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Borrowers feel tax pinch as banks review cost of loans
Banks pass on the tax charge to customers, increasing the burden on borrowers already grappling with adverse effects of the coronavirus-induced hardships. ILLUSTRATION | SHUTTERSTOCK
NCBA #ticker:NCBA and KCB #ticker:KCB have become the first lenders to increase the cost of their loans after a 20 percent excise duty tax on fees and commissions earned on loans took effect on July 1.
KCB Group in text messages to its customers on Friday afternoon said that loans advanced through the KCB M-Pesa will now attract a fee of 8.64 percent. This is up from 7.35 percent.
