President William Ruto has called on commercial banks to reduce the cost of borrowing and make credit more accessible to households and businesses.
The President said lower lending costs would help stimulate economic activity by enabling businesses to access financing for expansion, investment and job creation, while easing financial pressure on households.
Ruto urged banks to respond to changing economic conditions by ensuring that improved liquidity and monetary conditions translate into more affordable credit for borrowers.
The call comes amid continued efforts to strengthen Kenya’s economic recovery and support private-sector growth. High borrowing costs have remained a concern for businesses, particularly small and medium-sized enterprises that rely heavily on bank financing.
The President’s remarks place renewed focus on the relationship between monetary policy, bank lending rates and the cost of credit to consumers and businesses.
Reducing borrowing costs could improve access to financing, but the extent to which banks lower lending rates will also depend on their funding costs, credit risks and overall operating conditions.
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