Kenya’s annual inflation rate edged up to 4.4% in August, a slight increase from 4.3% in July. Despite this, the central bank cut its benchmark interest rate this month, the first rate cut in four years, due to expectations that inflation will remain below the midpoint of its target range of 2.5% to 7.5%. This outlook is supported by stable exchange rates, steady fuel prices, and favorable weather conditions expected to improve harvests.