Kenya’s central bank is set to cut interest rates at a second straight meeting for the first time since the Covid-19 pandemic spurred an easing cycle four years ago.

Kenya's central bank cut its benchmark lending rate to 12.00% on Tuesday, from 12.75%, the bank's monetary policy committee (MPC) said, adding that the move was aimed at boosting credit to the private sector.

The Kenyan interest rate has been cut by a large margin, the like of which was last seen during the global pandemic. The Kenyan economy has been on a recovery path given its steadily declining inflation levels since the year began.