Costlier loans for borrowers as banks increase interest rates

Concept of lending by commercial banks to companies and individuals. [iStockphoto]

Kenyan banks have started increasing interest rates following the Central Bank of Kenya's (CBK) move to raise its benchmark lending rate.

Standard Chartered Bank is the latest bank to increase its base lending rate, as banks begin to react to the increase in the Central Bank Rate (CBR) from seven per cent to 8.25 per cent.