Central Bank of Kenya lowers monetary easing to curb inflation

Central Bank of Kenya governor Dr. Patrick Njoroge. [Photo: Standard]

Central Bank of Kenya moved to lower monetary easing due to rise in inflation occasioned by a recent implementation of eight percent value added tax.

The resolve comes amid the recent decision by the Central Bank making two cuts on the lending rates this year of 0.5 percent and 9.5 percent. CBK also made another cut of nine percent in July this year on grounds of nonthreatening inflation, constant exchange rate and an objective of lending out money to small business enterprises to improve the country’s economy.