NAIROBI, Kenya — President William Ruto has urged commercial banks to lower lending rates, saying cheaper credit is critical to expanding businesses, creating jobs and accelerating Kenya’s economic growth.
Speaking at a financial sector event, Ruto said improving economic conditions should be reflected in more affordable loans for households and businesses.
He called on banks to ensure that greater economic stability translates into easier access to credit for ordinary Kenyans, particularly entrepreneurs who rely on financing to sustain and expand their operations.
Small Businesses Bear the Burden
Ruto identified small and medium-sized enterprises (SMEs) as a central pillar of the economy, noting their contribution to employment and wealth creation.
But many businesses continue to struggle with high borrowing costs, limiting their ability to expand, purchase equipment and hire additional workers.
The President said lower interest rates would unlock investment, especially for enterprises owned by young people and women, who often face greater barriers to accessing capital.
Lending to Productive Sectors
Ruto also called on banks to direct more credit to productive sectors, including agriculture, manufacturing, housing and technology.
He said affordable financing would raise production, strengthen supply chains and improve Kenya’s competitiveness.
Lower borrowing costs could also encourage businesses to invest and households to spend, provided inflation remains contained and lending is managed prudently.
Balancing Access and Stability
The call for cheaper credit comes as banks weigh lending rates against funding costs, liquidity conditions, monetary policy and borrower risk.
Ruto said the government, regulators and financial institutions must work together to expand access to affordable credit without undermining financial stability.
He said lower borrowing costs would give businesses greater capacity to invest, expand and create jobs as Kenya works to strengthen its economy.
