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Banks ploy to increase loan charges exposed

Consolidated Bank Banking Hall. [Photo by Wilberforce Okwiri/Standard]

Commercial banks have increased or introduced new loan approval fees to capitalise on the increased appetite for loans in the wake of a cap on interest rates.

A new study by the Central Bank of Kenya (CBK) found that commercial banks have shifted lending to the Government and large corporates, while imposing new fees on individual and small businesses seeking loans.

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