Five steps to manage a hike in interest rates

Dollars and an apple on the antique scales in the concept of interest rates. [Getty Images]

The Central Bank of Kenya (CBK) recently announced an increase in its lending rate by 75 basis points. This means that the rate at which CBK lends money to commercial banks will increase from 7.5 per cent to 8.25 per cent.

It also means that commercial banks will increase by the same margin, or even higher, what they charge their clients when lending them money.