Banks raise lending rates amid cut on depositors’ returns

The Central Bank of Kenya, Nairobi.

Photo credit: File| Nation Media Group

Commercial banks increased interest rates for the third straight month to an average of 17.22 percent in November, despite cutting the returns on customers’ deposits in an environment of falling base lending rates.

The latest Central Bank of Kenya (CBK) data shows that the latest average lending rates, which were last seen eight years ago when they averaged 17.66 percent in August 2016, marked a rise from 17.15 percent in October.

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