In Kenya, there has been a negative relationship between inflation, commercial bank loan volumes and core lending rates . This is because as inflation expands, the volume of lending by commercial banks in Kenya decreases. On the other hand, there is a positive connection between base lending rates and inflation rates. As inflation rises, base lending rates also rise. The examination sought to establish whether the comparative pattern occurs in Kenya Commercial Bank Limited. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay Banking in Kenya is represented by the Companies Act, the Banking Act, the Central Bank of Kenya Act and various prudential regulations issued by the Central Bank of Kenya (CBK). The division of money maintenance was changed in 1995 and trade controls were lifted. Kenya's financial system is among the largest and most developed in sub-Saharan Africa, with a large portion of money. Banks, non-account foundations, microfinance organizations and social housing associations are managed by the National Bank of Kenya. The Central Bank of Kenya (CBK) has taken on a vital job in planning and implementing the coordinated money strategy to achieve and maintain low inflation as one of its key objectives. Since its founding in 1966, the CBK has used a money-focused system to pursue the inflation target. The financial approach procedure has been and continues to be founded on the assumption that cash is important, that managing money totals has a real impact on the performance of the economy, particularly inflation. Although investment banks' lending rates are dictated by various factors outside the control of the CBK, the monetary approach committee which is the key strategic body of the national certified receipts that modifies fundamental changes in the retail and retail markets credits, including the presentation of progress in managing account items, can play a noteworthy role in influencing a downward pattern of investment bank lending rates. In Kenya, normal lending rates have declined from a figure of 19% in 2002 to an average of 13% over the past five years of operation. Regular bank lending rates dropped from 13.74% in December 2006 to 12.56 per cent in October 2007. There are various factors that have influenced lending rates, including inflation, government agreements, the macroeconomic factors and the particular factors of the banks, for example: quantifiable profit and taking care of the expenses of the task. Lending is the most important administration that business banks provide to their customers, in other words banks give advances and advances to people, government and business associations. Investment banks are the most critical organizations for reserve funds, preparation and allocation of money-related resources, so these works make them an essential marvel in monetary development and progress. In carrying out this work, it is necessary to understand that banks have the potential, scope and prospects to prepare money-related assets and allocate them to profitable ventures. In this way, regardless of the origins of the nation's salary age or financial approaches, investment banks would take care of granting advances and advances to their various clients remembering the three standards that guide their tasks which are, benefit, liquidity and dissolvability.Chodechai (2004), exploring the factors that influence financing costs, the level of loan volume and the definition of collateral in banks' credit choice, emphasizes that banks must be cautious with their valuation choices regarding loans as banks cannot charge too low advances because the wage premium proceeds will not be enough to cover shopping expenses, general costs and loss of income from some borrowers who do not pay. Additionally, charging too high down payment rates can also be an unfavorable choice circumstance and pose good risks to borrowers. Be that as it may, the choice of investment banks to grant advances is influenced by a number of factors, for example, the overall cost of financing, the volume of shops, the level of their residential and external activities, the percentage of liquidity of the bank, notoriety and open recognition to specify a couple. The loan fee is the amount charged as level of importance by a money lender to a borrower for using the benefits based on the level of risk which is the remuneration for the loss of using the benefit by the bank. Inflation is a key factor determining investment bank lending rates around the world. As indicated by Santoni (1986), inflation deteriorates the esteem of the money with the ultimate objective that an increase in the inflation rate results in a comparative reduction of the rate in the esteem of the national money. Overall, inflation scholars attribute inflation to money-related causes and erroneous changes in the monetary framework. The performance of commercial banks has been considered a problem in emerging countries. This wonder is attributed to the essential work of investment banks in the economy. Furthermore, money saving efficiency is essential for taxpayers, owners, potential speculators and deal makers since banks are the valid agents of the administration's fiscal approach. This suggests that bank lending volumes may depend primarily on the performance of commercial banks. Taner's (2000) study on the effects of inflation vulnerability on layaway markets reveals that fickle inflation increases financing costs, decreases the supply of credit, and influences prepaid interest. This suggests that an inflation within inflation could increase bank lending rates and lead to low bank lending volumes. Emon (2012) confirms this statement and states that moneylenders are extremely aware that inflation distorts the estimate of their money in the day and age of an advance, so they increase the costs of the loan to compensate for the loss. The expanded lending fees could therefore impact any investment bank's acquisition plans. This also suggests that there is a positive connection between inflation rates and lending rates, although the degree to which one influences the other at different times is uncertain. As indicated by Mishkin and Collins (1995), banks or investors who pay a fixed interest rate on advances or deposits will lose the power to capture from their income advantage while their borrowers will benefit. A positive inflation outcome is achieved by debt relief where indebted people who have debts with a fixed apparent interest rate will see a decrease in the real cost of financing as the inflation rate increases. “Genuine” enthusiasm for an advance is the apparent rate minus the inflation rate. This way, if you take out an advance, with a financing cost of 15% and the inflation rate is at 5%, the loan rate.