Banks fail to pass benefit of rate cut over to consumers

Central Bank of Kenya Governor Patrick Njoroge. FILE PHOTO | NMG

Some banks have failed to pass benefits of the cut in the base lending rate to borrowers, a new report by the Central Bank of Kenya (CBK) says.

In its Markets Perception Survey report for July, the CBK says that some respondents indicated that loan repayment terms have been altered following the rate cut to ensure that borrowers continue paying the same amounts in monthly instalments as before.

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Note: The results are not exact but very close to the actual.