The base lending rate at the Central Bank of Kenya (CBK) was increased from 8.75 percent to 9 percent by 75 basis points. The tightening of the monetary policy, according to the monetary policy committee, is an effort to anchor excessive inflation, which is currently at 9.2 percent. This is in line with the recent federal reserve review that saw rates increased from 4.75 percent to 5 percent in order to combat rising inflation.
The recently imposed Kenyan foreign exchange transaction code, which is currently worth USD 6,493 million, has had a positive impact, providing some stability to the financial sector. This has been the case, according to Patrick Njoroge, governor of Kenya’s central bank, who spoke at a recent monetary policy committee briefing and applauded progress in lessening volatility, which has caused the shilling to lose territory against the dollar.
The committee took note of how the fiscal year 2022/23 government budget is still being executed, particularly how well tax revenue is being collected and how the approved fiscal year 2022/23 additional budget is aiding fiscal consolidation.