The rate cut was in line with expectations, and comes as the U.S.' reciprocal tariffs kicked in, with a 26% levy slapped on goods coming in from India.

Kenya's central bank cut its benchmark lending rate by 75 basis points to 10.0% on Tuesday, the bank's monetary policy committee said. It was the fifth monetary policy meeting in a row that the rate has been lowered.

Bank of America Securities said the RBI is clearly moving into an easing cycle, having delivered two consecutive rate cuts along with significant liquidity support over the past three months.