Kenya’s Finance Minister urges central bank to lower lending rate

Kenya’s Finance Minister, John Mbadi, has called for the central bank to reduce its lending rate in light of the recent decline in inflation.

The Kenyan government aims to maintain an inflation target of 2.5% to 7.5% in the medium term. Recent data shows that inflation dropped to 3.6% year-on-year in September, down from 4.4% in August and 4.3% in July.

“Inflation is firmly under control now,” Mbadi stated during a Senate appearance. “We believe the central bank should begin lowering interest rates to encourage the private sector to take more loans and create job opportunities.”

The central bank is expected to announce its next interest rate decision on October 8.