Sharp Daily
No Result
View All Result
Monday, September 1, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home News

Mbadi pushes for additional rate cuts to stimulate lending

Teresiah Ngio by Teresiah Ngio
October 18, 2024
in News
Reading Time: 2 mins read

Treasury Cabinet Secretary John Mbadi has expressed strong support for further interest rate cuts by the Central Bank of Kenya (CBK), aiming to stimulate lending to the private sector and promote job creation.

Speaking on his 50th day in office, Mbadi emphasized that reducing the benchmark rate would increase market liquidity and strengthen the economy.

“The solution to the economy is to find ways to lower the lending rates that banks charge the private sector. We want interest rates to decrease so banks can provide more funds to private businesses, creating more job opportunities and putting money in people’s pockets,” said Mbadi.

This comes after the CBK’s Monetary Policy Committee (MPC) reduced the Central Bank Rate (CBR) by 75 basis points on October 8, 2024, lowering it from 12.75% to 12%. This marks the second consecutive cut this year, reflecting ongoing efforts to boost economic activity. The rate cut is expected to encourage banks to increase lending, particularly to businesses, which in turn could lead to job creation.

RELATEDPOSTS

How Mbadi’s five-point strategy aims to boost incomes

December 2, 2024

John Mbadi sworn in as treasury CS, promises major fiscal reforms

August 9, 2024

Private sector lending has seen mixed trends in response to the economic conditions. Credit from Savings and Credit Cooperative Organizations (Saccos) increased to 11%, up from 9.3%, as borrowers sought alternative funding sources. However, private sector credit from commercial banks dropped to 1.3% in August, down from 3.7%, partly due to the appreciation of the Kenyan shilling and earlier monetary tightening.

Dr. Kamau Thugge, the Governor of the Central Bank, explained that, adjusting for exchange rate impacts, private sector credit growth would have been 4.3%. “Even with these adjustments, there is a slowdown in credit growth, particularly with loans denominated in foreign currencies,” he noted.

In addition to supporting interest rate cuts, Mbadi highlighted government efforts to clear pending bills as part of enhancing liquidity and addressing unemployment. “We have started by paying off pending bills, which will inject more liquidity into the market,” he said.

Mbadi also announced the digitization of the Kenya Revenue Authority (KRA) to broaden the tax base and improve collection efficiency. The reforms are part of a broader fiscal consolidation strategy, aimed at increasing revenue from VAT, personal income tax, and rental income tax.

Previous Post

Government launches nationwide crackdown on fuel price violations

Next Post

Gideon Moi faces scrutiny over delayed land transfer to Rift Valley Polytechnic

Teresiah Ngio

Teresiah Ngio

Related Posts

News

Kick financial goals: Invest with CMMF this football season

August 22, 2025
commercial illustrator
News

Why Kenyan private equity firms should consider continuation funds as an exit strategy

July 23, 2025
Business

Del Monte foods files for bankruptcy in USA

July 3, 2025
News

Private vs Public Pension Funds in Kenya

June 30, 2025
Investments

Investor shift to long term bonds drives oversubscription in CBK’s reopened auction

June 19, 2025
News

The real price of Israel – Iran Conflict for Kenya.

June 19, 2025

LATEST STORIES

The Importance of Including Pension Plans in Corporate Benefits Packages

August 29, 2025

The informal labor market and classical unemployment in the Kenyan context

August 28, 2025

Kenya’s Eurobond yields ease after S&P rating upgrade

August 28, 2025

Kenya’s strategic debt pivot: Smoothing, Strengthening, Sustaining

August 27, 2025

Bank on your paycheck: Invest smart with CMMF

August 26, 2025

Finding Balance: My Journey with Internet Self-Care

August 22, 2025

Why Young Kenyans Cannot Afford to Ignore Private Pensions

August 22, 2025

Strategies for Nairobi to emerge as Africa’s financial hub

August 22, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024