Why CBK, banks are fighting over cheaper credit

Central Bank of Kenya in Nairobi. [File, Standard]

Banks are pushing for a further cut in the Central Bank’s benchmark lending rate at its meeting Tuesday, arguing that low inflation and a stable Shilling provide room to stimulate sluggish private sector credit growth.

In a research note, the Kenya Bankers Association (KBA), the industry lobby, said the Central Bank of Kenya’s (CBK) Monetary Policy Committee (MPC) should lower the Central Bank Rate (CBR) from its current 9.50 per cent when it meets today to enable banks to lend cheaply.