This archive report was first published on 10 December 2019.
Kenya National Chamber of Commerce and Industry's chairman Jimnah Mbaru has urged the Central Bank of Kenya to reduce the cash reserve ratio to three percent to ease liquidity and boost private sector lending.
According to Mbaru, the current ratio of 5.25 percent is hindering businesses, particularly women-led enterprises, from accessing loans at lower interest rates.
He noted that the lending environment has been tough over the last three years, following the capping of loan rates and delayed bill payments by government entities.
On Tuesday, Mbaru said that reducing the cash reserve ratio would support businesses and boost the government's efforts in financing domestic debt.
"A consideration to lower the rate will reduce the cost of financing its domestic debt, with zero inflation, given the continued adequate rainfall and stability of oil prices," Mbaru said.
