On 7 October 2026, the Central Bank of Kenya’s Monetary Policy Committee kept the Central Bank Rate at 8.75%. Inflation was 6.8% in September 2026, and the average commercial bank lending rate was 14.4%.
What this means for a business that borrows
The central bank rate has stayed the same, but what you pay depends on your bank’s lending rate, and that is still well above the central bank rate. Rates on loans are reviewed periodically, so check when your facility next reprices and what it will be based on.
Three things worth doing this quarter
- Build a 12-month cash flow forecast. With inflation at 6.8%, costs keep rising. A forecast shows when you will need credit, so you can arrange it before you are under pressure.
- Review your facilities. Compare what you pay against the current market, and ask whether an overdraft, invoice finance or asset finance fits your needs better.
- Collect faster. Every month a customer takes to pay is a month you may be financing at 14% or more. Look at your debtor days and your payment terms.
Where we help
Our business advisory work includes cash flow forecasts, financing proposals for banks and pricing reviews. Tell us what you are planning and we will help you put numbers to it.