Last year marked a shift in Kenya’s interest rate cycle, with loan rates easing and returns paid to depositors falling following nine successive cuts in the Central Bank Rate (CBR).
This contrasted sharply with 2024, when banks were forced to raise deposit returns to a 26-year high of 11.48 percent to lure savers away from government securities. In 2025, lower policy rates tilted the balance in favour of borrowers and banks, even as they squeezed returns for savers.
