Mr. Peter Macharia Kamau, the Founder, Chief Executive Officer, and Managing Director of Jijenge Credit Limited, has welcomed the Central Bank of Kenya’s recent decision to reduce the base lending rate. Kamau commended the move as a positive step that will stimulate a more competitive credit environment and potentially attract more borrowers across the country.
In a statement, Kamau expressed his appreciation for the Monetary Policy Committee’s (MPC) decision to cut the Central Bank Rate (CBR) by 50 basis points, bringing it down to 10.75%. The MPC also lowered the Cash Reserve Ratio (CRR) by 1% to 3.25%. These measures are aimed at boosting economic activity by increasing the accessibility of credit to businesses and individuals.
"Thank you to the Monetary Policy Committee for cutting the CBR by 50bps to 10.75% & lowering the CRR by 1% to 3.25%. These measures aim to support economic activity by enhancing credit access," Kamau said.
Kamau noted that while the MPC's actions were a step in the right direction, it is equally important for banks and financial institutions to pass on these benefits to the borrowers. He emphasized that the true impact of the policy shift will depend on whether banks reduce their interest rates, making credit more affordable for both businesses and individuals.
“While the MPC's actions are a step in the right direction, it is crucial for banks to pass on these benefits by offering lower interest rates to businesses and individuals,” Kamau added.
Jijenge Credit Limited, which focuses on providing credit solutions to underserved markets, is optimistic that this rate reduction will create a more favorable environment for its operations and the broader financial ecosystem. Kamau's comments align with the growing call for financial institutions to make credit more accessible and affordable, especially in light of the ongoing economic challenges faced by many Kenyans.
The reduction in the CBR is expected to offer relief to both consumers and businesses, potentially leading to lower borrowing costs, increased investment, and improved economic growth in the country.
