DP Kindiki hails CBK rate cut as signal of economic recovery

Deputy President Kithure Kindiki has welcomed the Central Bank of Kenya’s (CBK) latest move to lower its base lending rate, describing it as a clear indication that Kenya’s economy is regaining stability after years of depression.

The CBK reduced its benchmark lending rate by 25 basis points, bringing it down to 9.5 percent. This is expected to pressure commercial banks to lower borrowing costs and encourage credit uptake, particularly within the private sector. This also marks the seventh consecutive rate cut over the past two years by CBK

Speaking on Monday August 25, 2025, Kindiki said the rate cut reflects progress in overcoming a decade of economic turbulence marked by high interest rates, weak household incomes, and stalled investments. “Kenya has turned the corner of macroeconomic instability that had been occasioned by external and internal shocks,” Kindiki stated.

He noted that key indicators are now aligning with projections from the National Treasury, suggesting that recent government reforms are beginning to yield results. Kindiki pointed to Kenya’s improved global standing, citing a recent International Monetary Fund (IMF) ranking that placed the country as the sixth largest economy in Africa, ahead of Ethiopia and Angola for the first time.

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Despite the positive momentum, Kindiki cautioned that the real challenge lies in translating macroeconomic gains into meaningful improvements for ordinary citizens. He stressed the need to accelerate policies and programmes that directly impact household incomes, job creation, and savings.

“With the general macroeconomic indicators on a positive trajectory, the hard work ahead involves acceleration of government policies, programmes, and projects that will boost microeconomic indicators,” he said.

Kindiki also raised concerns about corruption, warning that without a sustained and non-partisan approach to tackling graft, Kenya’s economic progress could be derailed. He called for a long-term strategy to combat corruption at all levels, especially grand corruption.

“Just like the war our nation has waged on poverty over the decades, an uncompromising, long-term, and non-political strategy to defeat corruption will elevate Kenya to the first world in a generation,” he said.

By Masaki Enock

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