CBK Cuts Loan Rates, Kenya’s Debt Hits Ksh11.8 Trillion

Cheaper Loans as CBK Cuts Rates, Kenya’s Debt Hits Ksh11.8 Trillion, and Govt Dissolves 109 Companies

Hello, I’m Annah. Welcome to today’s edition of The Business Roundup. In this issue, we highlight how Kenyans will enjoy cheaper loans after the Central Bank of Kenya (CBK) lowered interest rates, Kenya’s debt hitting Ksh11.8 trillion, and job losses following the government’s dissolution of 109 firms, among other top business stories.

Kenyans are set to enjoy cheaper bank loans following the Central Bank’s decision to lower its benchmark lending rate by 25 basis points to 9.25 percent.

In a statement released on Tuesday, October 7, the Monetary Policy Committee (MPC) said that the decision was made after concluding that there is room for further easing of the monetary policy without compromising inflation stability or the exchange rate.

“The Monetary Policy Committee (MPC) decided to lower the Central Bank Rate (CBR) by 25 basis points to 9.25 percent from 9.50 percent, during its meeting held on October 7, 2025,” read the statement.

Subscribe today and stay updated on top news stories in The Kenya Times Business Roundup. The Roundup presents a compilation of business stories that hit headlines throughout the week

A Photo Of National Treasury Cs John Mbadi. Photo/Parliament — A photo of National Treasury CS John Mbadi. PHOTO/Parliament

Cheaper Loans as CBK Cuts Rates

The move is meant to support economic activity while ensuring inflationary expectations remain firmly anchored and the exchange rate remains stable.

“The MPC will closely monitor the impact of this policy decision as well as developments in the global and domestic economy and stands ready to take further action as necessary in line with its mandate,” read the statement in part.

Kenya’s Debt Reaches Ksh 11.8 Trillion

Treasury Cabinet Secretary John Mbadi has disclosed that Kenya’s public debt has reached Ksh11.81 trillion, representing 67.8% of the country’s Gross Domestic Product (GDP) as of June 2025.

Speaking at a press briefing on Tuesday, October 7, Mbadi stated that, in present value terms, the debt stood at 63.7% of GDP—a level he described as sustainable but marked by a heightened risk of distress.

According to Treasury, the total debt stock comprises Ksh6.33 trillion in domestic obligations and Ksh5.48 trillion in external debt owed to key development partners and creditors, including the World Bank, the African Development Bank (AfDB), China, and Eurobond holders.

During the 2024/25 fiscal year, the government made Ksh 1.72 trillion in debt service payments, with Ksh 1.14 trillion paid to domestic lenders and Ksh 579 billion to external creditors.

Mbadi noted that the National Treasury has adopted several measures aimed at reducing debt vulnerabilities and improving long-term sustainability.

“To mitigate the prevailing debt vulnerabilities, the National Treasury has embarked on a suite of liability management operations, encompassing the refinancing of high-cost obligations, extension of debt maturities, and increased uptake of concessional financing to improve debt sustainability metrics,” he explained.

Govt Dissolves 109 Companies

A section of Kenyan employees is staring at job losses after the government, through the Registrar of Companies, announced the dissolution of at least 109 companies.

In a gazette notice dated Friday, October 3, Deputy Registrar of Companies Hiram Gachugi announced that the companies ceased operations in the country effective September 29.

“Pursuant to section 897 (4) of the Companies Act, it is notified for the information of the general public that the following companies are dissolved and their names have been struck off the Register of Companies with effect from the date of publication of this notice,” read the notice in part.

The list features companies from a wide range of sectors, including real estate, hospitality, logistics, construction, consultancy, and technology.

Among the affected firms are Alba Property Management Limited, Champagne Ridge Villas Limited, Karen Redbrick Hotel Limited, Stargate Scientific EA Limited, and Rak Ceramics and Sanitary Ware Limited.

Others include Finsight Kenya Limited, Grandala Builders and Contractors Limited, Goodison Seventy-Four Limited, Mbao Pension Limited, Nurture Vocational Training Center Limited, and Streamline Your Business Info Limited.

The dissolved entities also span various service industries, including education, insurance, travel, and financial consulting, such as Shelly Academy Limited, Scanner Insurance Broker Limited, and Tia Capital Limited.

Cbk Kenyans Looking For Jobs — National Jobs Recruitment Program Concludes in Lower Eastern Counties. PHOTO/ Alfred Mutua

ALSO BIG THIS WEEK

The KCB Group has terminated the employment of 34 employees across its regional operations as part of an effort to combat fraud and misconduct.
The Kenya Union of Savings and Credit Co-operatives Ltd (KUSCCO) has announced the second phase of a major public auction targeting over 80 properties nationwide.
Central Bank of Kenya (CBK) Governor Dr. Kamau Thugge has revealed that only one commercial bank has so far submitted its pricing model for new loans based on the Kenya Shilling Overnight Interbank Average (KESONIA) model.
The Kenya Revenue Authority (KRA) has set a new record by collecting Ksh 85.146 billion in customs taxes in September 2025, the highest monthly figure.
Safaricom will temporarily close several of its shops across Kenya on Thursday, October 9, to accommodate an internal staff event, which will affect customer services in multiple regions.
Kenyan asset-financing company M-KOPA has reported a major financial turnaround, posting a Ksh 1.2 billion ($9.2 million) profit in 2024 after years of losses.
Kenya has finalized a currency conversion deal with China for its Standard Gauge Railway (SGR) loans, a move expected to save the country approximately $215 million (Ksh27.79 billion) annually in debt servicing costs.
Naivas Supermarket announced the appointment of Andreas von Paleske as its new Chief Executive Officer, effective November 1, 2025, replacing David Kimani Mukuha.
Kenya Power and Lighting Company (KPLC) has announced a profit after tax of Ksh 24.47 billion for the financial year ended June 30, 2025, a dip from the Ksh 30.80 billion recorded in 2024.