Relief on Loans as CBK Cuts Lending Rates
The rate determines how banks price their loans...
✨ Key Highlights
Kenyans can anticipate continued access to more affordable loans as the Central Bank of Kenya (CBK) announced a further reduction in borrowing rates. The Monetary Policy Committee (MPC) cut the Central Bank Rate (CBR), the benchmark for commercial bank lending, by 25 basis points.
- The CBK reduced the CBR to 9.25% from 9.50% during its meeting on October 7, 2025.
- This decision is expected to boost demand for cheaper loans and mortgages, directly influencing commercial banks' lending rates.
- Kenya's overall inflation stood at 4.6% in September 2025, remaining below the midpoint target of 5% ± 2.5%.
- The CBK expects inflation to remain stable due to stable energy prices and exchange rate stability, with improved agricultural production also contributing.
- A revised Risk-Based Credit Pricing (RBCP) model will be fully operational by March 2026 to enhance transparency in loan pricing.
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CBK Cuts Lending Rates; Government Launches NYOTA Youth Grants and Job Vacancies - October 2025
The Central Bank of Kenya's Monetary Policy Committee cut the Central Bank Rate by 25 basis points, a move expected to lead to more affordable loans. President William Ruto has launched NYOTA (National Youth Opportunities Towards Advancement), a program offering Sh50,000 grants and training to over 820,000 young Kenyans. Separately, the Kenyan government announced over 60 job vacancies across various agencies, including Clerk of Works positions at the National Housing Corporation with a salary of Ksh60,000 per month. At the county level, the Kisumu County Government has launched a housing renewal program to replace old homes with modern high-rise apartments.
