Borrowers headed for tough times as CBK raises benchmark rate

People with loans from banks are likely to pay more in the coming months for this service. This is after the Central Bank of Kenya (CBK) raised the rates at which it lends to other commercial banks from 10.00 per cent to 11.50 per cent.

While the new measures are likely to deal with rising inflationary pressure in the economy, it will be a wait and see situation, to see whether the local foreign exchange market, which has been responding to a strong US dollar on the global market, remains calm.