Sharp Daily
No Result
View All Result
Saturday, August 9, 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

Kenya slashes interest rate to 10.75% in bid to boost lending

Teresiah Ngio by Teresiah Ngio
February 6, 2025
in News
Reading Time: 2 mins read

Kenya’s Central Bank has once again reduced its key interest rate in a bid to stimulate lending and boost economic growth, marking the fourth consecutive reduction. Governor Kamau Thugge announced the decision on Wednesday, with the Monetary Policy Committee (MPC) lowering the benchmark rate to 10.75%, down from 11.25%. This adjustment, the lowest rate in nearly two years, comes in response to a slowdown in economic activity observed during the first half of 2024.

In its report released on February 5, the MPC cited a deceleration in economic growth as a major factor behind the rate cut. The committee stated, “Overall inflation is expected to remain below the 5% midpoint of the target range in the near term, supported by stable core inflation, low energy prices, and exchange rate stability.” These factors, according to Thugge, provided the necessary conditions for the rate reduction.

The MPC also took into account global economic trends, noting that central banks in major economies have continued to lower interest rates, with further reductions expected. This global pattern aligns with Kenya’s ongoing efforts to ease its monetary policy while maintaining financial stability.

Governor Thugge emphasized that the rate cut was intended to support economic activity following a slowdown. Preliminary data suggests that Kenya’s economy grew by 4.6% in 2024, down from 5.6% in 2023. However, the central bank remains optimistic about the future, projecting a growth rate of 5.4% in 2025, driven by the resilience of key sectors like services and agriculture, along with an expected rebound in private sector credit growth and improved exports.

RELATEDPOSTS

CBK lifts 10-year moratorium on new bank licenses

April 17, 2025

How the Kenyan government makes money by printing money

February 18, 2025

As part of the broader effort to increase liquidity, the MPC also reduced the Cash Reserve Ratio (CRR) by 100 basis points, bringing it to 3.25%. The committee has also initiated on-site inspections of banks to ensure that they pass on the benefits of lower funding costs to customers.

The Central Bank’s policies aim to boost credit growth and support Kenya’s economic recovery as it navigates the challenges of 2024.

Previous Post

Exploring real estate investment options for small investors in Kenya.

Next Post

Nairobi revives plans to tackle city center congestion

Teresiah Ngio

Teresiah Ngio

Related Posts

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
Economy

Resilient but strained: Kenyan firms speak out in May 2025 CEO survey.

June 19, 2025

LATEST STORIES

Segregated Pension Schemes in Kenya Q2’2025 Performance

August 8, 2025
Asset allocation dividing an investment portfolio among different asset categories.

Building a Retirement Portfolio in Kenya

August 8, 2025

Steps banks can take to align with fair lending practices

August 7, 2025

The hidden cost of outdated economic statistics

August 7, 2025

EABL posts 12.2% profit surge, strengthens regional footprint despite rising illicit trade

August 1, 2025
1049795356

Maximizing Your Pension Contributions

August 1, 2025

The functional role of narrative in financial markets

August 1, 2025

Tanzania’s protectionist shift and what it means for Kenyan entrepreneurs and regional trade

July 31, 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