Banks loan rate jumps to two-year high on demand

Kenya Bankers Association (KBA) CEO Habil Olaka speaks at a past event. PHOTO | SALATON NJAU | NMG

The average interest charged on loans by Kenya’s commercial banks has risen to its highest level in two years amid increased demand for credit as the economy recovers from Covid-19 disruptions.

The latest data by the Central Bank of Kenya (CBK) shows the lending rate hit 12.17 percent in February –the highest since February 2020 when it stood at 12.19 percent.

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