Paul Arithi 
The increase in lending comes as the cost of borrowing continues to come down.Average commercial bank lending rates decreased to 14.4% in September 2026, from 17.2% in November 2024.
Lending to the private sector also grew to 10.6% in September, up from 10.3% in August.
The banking industry is also reporting improved loan repayments, with the share of loans that are not being repaid on time, measured by the gross non-performing loan (NPL) ratio, declining to 13.9% in September 2026, from 14.8% in June and 17.6% in August 2025.
While the growth in lending shows that banks are increasing their support for small businesses, the next priority is to reach more businesses,including businesses borrowing from banks for the first time and those that have previously struggled to access credit.
There is also a need for more long-term financing to help businesses buy equipment,expand their operations,invest in productive activities and create jobs.
Progress will be measured not only by how much money banks lend,but also by how many businesses can access financing and how effectively they use it to grow, create jobs, and contribute to the economy.
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