Central bank shrugs off inflation fears, retains lending rate

Government measures to allow limited duty-free imports of specific food items are expected to moderate prices. [iStockphoto]

The Central Bank of Kenya (CBK) on Monday retained the base lending rate at 8.75 per cent shrugging off rising concerns over inflation.

This has spared borrowers any increases in the cost of loans from February after the Monetary Policy Committee (MPC) sent its signal to banks to hold interest rates steady.