Kenyans are going to access loans at cheaper interests for the next two months following a report by the Central Bank of Kenya that lowered the base lending rate.

The base lending rate has been lowered for the third time consecutively. It has dropped by 75 basis points from 12% to 11.25%.

This according to CBK governor Kamau Thugge will stabilize inflation which currently stands at 2.8%. “Overall inflation is expected to remain below the mid-point supported by lower food inflation owing to improved supply from the ongoing harvests, favourable weather conditions and lower fuel prices,” he stated.

“Another factor that inspired the committee’s decision to cut the lending rates is the Kenya shilling’s stability against major currencies including the United States Dollar (USD).

“The local currency has progressively stabilised for the last ten months, maintaining its incredible streak as the best perfoming currency in 2024.

“The banking sector remains stable and resilient with strong liquidity and capital adequacy ratios. Banks have continued to make adequate provisions for the non-perfoming loans,” it was stated on the report