CBK Survey Shows Credit Demand Rebounds as Lending Costs Ease in Kenya
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Kenyan businesses are borrowing again after a prolonged credit slump. A new CBK survey shows demand for loans is picking up as interest rates ease across the banking sector.
A new Central Bank of Kenya (CBK) credit survey indicates a rebound in demand for loans across the private sector after a period of weak borrowing activity. The findings, highlighted by Kenyan Wall Street, show that easing lending rates are gradually restoring appetite for credit among businesses and households.
The survey links the recovery to improved liquidity conditions and a shift in monetary policy that has lowered borrowing costs. Key sectors such as manufacturing, trade, and construction are leading the renewed demand for financing.
However, CBK also warns that non-performing loans and economic uncertainty remain risks that could slow sustained credit expansion. Banks are still balancing cautious lending standards with rising demand.
Analysts say the trend signals a broader stabilization of Kenya’s financial system, but future credit growth will depend on continued rate stability and stronger economic activity.