Lenders face penalties for hidden loan charges amid pushback on Treasury's role

CBK Governor Kamau Thugge when he appeared before the National Assembly Committee on Finance and National Planning at Bunge Towers, Nairobi, on March 25, 2025. [Elvis Ogina, Standard]

The Central Bank of Kenya (CBK) is intensifying its crackdown on hidden charges in the pricing of loans with a landmark proposal that will, for the first time, compel mobile lenders to transparently outline all borrowing costs or face penalties.

This came as local lenders moved to court to lock out the National Treasury from having a say in how they price their loans.