State subsidies help spare borrowers from costly loans

CBK Governor Dr Patrick Njoroge. [David Gichuru, Standard]

Borrowers have been spared from the high cost of borrowing after the Central Bank of Kenya (CBK) retained its benchmark rate at 7.5 per cent.

In a statement, the Monetary Policy Committee (MPC), the highest decision-making organ of CBK, said the recently implemented subsidies on maize and others such as those on fuel would help stabilise prices, which might have informed the committee's decision not to raise the Central Bank Rate (CBR).