Banks warn of more expensive loans as inflation climbs sharply

NCBA Group Managing Director John Gachora. [David Njaaga, Standard]

Individuals and companies should brace for costlier loans as expectations from commercial banks grow over further rate hikes by the Central Bank of Kenya (CBK) in the next few months.

The regulator’s Monetary Policy Committee increased the Central Bank Rate (CBR) to 7.5 per cent at the end of May to tame inflation, which hit 6.47 per cent in April.