The Kenya Bankers Association (KBA), in what might be seen as a surprising move, has called for a further reduction in interest rates ahead of the Central Bank of Kenya's Monetary Policy Committee meeting.
KBA, which initially had reservations about interest rate cuts by commercial banks, revealed in research published on Wednesday that lowering the Central Bank Rates(CBR) further would encourage more borrowing in the country.
Additionally, KBA argued that such a move would help support economic growth, which has been stifled by various internal and external factors.
The announcement comes less than a week before the CBK's Monetary Policy Committee meeting, scheduled for next Wednesday.
