Newly appointed Central Bank of Kenya (CBK) Governor, Dr. Kamau Thugge chaired his first Monetary Policy Committee (MPC) meeting Monday, reviewing the benchmark lending rate to an all-time high in seven years.
The MPC revised the rate up by 100 basis points to a double-digit of 10.5 percent.
It implies high borrowing costs among Kenyans, at a time when the government is shifting to domestic borrowing.
According to MPC, the push was attributed to a hike in inflation and a gloomy outlook on inflation in the coming months.
An elevated global risk also informed the decision.
Dr. Thugge, however, said the country has enough dollars to cover imports for 4 months at Ksh.1 trillion (7.3 billion USD).