President William Ruto has challenged Kenya’s banking sector to translate the country’s improved financial stability into cheaper and more accessible credit for households and businesses.
Speaking during the Central Bank of Kenya’s 60th anniversary celebrations in Nairobi on Thursday, September 17, Ruto said high borrowing costs continue to constrain investment, entrepreneurship and job creation despite improvements in the broader economic environment.
“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.
The President urged banks and other financial institutions to reduce the cost of borrowing and widen access to financing, particularly for small businesses and ordinary Kenyans.
He said the financial sector should play a greater role in moving money held in savings into productive economic activity, including agriculture, manufacturing, infrastructure, technology, exports and businesses.
“Our financial institutions must become better at converting Kenyan savings into Kenyan production, including financing farms and factories, businesses and infrastructure, technology, exports, and enterprises,” he said.
Ruto noted that lending rates had declined, citing a rate of 14.39 percent in July, but argued that borrowing remains too expensive for many households and businesses.
For small businesses, the cost of credit can directly affect decisions on expansion, equipment purchases, working capital and hiring. Ruto’s call therefore puts pressure on lenders to ensure that improvements in monetary and financial conditions are reflected in the cost of financing for the real economy.
The President also credited the Central Bank of Kenya with helping stabilise the financial system during a period of significant economic pressure.
He recalled that when his administration took office in September 2022, Kenya was facing high inflation, elevated food and energy prices, exchange-rate pressures and major external debt obligations.
Ruto said the CBK responded by tightening monetary policy as inflation and exchange-rate pressures intensified, while the government implemented fiscal and structural measures and addressed major external financing obligations, including the 2024 Eurobond maturity.
He said the experience demonstrated the importance of strong and independent institutions in maintaining confidence during periods of economic uncertainty.
“Strong institutions matter most when circumstances are difficult. The independence of the Central Bank is therefore not an abstract constitutional principle. It is Kenya’s economic strength,” he said.
Beyond Kenya, Ruto called for deeper financial integration across Africa, arguing that the continent needs to mobilise more of its own capital to finance development.
He said Africa holds about $4 trillion in financial assets across banks, pension funds, insurance funds and capital markets, which could provide a significant pool of financing for development if better mobilised.
“Our ambition is not to retreat from the global economy, but to engage it from a position of greater financial strength while mobilising more of our own capital for our own development,” he said.
The remarks come as the banking sector faces growing expectations to support private-sector investment, particularly by improving access to affordable financing for small businesses and productive enterprises.
The challenge now is whether lower borrowing costs and stronger financial stability can translate into increased lending to the businesses and households that drive economic activity.
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