Banks have two weeks to cut loan costs, CEOs risk jail

Commercial Banks and mortgage finance companies have been given upto September 14, 2016 to cut the cost of loans and fully implement the banking (amendment) act 2016.

In a circular sent to banks by the central bank, a financial institution that charges borrowers more than the stipulated interest rates, or gives less deposit rate than the stated rate will be fined Sh1 million or the bank chief executive will be imprisoned for 1 year.