Banks' lending dips by 240b as Kenyans shun costly loans

CBK Kenya Deputy Director & Head of Digital Payment Services at the Juanita Omanga during the Kenya Travel Industry payment summit 2025 at Azure hotel , Nairobi on 27 march 2025 [David Gichuru, Standard]

Commercial banks reported a significant drop in lending last year as more Kenyans shied away from costly loans amid an economic downturn that limited their ability to borrow.

This comes despite the Central Bank of Kenya (CBK) reducing the base lending rate from 13 per cent in June last year to the current 10.75 per cent in anticipation that banks will pass on the benefits to their customers.