KBA says banks still liquid despite investing in Govt securities
NAIROBI, Kenya, Oct 28 - The Kenya Bankers Association (KBA) says commercial banks remain adequately liquid to support private sector lending despite Kenya breaking news | Kenya news today |..
✨ Key Highlights
The Kenya Bankers Association (KBA) reports that commercial banks remain sufficiently liquid to support private sector lending, despite increased investments in government securities. This assurance comes from KBA Tax Committee Chairperson Peter Mungai, who explained that banks fulfill a dual role in financing government initiatives while maintaining their capacity to lend to businesses and households.
- Peter Mungai highlighted that attractive returns on government securities in 2023 and 2024 led to higher bank participation.
- The KBA Tax Committee Chairperson stated that weak credit uptake is primarily due to low disposable incomes, not liquidity issues, as borrowers struggle to qualify for loans.
- Mungai expects a recent decline in interest rates to stimulate renewed credit growth to the private sector and urged for broader economic interventions to boost household incomes.
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New Manufacturing Plant and Bank Funding Drive Kenyan Business Activity - October 2025
Sun King, a solar and energy appliances company, has inaugurated a new 7,600-square-meter manufacturing facility in Tatu City, Kiambu County, to localize production of smartphones and televisions. In another investment, Stanbic Bank Kenya and Stanbic Bank Uganda secured a Sh5.8 billion ($45 million) funding deal for the expansion of SBC Kenya Limited and Crown Beverages Limited. These developments occurred as property prices in Nairobi rose by 1.1 percent in Q3 2025, driven by demand for detached houses, though rental prices dipped 1.6 percent. Supporting this environment, the Kenya Bankers Association (KBA) reports that commercial banks remain sufficiently liquid to support private sector lending despite increased investments in government securities. The KBA's Tax Committee Chairperson, Peter Mungai, confirmed banks are maintaining their capacity to lend to businesses.
