The Central Bank of Kenya (CBK) has published new regulations quadrupling the penalties that commercial banks will pay for failing to disclose the true cost of credit to customers, sustaining the pressure on the lenders already feeling the heat from the law capping interest rates.
The draft regulations on penalties for banks, mortgage companies and credit reference bureaus indicate that the CBK will impose the maximum penalty of Sh20 million for every violation arising out of customer complaints on charges and other cases of non-compliance with the Banking Act and Prudential Guidelines.
