The Central Bank of Kenya reduced its benchmark interest rate by another 25 basis points to 9.50% in August 2025, marking a seventh consecutive cut. Kenya's annual inflation accelerated to 4.1% in July 2025, from 3.8% in June but remained within the central bank's target range of 2.5% to 7.5%. Governor Kamau Thugge explained that the MPC cut rates to continue promoting lending to the private sector and economic growth, ensuring inflation expectations remain anchored and the exchange rate steady. The central bank has lowered borrowing costs by a cumulative 350-basis points since August 2024.