Borrowers to be hit as CBK raises benchmark rate to tame shilling

Haron Sirima, Central Bank of Kenya deputy governor chaired the MPC meeting, which was brought forward by a month. [Photo:FILE/STANDARD]

Consumers are set to pay higher interests on their loans and mortgages as the Central Bank of Kenya yesterday beat analysts’ expectations to issue the most aggressive rate hike in more than two years on the country’s benchmark lending rate.

In a bid to lower pressure on the shilling, the CBK’s monetary policy committee yesterday raised the base lending rate by 150 basis points to 10 per cent, up from the 8.5 per cent that has been held since May 2013.