Bank CEOs expect credit growth after CBK rate cut
NAIROBI, Kenya, Oct 16 - Kenyan bank chief executives expect lending to the private sector to rise following the Central Bank of Kenya’s (CBK) recent cut Kenya breaking news | Kenya news today |..
✨ Key Highlights
Kenyan bank chief executives anticipate an increase in private sector lending following the Central Bank of Kenya's (CBK) recent interest rate cut. This optimistic outlook is attributed to a stable macroeconomic environment and low inflation, as revealed by the CBK’s Market Perceptions Survey.
- The CBK lowered the Central Bank Rate (CBR) by 25 basis points to 9.25 percent from 9.5 percent on October 7.
- Governor **Kamau Thugge** stated the move aims to maintain price stability and anchor inflation expectations.
- Credit growth could be constrained by reduced disposable incomes and cautious lending practices linked to the Risk-Based Pricing Model.
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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.
