basis points.
The MPC said the cut would support lending by banks to the private sector and economic activity, and that it would closely monitor the impact of its policy decisions and stand ready to take further action as necessary.
THE EASING CYCLE
Average commercial bank lending rates stood at 14.9% in November 2025, down from 17.2% a year earlier, while the gross NPL ratio was 16.5%.
The 25-basis-point move matches the size of the CBK's four previous cuts since June 2025, after larger reductions earlier in the cycle, including 75-basis-point cuts in October 2024, December 2024 and April 2025 and a 50-basis-point cut in February 2025.