Despite having more than 40 banks, commercial borrowing in east Africa's biggest economy remains stubbornly high, averaging 15 percent. Analysts put this down to lack of competition in segmented markets.
Njuguna Ndung'u Governor of the Central Bank has urged commercial banks for months to lower their lending rates to help spur growth with looser monetary policy will be more and more things like that.
Barclays, in Kenya's second largest bank by assets, said earlier this month will reduce the base rate to 13.75 percent from 15.75 percent while cutting back cooperation with the 100 basis points to 14 percent and will certainly be more than that.