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Kenyans to Enjoy Lower Interest Rates on Loans
In a move expected to ease borrowing costs, the Central Bank of Kenya (CBK) has reduced its benchmark lending rate from 10.00% to 9.75%. The announcement was made on Tuesday, June 10, 2025, following a Monetary Policy Committee (MPC) meeting chaired by CBK Governor Dr. Kamau Thugge.
Why the Lending Rate Was Reduced
The MPC noted that there is adequate room to ease monetary policy without risking inflation or the stability of the Kenyan shilling. The rate cut is intended to boost economic activity by lowering borrowing costs for individuals and businesses while maintaining macroeconomic balance.
“The MPC will closely monitor the impact of this policy decision as well as developments in the global and domestic economy and stands ready to take further action as necessary,” the CBK stated.
How This Affects You
With the lending rate now set at 9.75%, banks are expected to gradually lower their own lending rates, making personal loans, mortgages, and business credit more affordable. This comes as a relief to many Kenyans dealing with high credit costs amidst tough economic conditions.
Read also:CBK Cuts Interest Rates: What Does It Mean for Kenya’s Economy in 2025?
When Is the Next MPC Meeting?
The next Monetary Policy Committee meeting has been scheduled for August 2025, where further reviews on inflation, exchange rates, and economic performance will determine future policy direction.
For the latest updates on financial policy, stay tuned to Central Bank of Kenya or follow trusted news sources.
