Less domestic borrowing good for stability

Stability in the prices of goods and services, lending rates and the value of the shilling exchange rate is critical for the proper functioning of a market-based economy.

It is out of this realisation that the Government has been doing everything possible to restore stability in the macroeconomic environment, and rebuild confidence among investors and the business community. For instance, rising interest rates, high inflation and the falling value of the shilling against other major international currencies have weighed heavily on the country’s economic performance by reducing consumer and business spending.