Posted 12/6/2023, 2:42:19 AM
CBK Hikes Interest Rates to 12.5%, Highest in Over a Decade, As Kenyans Grapple With Rising Loan Costs and Weakening Shilling
- CBK raised its benchmark lending rate to 12.5%, the highest level in 11 years, to curb inflation and support the shilling
- The rate hike will lead to more expensive bank loans for borrowers already struggling with high prices and new deductions
- Banks' average lending rates have been rising, with many customers now paying over 18%
- Loan defaults have hit levels last seen 16 years ago during the post-election violence period
- Weakening of the shilling has increased external debt servicing costs by Sh382.6 billion in 4 months