Deputy President Kithure Kindiki says Kenya has overcome the period of macroeconomic instability triggered by both external and internal shocks.
In a statement, Kindiki announced that the Central Bank of Kenya (CBK) had once again lowered its lending rate to commercial banks by 25 basis points, bringing it down to 9.5 percent.
He pointed out that high interest rates had been one of the main factors slowing down economic growth.
According to Kindiki, this marks the seventh reduction since the CBK began cutting rates two years ago, down from a peak of 15.75 percent.
“The central Bank of Kenya (CBK) has again reduced its rate for lending to commercial banks by 25 basis points, to 9.5%. This is a first in almost a decade of high interest rates that have been responsible for slow economic growth.
The reduction is the seventh since the CBK began interest rate cuts two years ago, from a high of 15.75%,” the DP said.
He highlighted key gains, noting that inflation has stayed low – between 3 and 4 percent over the last six months compared to 9.6 percent in 2022. The Kenya shilling has also held steady at 129 to the dollar for the past year and a half, down from a high of 165 to the dollar, while import cover is nearing a record six months. These indicators, he said, confirm that the country’s economy has now stabilized.
“Kenya has turned the corner of macro economic instability that had been ocassioned by external and internal shocks. The latest International Monetary Fund (IMF) statistics show that Kenya is now the 6th largest economy in Africa, up from number 8, overtaking Ethiopia and Angola,” Kindiki noted.
Kindiki emphasized that the government is now prioritizing policies, programmes, and projects aimed at strengthening microeconomic indicators such as household incomes, savings, and job creation.
“With the general macro economic indicators on the positive trajectory, the hard work ahead involves acceleration of government policies, programmes and projects that will boost micro economic indicators such as household incomes, savings and job creation. Kenya is on the rise,” he asserted.
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