At the 2026 NCBA Economic Forum, Treasury Cabinet Secretary John Mbadi urged Kenyan banks to reduce the cost of credit to consumers and channel the savings into the real economy.

Mbadi noted that although the Central Bank of Kenya has cut the Central Bank Rate by four percentage points since mid‑2024, average lending rates remain high at 14.4 %.

He said the government’s reduced borrowing from banks frees balance‑sheet capacity, which should be redirected to businesses, farmers, manufacturers and micro‑small and medium enterprises.

The call comes as Kenya faces rising inflation, which hit 7.3 % in October due to higher fuel costs and potential disruptions from the Middle‑East conflict.

NCBA Group projects Kenya’s GDP growth at 4.8 % this year, slowing to 4.5 % next year, with weaker performance in services and industry sectors.

NCBA’s Director for Global Markets, Raphael Agung, highlighted Kenya’s resilience so far, citing steady growth, government spending and stable liquidity as supportive factors.

World Bank Division Director Dr Qimiao Fan warned that high public debt—over 70 % of GDP—and a large fiscal deficit limit fiscal space and could crowd out private investment.