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Banks blame high defaults for slow pace of loan rate cuts
Kenya Bankers Association (KBA) views further rate cuts as part of initiatives to lower interest rates on borrowing further alongside measures such as clearing pending bills.
Commercial banks have blamed the prevailing high default rates for the slow pace at which the industry is cutting interest rates on loans to customers.
The banks represented by the Kenya Bankers Association (KBA) lobby state that the persistence of high defaults means a greater risk profile for borrowers under the risk-based credit pricing formula, prompting the lenders to keep their loan costs high.
