Banks and financial institutions must seek the approval of the Cabinet Secretary for National Treasury before increasing interest rates on loans and facilities advanced to customers, the Supreme Court has held.
A bench of five judges of the apex court presided by Chief Justice Martha Koome also held that Sections 44 and 52 of the Banking Act do not contradict or prohibit banks and financial institutions and their customers from bargaining and entering into a mutual contract concerning interest rates that will be applied to loan facilities.
