The Central Bank Rate (CBR) is the benchmark interest rate the Central Bank of Kenya uses for its signalling and overnight facilities. The Monetary Policy Committee (MPC) reviews it every two months. As of February 2026 it sits at 8.75%.
How it flows through
- Treasury bills price off the CBR within days. When CBR drops 50bps, T-bill yields tend to follow within the next auction.
- MMFs hold mostly T-bills, so their yields track CBR with a 2-8 week lag.
- Commercial bank loans follow more slowly. Banks adjust their Reference Rate (CBRR) quarterly; new loans reprice first, existing variable loans reset on their contracted dates.
- Deposit rates respond last and least — banks are happy to pay you less quickly but slow to raise rates.
What to watch for
If the MPC signals a cutting cycle, lock in a fixed-rate loan while rates are still high and expect MMF yields to drift down over the next year. If the MPC signals hikes, float your loan, and MMFs become increasingly attractive.