CS Lee Kinyanjui Says Kenyan Banks Now Offer Loans at Interest Rates as Low as 12%

Trade Cabinet Secretary Lee Kinyanjui

Trade Cabinet Secretary Lee Kinyanjui says borrowing costs in Kenya have declined, with some banks charging interest rates of 12%.

He compared the current rates with averages of between 18 and 19 per cent recorded two to three years ago.

Kinyanjui attributed the reduction to prudent fiscal management, saying it had made borrowing more affordable.

He spoke during a local radio interview on Tuesday, November 3, 2026.

The Cabinet Secretary also argued that Kenya's banking sector had enough funds to support investment.

He pointed to growing deposits from Kenyans living locally and abroad as evidence of increased liquidity.

“Just about two, three years ago, you will recall that the average interest rate that you needed to pay for you to borrow money was in the range of 18, 19 and so on. But through prudent fiscal management, that number has come down and there are banks that are actually lending at about 12 per cent,” Kinyanjui said.

He maintained that access to credit was no longer the country's biggest challenge.

According to him, borrowers with sound credit histories could secure financing from local and international banks operating in Kenya.

Bank Deposits Increase

Kinyanjui said commercial banks had recorded substantial growth in deposits, creating more capacity for lending.

He cited a 9.9 per cent increase in bank deposits during the previous year.

He partly attributed the growth to increased savings by Kenyans living abroad.

“We saw a nearly 9.9 per cent increase in deposits last year. And I think this is very significant. Kenyans, if you look at remittances from Kenyans abroad, they have decided they want to put their money in their own country,” he said.

The CS argued that these deposits were available to support lending to individuals and businesses.

He also cited international banks operating in Kenya as evidence of confidence in the country's financial market.

Kinyanjui Highlights Kenya's Investment Opportunities

The Cabinet Secretary also identified Kenya's geographical position as an advantage in attracting international investment.

He cited the country's proximity to the Middle East and connections to Europe and the Far East.

According to Kinyanjui, these advantages could support growth in manufacturing, refining and logistics.

He specifically highlighted the potential of Mombasa and Lamu ports to become major transhipment centres.

Such developments could strengthen Kenya's role in serving regional and international markets.

Kinyanjui urged Kenyans to recognise investment opportunities that foreign investors were increasingly identifying.

“Our geographical positioning with respect to the continent is very significant. If you look at us in relation to the Middle East, Europe and the Far East, our strategic location is something you cannot change,” he said.

He added that investment in logistics and refining could help Kenya benefit from its strategic location.