Ruto pushes banks to cut credit costs for Kenyans

President William Ruto has called on Kenyan commercial banks to reduce credit costs for farmers, businesses and young entrepreneurs, citing the country's improved economic stability. Speaking at the Central Bank of Kenya's 60th anniversary celebrations, Ruto noted that Kenya has transitioned from a focus on maintaining economic stability to one aimed at leveraging that stability for growth and job creation.

High inflation, food and energy crises, and pressure on the shilling led the government and the Central Bank to implement tight monetary policies and fiscal measures, resulting in higher borrowing costs for households and businesses. However, Ruto observed that inflation has eased, exchange rate pressures have subsided, foreign exchange reserves have strengthened, and market confidence has improved.

Despite these positive developments, lending rates remain high at 14.39 percent, making credit expensive for many borrowers. Ruto urged banks to ensure that the benefits of economic stability reach producers, investors and job seekers. He emphasized that strong banks should focus on facilitating economic activity rather than merely maintaining their financial health.

Ruto called for credit reforms to make financing more accessible, transparent and competitive, particularly in key sectors such as agriculture, manufacturing, infrastructure, technology, and exports. He also highlighted the importance of directing Kenyan savings towards productive sectors. Lowering credit costs would aid businesses in expanding operations, creating employment and facilitating farmers and entrepreneurs in accessing financing.

Ruto connected the push for affordable credit to financial inclusion, noting that the proportion of Kenyans with formal access to financial services has risen from 26.7 percent in 2006 to 84.8 percent in 2024. The growth in financial inclusion is largely attributed to mobile money and digital financial services. Ruto highlighted the next challenge is ensuring that access to finance translates into economic opportunities.

He urged Kenya to continue embracing new technologies, such as artificial intelligence, digital assets and emerging payment systems, while maintaining financial system security and consumer protection. The president stated that the next phase of economic policy should focus on transforming stability into investment, production, jobs and prosperity.