CBK Cuts Lending Rate to 9.5% Amid National Debt Debates and Procurement Talks - August 2025

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. The action comes as Kenya grapples with a soaring debt burden and its impact on funding essential services, sparking a debate on fiscal adjustments. Debt servicing costs are consuming a significant portion of national revenue, forcing tough choices in public spending. Concurrently, Ben Farrell, the Global CEO of the Chartered Institute of Procurement and Supply (CIPS), is in Nairobi for a week-long visit. His trip from August 8–15 is to engage leaders on procurement and supply chain issues, signaling significant developments for CIPS's East African strategy.