CBK rejects banks' rate cap claims, digs in on Ruto's loan reforms

CBK Governor Dr Kamau Thugge before the National Assembly's Committee on Finance and National Planning on March 25, 2025. [Elvis Ogina, Standard]

The Central Bank of Kenya (CBK) has dismissed commercial lenders' claims that its proposed loan pricing reforms amount to a return to "interest rate capping," escalating a deepening rift over President William Ruto's push for cheaper credit.

Governor Kamau Thugge, in a robust response to the Kenya Bankers Association (KBA), reiterated the regulator's commitment to a "transparent and efficient credit market," while rejecting the banks' concerns as unfounded.