Interest rates on short-term government securities have now risen to highs of between four and seven years across different tranches, signalling a new round of increase in the cost of bank loans as the lenders’ expenses on deposits go up.
The rates have been rising steadily in line with the hikes in the Central Bank of Kenya (CBK) base lending rate which jumped by 1.75 percentage points to 8.75 percent last year in a bid to arrest inflation.
