10/08/2026
So… what’s actually going on with interest rates?
You hear about CBK changing rates, the Fed making decisions, bond yields moving, and it can all sound a little complicated.
But at its simplest, interest rates are the price of money.
When rates go up:
• Loans become more expensive
• Businesses may spend more on borrowing
• People may have less money left after debt repayments
• New bonds can offer more attractive returns
• Prices of existing bonds can come under pressure
When rates come down, the opposite can happen. Borrowing can become cheaper, which can encourage spending and investment, although returns on some savings and fixed-income investments may also fall.
Where are we today?
🇰🇪 Kenya’s CBK rate is currently 8.75%.
🇺🇸 The US Fed rate is currently 3.50%–3.75%.
For the rest of 2026, the big thing I’ll be watching is inflation. If inflation continues to ease, we could see room for lower rates. If it stays sticky, central banks may keep rates higher for longer.
And this is why interest rates matter to you, even if you’ve never taken a loan.
They can affect your savings, investments, business, mortgage, cost of living and ultimately your wealth.
The question isn’t just “Where are rates going?”
It’s “What should I be doing with my money in this rate environment?”
