Kenyans in the informal sector now have a reason to smile following the announcement by CBK to drastically reduce lending rates in loans offered by local banks across the country.
Issuing the new directive, the CBK governor, Patrick Njoroge noted that the new move is geared towards anchoring the inflationary expectations.
‘'The overall inflation rate in the country is expected to substantially decline and remain just within the Government's target range within the projected short-term,” read part of the governor's statement.
Njoroge further said that CBK will continue its push in monitoring developments in the country's economy, and use the various provisions within its disposal to ensure continued stability in the financial sector.
The governor, however, stated the stability that is currently being recorded by the banking industry following the reopening of the incapacitated Chase Bank has increased competence and confidence in the country's economy. He, therefore, encouraged small entrepreneurs to take advantage of the reduced lending rates to establish themselves and boost their small businesses.