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.