CBK freezes top banks’ bid to increase borrowing rates

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The Kenya Bankers Association (KBA) Chief Executive Officer Habil Olaka (left) and Central Bank Governor, Dr Patrick Njoroge. FILE PHOTO | NMG

The Central Bank of Kenya (CBK) has frozen a push by big banks to raise the cost of loans for borrowers presenting higher credit risks, drawing protests from the lenders.

The regulator had asked banks to submit new loan pricing formulas that would be the basis of setting interest rates in an environment where the government stopped controlling loan costs.

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