Nairobi, Feb. 22 -- Commercial banks advanced Sh228.2 billion new loans to businesses and households in 2025 as falling interest rates raised demand for credit in the economy.

Data from the Central Bank of Kenya (CBK) capturing absolute monthly credit flows show the lenders raised net disbursement to the private sector from a contraction of Sh53.6 billion in the year to December 2024.

September 2025 marked the highest monthly credit flow at Sh79.3 billion while January, February and August were outlier months as absolute credit flows marked a contraction.

The recovery in private sector lending has coincided with pressure from the CBK on lenders to cut interest rates with the apex bank slashing its own benchmark rate in 10 consecutive p...