Unease over 'unclear' CBK rules on distribution of repaid loans

The Central Bank of Kenya in Nairobi.

Photo credit: File | Nation Media Group

New Central Bank of Kenya (CBK) rules have triggered anxiety among non-deposit-taking credit providers (NDTCPs), with analysts raising concerns about non-clarity in the set order of distributing proceeds from loans repaid by borrowers.

The regulations published by CBK Governor Kamau Thugge suggested that funds from loan repayments to NDTCPs will first offset the principal amount, then fees and charges, and finally interest.

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