In a decisive and somewhat unexpected move, the Monetary Policy Committee of the Central Bank of Kenya (CBK) announced a significant cut to its benchmark lending rate on April 8. The CBK reduced the rate by 75 basis points, bringing it down to 10.0%. This marked the fifth consecutive meeting at which the bank has eased its monetary policy stance, signaling a strong commitment to fostering economic activity.

The rate cut was larger than many market analysts had anticipated and was explicitly aimed at "stimulating lending by commercial banks to the private sector" and providing crucial support to overall economic activity within the country. In addition to the main policy rate adjustment, the CBK also narrowed its interest rate corridor and reduced the discount-window rate, further measures designed to effectively bring down borrowing costs for businesses and consumers alike. The Bank's ability to make such an aggressive move was supported by a relatively benign inflation environment, with March inflation recorded at 3.6%, well within the official target range. The CBK maintained its full-year economic growth forecast for Kenya at a healthy 5.4%, expressing confidence in the economy's underlying strength despite global headwinds.