Today's Headlines
- Lessons and Implications of the Confirmation of Charges Against Kenya's 'Ocampo Four'
- Finance Minister Quits Over ICC Charges
- Shortage of HIV Test Kits Raises Concerns
- Living On the Edge in Turkana Region
- Ali Breaks Silence, Describes Delight At Acquittal
- Uhuru, Ruto Eligible for Presidency - CIC
- Tea Sector Posts Record Earnings in 2011
- Resettle IDPs, Urges Annan
- Uhuru, Muthaura Have Done the Right Thing
- All Displaced People Should Return Home
- Concern Raised As Parents Shun Schools in Poll Violence Hotspots
- Ruling On IEBC Hiring in February
- Country Working Towards Conditions Needed for Direct Flights to U.S.
- How ICC Claimed Kibaki's Lieutenants
- Geothermal Project to Receive Sh10 Billion Funding Boost
- Five Million to Get IDs Before Elections
- Speed Up Building Port
- Uhuru and Muthaura Did Well to Quit Posts
- A Full Plate Awaits Githae
- Clashes Continue in Moyale
- Baraza Case to Be Heard Monday
- Two Firms in Joint Venture to Drill for Oil Near Lodwar
- Exit Uhuru, Muthaura
- ICC Charges Hound Uhuru Out of Treasury
- Consumers Grow Despite Inflation
- Poor Relations Between Banks Blamed for Cash Shortages
- Fish Prices Up As Vegetable Supply Dwindles
- Consumers to Pay More for Milk and Bread As Prices Rise
- Kibaki Tasks Ex-Dar CJ to Lead Probe in Kenya
- Mombasa Port Cargo Congestion Forces Three-Month Fees Waiver
Kaburu Mugambi
2 August 2010
Nairobi — A Central Bank of Kenya survey has found that all banks expect to grow credit lending in the remainder of 2010 with 41 per cent projecting an increase of over 10 per cent.
Banks that plan to increase their lending by more than 20 per cent rose from eight per cent in May 2010 to 14 per cent in July 2010.
Central Bank governor, Prof Njuguna Ndung'u on Monday said lower lending rates, introduction of credit reference bureaus and increased demand for growing small and medium enterprises are expected to boost credit uptake.
On the other hand, 60 per cent of private sector firms polled expects their demand for credit to increase in the remainder of the year.
"Economic recovery is on course with increased optimism for enhanced growth in 2010 hence the need for banks to increase credit to private sector," Prof Ndung'u told reporters in Nairobi.
He said that the growing confidence in the economy and other factors such as the East African common market offer significant growth opportunities for the country.
"Banks should enhance lending to meet expected demand from the private sector, the governor said.
Last week, Central Bank unexpectedly slashed its benchmark interest rate to six per cent from 6.75 percent to encourage commercial banks to further cut their lending rates.
