Kenya

Kenya central bank held its benchmark interest rate at 9.5%, acknowledging that the effects of the monetary policy tightening implemented in March are still transmitting into the economy. This decision is bolstered by government measures to permit duty-free imports of certain food items, expected to alleviate inflationary pressures. Even though it fell to a ten-month low in April, the annual inflation rate remains above the central bank’s upper target limit of 7.5%. The upcoming months might witness a fall in food inflation due to prolonged rains and decreased global food prices. However, recent hikes in electricity prices and the removal of the fuel subsidy could exert upward pressure on overall inflation.