The Central Bank of Kenya (CBK) has reduced its base lending rate by 25 basis points to 9.5 percent, effective August 12. This decision aims to stimulate economic activity and lower borrowing costs amidst stable inflation and a recovering economy.

• The new base lending rate is now 9.5 percent, down from 9.75 percent.
• The decision was made by the Monetary Policy Committee (MPC) of the CBK on August 12.
• Factors supporting the rate cut include a stable banking sector, adequate foreign exchange reserves covering 4.8 months of imports, and a narrowing current account deficit.
• Diamond Trust Bank Kenya Limited had already lowered its interest rate on shilling-denominated loans from 14.41 percent to 14.21 percent per annum last month.

Absa Bank Kenya has announced a significant increase in its net profit, reaching KSh 11.7 billion for the first half of the year, a 9 percent rise from the previous year. This growth is attributed to strong operational resilience and strategic initiatives.

• The net profit of KSh 11.7 billion marks a 9 percent increase.
• The growth was driven by a 26.5 percent return on equity and stronger non-interest income streams.
• Managing Director and CEO Abdi Mohamed highlighted the relevance of their growth strategy.
• Customer deposits grew by 2.3 percent to KSh 361 billion, while total assets climbed 10.4 percent to KSh 532 billion.
• An interim dividend of KSh 0.20 per ordinary share for 2025 has been approved, payable around October 15.