CBK should further drop its benchmark rate from 10.5% to 5%

If Central Bank of Kenya accepts to lower its lending benchmark rate commonly referred to as Central Bank Rate (CBR) from its current 10.5 to 5%, banks will consequently lower their interest rate to 9% and this will push Kenya’s profile to the topmost Countries in the World to cap interest rates on a single digit! Indeed, by the fall of interest rates in Kenya, Central Bank of Kenya must also lower it benchmark rate so that the benefit intended can be felt by the vulnerable Kenyans and if this happens, the bank interest rates will definitely come down further to 9% or there-about, making Kenya among the topmost countries in the World with a single digit interest rate. This will definitely make credit cheaper and more accessible to vulnerable Kenyans who have been on the exploitation spree by rogue banks since 1963.

 This argument of lowering Central Bank Rate (CBR) is informed by the decline of inflation in Kenya plus the decline too Treasury bill rates in the recent past.  This to me is the greatest gift Uhuru Muigai Kenyatta can give to his vulnerable Kenyans. Indeed, there is consensus among Kenyans and even among banks that CBK interest rates are too high and must also come down. The elusive question among vulnerable Kenyans currently is: why are CBK’s interest rates still at 10.5% and who determines CBK interest rates?