New headache for CBK as banks freeze loans and resist lower rates

Central Bank Governor Kamau Thugge. [File, Standard]

The Central Bank of Kenya (CBK) is grappling with a new headache as banks continue to freeze loans and exhibit reluctance in lowering lending rates despite the latest reduction in the Central Bank Rate (CBR).

Thursday marked the third time this year that the regulator has cut its key lending rate, setting it at 11.25 per cent in an effort to stimulate credit access for Kenyans.