NAIROBI, Kenya- President William Ruto has called on financial institutions to make credit more affordable and accessible, saying Kenya’s improved economic stability must now support investment, business expansion and job creation.
Speaking during celebrations marking the Central Bank of Kenya’s 60th anniversary in Nairobi, Ruto said lending rates remained high despite the easing of monetary policy.
“The Central Bank Rate now stands at 8.75 per cent. Lending rates have declined, but at 14.39 per cent in July, credit remains expensive for many Kenyans and their businesses,” Ruto said.
He said the next phase of Kenya’s economic programme should focus on converting stability into growth that benefits households, farmers, businesses and young entrepreneurs.
“Stability is not prosperity. It is the foundation on which prosperity must be built,” he said.
The President said Kenya needed financially sound banks capable of funding farms, factories, infrastructure, technology, exports and enterprises.
“Kenya does not need strong banks merely for the sake of having strong banks. We need strong banks capable of financing a strong economy,” he said.
Ruto also defended the economic measures adopted by the government and CBK following the pressures Kenya faced in 2022, including high inflation, rising food and energy prices, pressure on the shilling and expensive access to international financing.
He said CBK tightened monetary policy to control inflation and stabilise the exchange rate while the government addressed fiscal pressures and the 2024 Eurobond maturity.
According to the President, the measures increased borrowing costs and required difficult fiscal decisions but helped moderate inflation, strengthen foreign-exchange reserves and ease pressure on the shilling.
He reaffirmed the independence of CBK, describing it as a critical part of Kenya’s economic strength.
“The independence of the Central Bank is therefore not an abstract constitutional principle. It is part of Kenya’s economic strength,” he said.
Ruto also highlighted the expansion of formal financial access, which rose from 26.7 per cent of Kenyan adults in 2006 to 84.8 per cent in 2024, largely because of mobile money and digital financial services.
He said the country must now move beyond financial inclusion and ensure access to finance enables families to build security and businesses to invest.
The President called for secure regulation of artificial intelligence, digital assets and emerging payment technologies to protect public confidence in the financial system.
At the continental level, Ruto urged African central banks to deepen financial integration and make cross-border payments faster and cheaper.
He said Africa holds more than $4 trillion in assets across banks, pension funds, insurance funds and capital markets, which could be mobilised to finance infrastructure, agriculture, industry and technology.
The Central Bank of Kenya was established in 1966, replacing the East African Currency Board and assuming responsibility for the country’s monetary policy and financial stability.
