Borrowers stare at high rates as Central Bank of Kenya eyes free market

Confident businesswoman calculating tax at desk in office

Borrowers who rushed to take advantage of the attractive borrowing rates may be startlingly staring at expensive loans if the banks will be handed a free hand in the pricing of loans.

Central Bank of Kenya (CBK) Governor Patrick Njoroge, who on many occasions has hit out at lenders over high interest rates, now says it is clear that Kenya is headed back to free market forces and that the cap was only to be temporary.