Deputy President Kithure Kindiki now says banks will soon be forced to look for Kenyans and give them loans.
Speaking on Tuesday during a consultative forum with leaders from Meru County at his Karen residence, Kindiki noted that banks were not giving businesses loans since the government was borrowing from the banks.
The DP noted that the government will no longer be borrowing from banks and they will be forced to lend their money to Kenyans.
“Banks were not lending businesses money because the government was borrowing that money now we are not borrowing that money so the banks will be forced to come and look for customers to give credit the way it was during the first years of President Mwai Kibaki’s administration,” said Kindiki.
The second in command also noted that banks will again reduce their base lending rates in March 2025.
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"These interest rates you have seen Equity Bank, Cooperative Bank, and KCB reducing by between 2 and 3 percent, next month they will go down again,” Kindiki added.
Banks in Kenya have been dropping their lending rates after the Central Bank of Kenya (CBK) cut the base lending rate to 10.75 percent and reduced the cash holdings requirement for banks to 3.25 percent in order to boost lending to the private sector.
Co-operative Bank lowered its base lending rate from 16.5 percent per annum to 14.5 percent per annum while KCB reduced its base lending rate from 15.6 percent to 14.6 percent.
Absa reduced its lending rate from 17.5 percent to 16.5 percent while Equity its rate to 14.39 percent.
