Private-sector credit growth accelerates to 10.6pc in September
The Central Bank of Kenya said lending grew strongly in trade, building and construction, agriculture, finance and insurance, and consumer durables.
Kenya's private sector saw a surge in credit growth, reaching 10.6 percent in September 2026, up from 10.3 percent in August 2026 and rebounding from a 2.9 percent decline in January 2025. The Central Bank of Kenya (CBK) reported that lending expanded robustly across trade, construction, agriculture, finance, insurance, and consumer durables.
Despite the credit expansion, commercial banks' average lending rate rose slightly to 14.4 percent in September 2026 from 14.3 percent in August 2026, still well below the 17.2 percent rate in November 2024. The CBK maintained its key policy rate at 8.75 percent during a meeting on October 7, 2026. The bank lifted its 2026 economic growth forecast to 5 percent, up from an earlier 4.9 percent prediction, citing strong performance in the industry and services sectors.
Businesses remain optimistic about economic activity, buoyed by macroeconomic stability, government infrastructure spending, digital innovation, and improved access to credit, according to the CBK's CEOs and Market Perceptions Surveys. The banking sector remains stable, with low non-performing loan levels and strong liquidity and capital adequacy.
However, inflation remains a concern, rising to 6.8 percent in September 2026, with core inflation at 4.0 percent. The CBK anticipates inflation to stay within target levels due to monetary policy and government interventions, while also expecting above-average rainfall to help curb food prices in the near term.
Written by urgent.news from Capital Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
