Banks face CBK fines for not cutting lending rates

The Central Bank of Kenya(CBK) Governor Dr Kamau Thugge during an interview at his office along Haile Selassie Avenue, Nairobi on June 21, 2024.

Photo credit: File | Nation Media Group

The Central Bank of Kenya (CBK) will mete out daily fines to banks as punishment for failure to cut interest rates in the latest effort by the regulator to unlock cheaper credit for businesses.

CBK Governor Kamau Thugge said on Wednesday the regulator has started physical inspections of banks to expose and punish those that are reluctant to reduce lending rates in line with cuts on the benchmark rate.

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