President William Ruto has turned the spotlight on the high cost of bank loans, telling commercial lenders that Kenya’s improving economic conditions must now be reflected in the price of credit available to farmers, businesses and young entrepreneurs.
Ruto said Thursday, September 17, 2026, that the country had passed through a period when the priority was to shield the economy from major shocks and was now ready to use greater stability to expand investment, production and employment.
He spoke during celebrations marking 60 years of the Central Bank of Kenya, where he said the country had taken difficult economic decisions after facing high inflation, food and energy shocks, pressure on the shilling and a heavy external debt burden.
According to the President, the Government and the Central Bank were forced to tighten monetary policy and introduce fiscal measures in response to those challenges.
Ruto said the steps helped protect the economy but also made borrowing more expensive for households and businesses.
He said the situation had since changed, with inflation easing, pressure on the exchange rate reducing, foreign exchange reserves improving and confidence in the market growing.
The change in economic conditions has also allowed monetary policy to be eased, with the Central Bank Rate currently at 8.75 per cent.
Despite the lower policy rate, Ruto raised concern over the continued high cost of commercial loans.
He said lending rates stood at 14.39 per cent in July, making it difficult for many borrowers to access affordable financing.
The President said the improvement in the wider economy should benefit people looking for money to invest, grow businesses or create new enterprises.
He particularly pointed to farmers who need funds for investment, businesses seeking to increase their operations and young people looking for capital to establish viable ventures.
Banks told to back economic growth
Ruto said the role of banks should go beyond maintaining strong financial positions, arguing that their contribution should also be seen in how they support economic activity.
“Kenya does not need strong banks merely for the sake of having strong banks. We need strong banks capable of financing a strong economy,” Ruto said.
He called for changes in the credit system to make productive financing easier to obtain, while ensuring that borrowers have access to credit through a market that is transparent and competitive.
The President said money saved by Kenyans should be put into areas that can increase production and support economic growth.
He listed agriculture, manufacturing, infrastructure, technology, exports and other enterprises among the sectors that should receive financing.
Ruto said reducing borrowing costs would give businesses room to invest and expand their operations, while also creating jobs.
He added that more affordable financing would give farmers and entrepreneurs greater access to the capital they require for their activities.
Digital finance faces new test
The President also placed the push for affordable credit within Kenya’s wider progress in financial inclusion.
He said formal access to financial services among adults had grown from 26.7 per cent in 2006 to 84.8 per cent in 2024.
Ruto credited mobile money and digital financial services with driving much of that expansion.
He said the country’s next task was to ensure that simply having access to financial services results in real economic opportunities.
“Connecting people to finance was the first revolution. Connecting finance to opportunity is the next,” he said.
Ruto said Kenya would need to keep adopting emerging technologies as the financial sector changes, citing artificial intelligence, digital assets and new payment systems.
He said the adoption of these technologies should not come at the expense of trust and safety within the financial system.
According to Ruto, payment systems must remain secure while consumers must be protected as new financial products, credit options and services enter the market.
He said Kenya’s economic policy should now concentrate on using the stability achieved so far to increase investment, production and employment and improve prosperity.