Kenya Inflation Eases to 4.3%, CBK Room for Rate Cuts
Kenya's annual inflation dropped to 4.3% in February 2026 from 4.4% in January, giving the Central Bank of Kenya (CBK) more flexibility to consider additional interest rate cuts. The Kenya National Bureau of Statistics (KNBS) reported this in its latest Consumer Price Index and Inflation Report. The CBK has reduced borrowing costs for 10 consecutive meetings since August 2024 as inflation consistently stayed below its 5% target. Food prices moderated significantly, with sugar falling to KSh 166.56/kg from KSh 174.17/kg and mangoes dropping to KSh 144.37/kg from KSh 149.09/kg. Transport costs rose 4.0% and housing increased 1.8%. Core inflation, excluding volatile items, fell to 2.1%. Nigeria also saw slight inflation moderation, with headline inflation at 15.10% in January and the CBN cutting the Monetary Policy Rate (MPR) to 26.5% from 27%. This suggests Kenya may pursue further monetary easing to stimulate growth.