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Credit crunch bites as banks in Kenya play it safe after rate cap law

Central Bank of Kenya building. More strict reporting requirements by the regulator have translated into more bad loans for lenders. [PHOTO: FILE/STANDARD]

Commercial banks are tightening loan request approvals, making it harder for borrowers to access credit.

Central Bank of Kenya (CBK) yesterday said there was a sharp rise in the number of loan applications since August – when the law capping interest rates came to effect.

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