Banks react to Central Bank Rate increase with loan hikes

CBK Governor Kamau Thugge when he appeared before the Senate Finance and Budget Committee at Parliament on December 4, 2023. [Boniface Okendo, Standard]

Banks have started steeply increasing the cost of loans, with projections that interest rates could cross unprecedented levels of above 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.