Major Kenyan commercial banks are under scrutiny for their slow response to the Central Bank of Kenya’s (CBK’s) recent interest rate cut, prompting criticism from the regulator about their reluctance to lower lending rates. The CBK reduced its benchmark interest rate by 25 basis points to 9.50 percent in mid-August, aiming to stimulate economic activity.

• The CBK cut its benchmark interest rate to 9.50 percent, the third reduction this year and seventh since last year.
• CBK Governor Kamau Thugge stated the Monetary Policy Committee (MPC) saw scope for further easing.
• NCBA Group is the first major bank to respond, cutting its Kenya shilling base rate by 25 basis points to 13.52 percent effective September 20 for variable-rate loans.
• The CBK’s July 2025 CEOs Survey noted that while 69 percent of firms reported declining bank lending rates, the reduction was "marginal at two percent and below."
• Private sector credit growth improved marginally to 3.3 percent in July, still far below the CBK’s ideal range of 12 to 15 percent.