CBK governor Patrick Njoroge puts big banks on the spot over high interest rates

A currency dealer counts Kenya shillings at a money exchange counter in Nairobi. Average lending rates in the market had crept up to 17.4 per cent last month, up from 15.7 per cent in August and 17.2 per cent in November 2015.

NAIROBI: Large commercial banks are charging borrowers the highest interest rates, defying the Central Bank of Kenya's directive to cut the cost of credit on loans.

CBK has now summoned all banking chief executives to a meeting this morning to address the anomaly as part of a market-wide push to slash lending rates. Without giving names, Governor Patrick Njoroge said he was deeply disturbed that the large banks were now abusing their market dominance, which borders on illegality.