CBK @60: Ruto tells banks to lower cost of credit as shilling and reserves strengthen

On September 17, 2026, President William Ruto urged Kenya's banking sector to lower the cost of credit and improve its accessibility, emphasizing that recent economic stability now deserves concrete benefits for ordinary Kenyans. In a post on X, Ruto highlighted the performance of key economic indicators to illustrate this improved stability, mentioning the exchange rate, inflation, and foreign exchange reserves.

During the 60th anniversary celebrations of the Central Bank of Kenya (CBK) in Nairobi, Ruto praised the bank for its role in maintaining financial system stability amid volatility and pressures. He pointed out that the shilling now trades at approximately KSh129 to the US dollar, inflation has moderated to 6.6 percent in August, and foreign exchange reserves have reached a record high of $15.25 billion.

These achievements demonstrate the CBK's success in safeguarding economic stability. Ruto called on commercial banks to follow suit by reducing borrowing costs and increasing credit accessibility, arguing that this would enable households to invest, businesses to expand, and jobs to be created, thereby stimulating economic growth.

Currently, the average commercial bank lending rate stands at 14.39 percent, compared to the CBK's policy rate of 8.75 percent. The president's call underscores the importance of transmitting the positive shifts in monetary and financial conditions to borrowers, especially businesses and households dependent on bank financing. The CBK, founded in 1966, is tasked with maintaining price stability and promoting sustainable economic activity, as well as managing Kenya's foreign exchange reserves and ensuring financial-sector stability.