Like other central banks around the world, policymakers in the East African nation put in place a range of easing measures at the onset of the coronavirus pandemic in March and April, to try to cushion damage to the economy wrought by the crisis.
The bank said in a statement that indicators for the third quarter of the year showed a strong recovery experienced in the second quarter.
"This ... is supported by agricultural production, increased activity in key sectors particularly services with the easing of COVID-19 restrictions, normalisation of exports ..." it said.
The bank has cut the benchmark lending rate by a total of 125 basis points at the onset of the crisis, lowered the cash reserve requirements for commercial banks and allowed them to restructure distressed loans.
Commercial banks have so far restructured loans 1.12 trillion Kenyan shillings ($10.33 billion), equivalent to 38% of the total outstanding loans of 2.9 trillion shillings for the industry, the bank said, helping borrowers hard-pressed by the impact of the pandemic.
The finance ministry said earlier this month Kenya's economy was expected to grow by less than 2.5% this year, as more evidence of the economic damage caused by the novel coronavirus crisis shows.
($1 = 108.4000 Kenyan shillings)
(Reporting by George Obulutsa and Omar Mohammed; editing by Emelia Sithole-Matarise)
By George Obulutsa and Omar Mohammed
