Kenya's central bank cut its benchmark lending rate to 9.25% from 9.50% on Tuesday, the bank's Monetary Policy Committee said.

"The committee therefore concluded that there was scope for a further easing of the monetary policy stance by reducing the CBR by 25 basis points," the committee said in a statement.

"This will augment the previous policy actions aimed at stimulating lending by banks to the private sector and supporting economic activity, while ensuring inflationary expectations remain firmly anchored, and the exchange rate remains stable."

It is the eighth meeting in a row that the Central Bank of Kenya has cut its main lending rate.