Kenya’s annual inflation rate decreased to 6.3% in February from 6.9% the previous month, with expectations for further declines as the recent shilling appreciation impacts the economy. The shilling, which has strengthened by 12% this month, benefited from the successful rollover of a Eurobond and support from two consecutive central bank interest rate hikes totaling 250 bps. Lower food price inflation, significant given food’s substantial share in the inflation basket, also contributed to the overall easing of inflation, aligning with the central bank’s goal to reach a 5% inflation midpoint.