Kenya lowers interest rates to 10.75% to stimulate economic growth and control inflation.

Kenya's central bank lowered its benchmark interest rate to 10.75%, from 11.25%, to boost economic growth, which slowed to 4.0% in the third quarter of 2024. The move is aimed at stimulating credit and economic activity while maintaining inflation below 5%. The bank also cut the Cash Reserve Ratio to 3.25% to encourage lending. On-site inspections will ensure banks pass on the reduced costs to customers, with penalties for non-compliance. The CBK forecasts 5.4% GDP growth in 2025, driven by agriculture, services, and government projects.