The Monetary Policy Committee of the central bank has kept key interest rates unchanged at 8.75pc in its first sitting of the year.

The committee during its sitting Monday said measures taken in November last year to tighten monetary policy was "still transmitting in the economy" as inflation eased to 9.1pc in December from a high of 9.5 in November.

MPC expects inflationary pressures to abate with the importation of duty-free maize which will stabilise prices.

"The Committee will closely monitor the impact of the policy measures as well as well as developments in the global and domestic economy and stands ready to take additional measures, as necessary," said CBK Governor Dr Patrick Njoroge.