The Central Bank of Kenya (CBK) has lowered its benchmark lending rate, known as the Central Bank Rate (CBR), by 25 basis points to 9.0% its ninth consecutive cut since early 2024.
The decision, made during the CBK’s Monetary Policy Committee meeting on 9 December, aims to make borrowing cheaper for households and businesses, stimulate bank lending, and support broader economic growth.
According to the CBK, private‑sector credit has started to recover modestly, and inflation remains well‑contained within the bank’s target range.Â
With November inflation reported at around 4.5%, and the exchange rate stable, the environment was deemed appropriate for further monetary easing.
The rate cut is expected to lower interest costs for borrowers including small businesses, mortgages, and personal loans potentially enhancing investment, consumption, and financial inclusion. Banks are anticipated to adjust their lending rates downward in the coming weeks.
Source: Reuters
By Michelle Ndaga
