Kindiki: Low lending rate cuts have stimulated economic growth

Deputy President, Kithure Kindiki says the country has now recovered from macroeconomic instability that had been occasioned by external and internal shocks.

In a statement, the Deputy President said that the Central Bank of Kenya (CBK) has again reduced its rate for lending to commercial banks by 25 basis points, to 9.5pc.

He noted that the high interest rates that have been responsible for slow economic growth.

Kindiki said the reduction is the seventh since the CBK began interest rate cuts two years ago, from a high of 15.75pc.

With inflation rate remaining low at between 3 and 4 per cent over the last six months down from.9.6pc in 2022, the Kenya shilling remaining stable at 129 to the dollar for a year and half now from a high of 165 to the dollar, and import cover now approaching the six months record, Kindiki said the country’s economy has now stabilized.

Kindiki said the government is now focused on implementing policies, programmes, and projects, that will boost micro economic indicators such as household incomes, savings and job creation.