Lower fuel prices seen arresting interest rates jump

Fuel pump

An attendant fuels a vehicle at a Rubis Energy service station on Koinange Street in Nairobi on May 15, 2026.

Photo credit: Wilfred Nyangaresi | Nation Media Group

The upward pressure on interest rates is expected to ease after progress in peace negotiations between the US and Iran pulled oil prices to a four-month low, allaying fears of prolonged high inflation.

Analysts say that the Central Bank of Kenya (CBK) now has a strong case to hold its rate unchanged in the next monetary policy meeting in August due to easing inflation, in the process capping the recent jump in short-term rates on government securities.

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