CBK boss Patrick Njoroge defends banks on increasing provision for bad loans

  Central Bank of Kenya Governor Dr. Patrick Njoroge says inflation has increased largely driven by food prices taken on 21st January 2016. PHOTO:WILBERFORCE OKWIRI

Central Bank of Kenya (CBK) Governor Patrick Njoroge has defended banks against their latest decision to cushion themselves from a deluge of rising bad debts, saying it will help protect depositors.

Responding to a question on why tax authorities view increased loan loss provisions among banks as a way to deny them taxes, Dr Njoroge yesterday said lenders are only doing so to reflect the true position in the market.