CBK’s Sh7.5bn licence fee signals costly bank loans

Central Bank of Kenya

Central Bank of Kenya.

Photo credit: File | Nation

The cost of loans is set to rise again as the Central Bank of Kenya (CBK) prepares to increase annual licensing fees by 22 times to Sh7.5 billion amid possible resistance from lenders.

Draft regulations show that the CBK wants to charge banks one percent of revenues as permit fees as opposed to a token flat rate, citing an “increasingly complex” regulatory and supervisory role.

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