Kenya’s latest money numbers are telling an interesting story. Inflation has climbed to 6.6%, Treasury Bill rates are sitting around 8.8%–9.1%, average commercial-bank deposits are paying 6.93%, while the average bank lending rate remains much higher at 14.39%.
For anyone trying to save, borrow or simply understand where their money is going, those percentages matter. But comparing them properly matters even more.
Inflation reached 6.6% in August
According to the Kenya National Bureau of Statistics, annual inflation reached 6.6% in August 2026. That means the overall price level was 6.6% higher than a year earlier.
Some categories rose faster than the headline figure. Food and non-alcoholic beverages were up 9.0% year on year, transport prices were up 15.7%, while housing, water, electricity, gas and other fuels increased by 3.6%.
Treasury Bill rates remain above headline inflation
Current Central Bank of Kenya market data shows the previous average Treasury Bill rates around 8.7687% for 91 days, 8.9331% for 182 days and 9.0737% for 364 days.
| Instrument | Published rate |
|---|---|
| 91-day T-Bill | 8.7687% |
| 182-day T-Bill | 8.9331% |
| 364-day T-Bill | 9.0737% |
| August inflation | 6.6% |
That places all three quoted T-Bill rates above the latest headline inflation rate. But this does not mean you should simply subtract inflation from the quoted T-Bill rate and call the difference your return.
Taxes, the exact holding period, auction pricing and future inflation all affect the result. Treasury Bills are also auctioned regularly, so accepted rates can change from one auction to another.
Bank deposits are close to inflation
The latest available Central Bank of Kenya commercial-bank averages for July 2026 show an average deposit rate of 6.93%, an average savings rate of 3.53%, and an average lending rate of 14.39%.
The average deposit rate is only slightly above August’s headline inflation rate, while the average savings rate is below it. These are industry averages, not promises from any specific bank. Actual rates vary by institution, product, balance and term.
Borrowing remains considerably more expensive
The average commercial-bank lending rate was 14.39% in July 2026. That remains far above the average rate paid on deposits.
When evaluating a loan, the advertised interest rate is only part of the cost. Fees, insurance, repayment frequency and the way interest is calculated can materially change the total amount paid over the life of the loan.
Where money market funds fit
Money market funds are different from both bank deposits and Treasury Bills. They pool investor money and place it in short-term instruments, so their published yields can change as market conditions change.
When comparing an MMF with a T-Bill or deposit account, check whether the displayed yield is gross or net of fees, whether tax is reflected, what period the yield represents and how quickly you can access your money.
A higher headline percentage does not automatically make one product better than another. Liquidity, maturity, risk, tax and charges all belong in the comparison.
The bigger lesson: compare purchasing power
The latest figures provide a useful snapshot: inflation at 6.6%, T-Bills around 8.8%–9.1%, average deposits at 6.93%, average savings at 3.53% and average lending at 14.39%.
They are not interchangeable products. But together they show what is happening to the value and cost of money in Kenya.
For savers, the useful question is not only whether your balance is increasing, but whether it is keeping pace with inflation after considering taxes, fees and accessibility. For borrowers, small differences in rates and charges can become significant over a long repayment period.
The practical habit is simple: compare the rate you earn, the rate you pay and the inflation rate separately.
Sources and further reading
- KNBS — Consumer Price Index and Inflation, August 2026 ↗
- Central Bank of Kenya — Treasury Bills ↗
- Central Bank of Kenya — Commercial Banks Weighted Average Rates ↗