{
  "id": 17967486,
  "title": "Mbadi urges banks to lower interest rates and increase lending to businesses",
  "url": "https://urgent.news/2026/11/03/mbadi-urges-banks-to-lower-interest-rates-and-increase-lending-to",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-11-03T13:08:14.000Z",
  "source": {
    "name": "People Daily Kenya",
    "slug": "people-daily-kenya",
    "url": "https://peopledaily.digital/business/mbadi-urges-banks-to-lower-interest-rates-and-increase-lending-to-businesses"
  },
  "original_language": "en",
  "account": "Kenyan Treasury Cabinet Secretary John Mbadi called on commercial banks to reduce interest rates and boost lending to businesses, farmers, and micro, small, and medium enterprises (MSMEs). Speaking at the 2026 NCBA Economic Forum in Nairobi, Mbadi highlighted that the Central Bank of Kenya (CBK) had cut its benchmark lending rate by over four percentage points since mid-2024, yet the average commercial bank lending rate remained at 14.4 per cent. He urged banks to pass on the rate cuts to borrowers, stating that reduced government borrowing had created more room for private-sector lending. Mbadi emphasized that a strong banking sector should be measured by the productive economic activities it facilitates, not just profits. The government is collaborating with the CBK to bolster the banking sector and enhance access to affordable credit. He introduced a risk-based credit pricing model aimed at expediting policy rate changes in loan prices. Additionally, he unveiled frameworks for emergency liquidity assistance and a financial stability facility, while the National Payments System Bill 2026 aims to modernize digital payments. Mbadi also stressed the importance of the government's Credit Guarantee Scheme in unlocking bank lending for MSMEs, stating that each Ksh committed to the scheme unlocked about Ksh2.50 in bank credit. He praised the banking sector's contribution to Kenya's economic resilience, noting that assets grew by 13.1 per cent to Ksh8.9 trillion, and profits increased by 19.2 per cent to Ksh88.9 billion in the year to June 2026.",
  "summary": "National Treasury Cabinet Secretary John Mbadi has urged commercial banks to lower interest rates and increase lending to businesses, farmers and micro, small and medium enterprises (MSMEs), saying borrowers should benefit more from recent monetary policy easing. Speaking during the 2026 NCBA Economic Forum in Nairobi on Tuesday, November 3, Mbadi said the Central Bank […]",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}