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Banks want cash rule eased to increase lending to SMEs

?Pushed to lend to small businesses, banks are now asking the Central Bank of Kenya (CBK) to relax regulation on cash reserves that requires them to set aside money for mitigating risks.

Kenya Bankers Association Chief Executive Habil Olaka yesterday said banks were ready to sign up to CBK’s charter on lending to SMEs, but want the regulator and the Government to offer subsidies in exchange.

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