Net credit extended by Kenyan commercial banks reached 99.4 billion shillings in September 2026, their highest monthly level in at least five years, according to Central Bank of Kenya data analysed by Business Daily and published on October 12.
The amount exceeds the previous peak of 88.8 billion shillings recorded in May 2026. It reflects the monthly change in the outstanding credit stock and does not necessarily represent the gross total of new contracts signed, since repayments, restructurings and portfolio changes can alter the net flow.
Private sector loan growth reached 10.6% year on year in September, compared with 10.3% in August and a contraction of 2.9% in January 2025. The central bank reported strong demand in trade, construction, agriculture, finance, insurance and consumer durable goods.
The average bank lending rate fell back to about 14.4% in September, after a peak of 17.2% in November 2024, according to Business Daily. This decline lowers the cost of financing for businesses and households, although the rate each borrower pays still depends on their risk profile, loan term and applicable fees.
The credit recovery follows the cut in the central bank rate from 13% in August 2024 to 8.75% in February 2026. The Monetary Policy Committee kept the rate at 8.75% at its meeting on October 7, judging that this stance remained consistent with anchoring inflation and supporting economic activity.
The acceleration in lending has also been accompanied by an improvement in the non-performing loan ratio, which fell to 13.9% in September, its lowest level in forty-four months according to data reported by Business Daily. Part of this decline may, however, come from growth in the denominator as total credit outstanding rises, not only from a fall in the value of defaulted loans.
For businesses, the movement signals broader access to working capital and investment financing. It does not, however, show how the 99.4 billion shillings is divided between households and companies, nor how concentrated lending is between large groups and small enterprises.