Bank CEOs Expect Credit Growth After Rate Cut; DTB Reports Rise in SME Lending - October 2025

Kenyan bank chief executives anticipate an increase in private sector lending following a recent interest rate cut by the Central Bank of Kenya (CBK). According to the CBK’s Market Perceptions Survey, this optimism is attributed to a stable macroeconomic environment and low inflation. Similarly, Diamond Trust Bank (DTB) Kenya reported a significant increase in lending to Small and Medium-sized Enterprises (SMEs), attributing it to an improving economy, easing inflation, and lower interest rates. However, the same CBK survey revealed that seven in ten CEOs expect the expiration of the African Growth and Opportunity Act (AGOA) to negatively impact their businesses. CEOs anticipate AGOA's expiry will lead to increased import costs and reduced export volumes.