More pain for borrowers as big banks pass on interest rate hike

Federation of Kenya Employers President Dr Habil Olaka with Jacqueline Mugo, Executive Director & CEO during a past press briefing on the high cost of living and doing business. [File, Standard]

Banks have started steeply increasing the cost of loans, with projections that interest rates could reach unprecedented levels of nearly 30 per cent, a record rate last witnessed two decades ago.

This is expected to leave borrowers with a massive debt servicing burden when the high cost of living is already squeezing Kenyans hard.