President William Ruto has urged commercial banks to lower loan interest rates and make credit more affordable for Kenyans.
Ruto made the call on Thursday, September 17, 2026, during celebrations marking the 60th anniversary of the Central Bank of Kenya (CBK).
Ruto Pushes for Cheaper Credit
The President said Kenya’s improved economic stability should benefit borrowers. He pointed to the decline in the Central Bank Rate (CBR), which currently stands at 8.75%.
However, commercial banks continue to charge an average lending rate of 14.39%, according to CBK data for July 2026.
Ruto argued that banks should pass the benefits of lower monetary policy rates to households and businesses.
CBK Rate Cuts
The CBK has reduced its benchmark rate as inflation pressures have eased. The regulator retained the CBR at 8.75% during its August 11, 2026 meeting.
Meanwhile, inflation stood at 6.6% in August 2026. CBK also reported foreign exchange reserves of about $15.25 billion, equivalent to 6.3 months of import cover.
Why Loan Rates Matter
Lower lending rates could reduce borrowing costs for households and businesses. For small businesses, cheaper credit could support expansion, working capital and investment.
Farmers could also access financing at lower costs. However, banks consider several factors when setting individual loan rates, including borrower risk, operating costs and the pricing of credit.
Therefore, a reduction in the CBR does not automatically produce an equal reduction in every loan rate.
What Borrowers Should Watch
Borrowers should monitor announcements from their banks following the President’s call. Customers with variable-rate loans can also check whether their repayment terms change after any official rate adjustments.
For now, Ruto’s call puts renewed focus on the gap between the CBK’s benchmark rate and commercial lending rates.
