President William Ruto has urged Kenya’s banks to cut borrowing costs and channel more savings into productive sectors, arguing that stronger financial conditions should deliver greater access to credit for households and businesses.
The average commercial bank lending rate stood at 14.39 per cent in July 2026, down from 14.81 per cent in January, according to Central Bank of Kenya (CBK) data.The Central Bank Rate, which influences borrowing conditions, stands at 8.75 per cent.
Ruto said the decline in lending rates was still insufficient to make credit affordable for many Kenyans and businesses. He spoke during celebrations marking the CBK’s 60th anniversary at the Institute of Monetary Studies in Nairobi on Thursday, September 17.
“Kenya does not need strong banks merely for the sake of having strong banks. We need strong banks capable of financing a strong economy,” Ruto said.
His call comes as private-sector credit growth has rebounded after a prolonged period of weak lending. CBK data shows credit growth reached 10.2 per cent in July 2026, compared with negative 2.9 per cent in January 2025.
Ruto urged banks and other financial institutions to direct more of the savings they mobilise towards agriculture, manufacturing, infrastructure, technology, exports and small businesses.
“Our financial institutions must become better at converting Kenyan savings into Kenyan production, including financing farms and factories, businesses and infrastructure, technology, exports, and enterprises,” he said.
The recovery in credit has coincided with broader improvements in financial stability. CBK reported inflation at 6.6 per cent in August, while foreign exchange reserves stood at about $15.25 billion, equivalent to 6.3 months of import cover.
Ruto recalled that he took office in September 2022 as Kenya faced high inflation, rising food and energy prices, exchange-rate pressures and major external debt obligations.
He credited the CBK with helping stabilize the economy and said the experience underscored the importance of strong and independent institutions.
“The independence of the Central Bank is therefore not an abstract constitutional principle. It is Kenya’s economic strength,” he said.
Ruto also called for greater financial integration across Africa, saying the continent should mobilize assets held through banks, pension funds, insurance funds and capital markets to finance development.
With credit growth recovering and inflation and reserves showing signs of stability, the next test for Kenya’s financial sector will be whether these gains reach borrowers through lower interest rates, more accessible loans and stronger investment in the productive economy.
