Banks eye more rate cuts, struggle to lower loan costs

The Central Bank of Kenya (CBK) Governor Dr Kamau Thugge.

Photo credit: File | Nation Media Group

Commercial banks want the Central Bank of Kenya (CBK) to further trim its indicative lending rate during its next policy meeting on Tuesday, even as they admitted difficulties in passing on the benefits of previous rate cuts to borrowers.

The banks say the apex has more headroom to reduce the benchmark rate from the current 10.75 percent, on stable inflation and exchange rate and on the need to rejuvenate private sector credit growth.

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