Bank loan rates increase to highest level in 52 months

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The Central Bank of Kenya in Nairobi. FILE PHOTO | NMG

The cost of bank loans hit a 52-month high in December in the wake of the Central Bank of Kenya (CBK) rate hikes and rising yields on government paper.

Data from the CBK show the average lending rate rose to 12.67 percent in December from 12.22 percent in May last year when the banking regulator first raised rates in nearly seven years.

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