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Kenyan Lending Rates Rise Despite Central Bank Efforts

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  • CBK data shows rising loan rates despite aggressive rate cuts in 2024.
  • Analysts blame lag effects, shrinking savings, and sticky credit markets for stalling recovery.

Nairobi, Kenya – Kenya’s efforts to lower the cost of borrowing are faltering as recent Central Bank of Kenya (CBK) data reveals that lending rates rose to 17.15% in October 2024, even as the central bank has aggressively slashed benchmark rates. The Central Bank Rate (CBR) now stands at 11.25% following three cuts in 2024, but banks have not passed on the reductions to consumers.

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