Kenya ends the year in better shape than it began it. Activity is accelerating, inflation has edged lower and the system has more breathing room on the external side. Policy remains loose, liquidity is behaving and the Shilling is holding its line. The tone has shifted from stabilisation to something closer to controlled momentum. Monetary Policy. The CBK left the benchmark rate at 9.25% at its December meeting, keeping the stance steady after October’s cut. The tone was confidently neutral. Liquidity is flowing, Kenya Shilling Overnight Interbank Average (KESONIA) is trading close to policy and the Bank sees no need to push harder for now.Inflation eased again in November to 4.5%, helped by softer fuel prices. With the print still well inside the 2.5 to 7.5% target band, the policy mix remains relaxed and predictable. As we noted in our October and November briefs, the CBK’s priority was to get liquidity aligned with policy. December confirms that alignment - KESONIA has settled ...
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