Browsing: cost of borrowing in Kenya

• The cost of borrowing in Kenya has been going up since October last year, when it was at 10.50 per cent, before two consecutive raises.
• This means banks are likely to adjust their interest rates upwards, pushing the cost of borrowing beyond the reach of many.
• The majority of bank rates are currently above 20 per cent, amid a high default rate as banks struggle with Non-Performing Loans (NPLs).

Higher interest rates to raise the cost of borrowing in Kenya

The cost of borrowing in Kenya is set for yet another rise if banks are to factor in the latest Central Bank of Kenya increase in the base-lending rate.

The Central Bank of Kenya (CBK) has raised borrowing costs to highs last seen nearly 12 years ago, as it moves to try and contain the country’s inflation, which has started to pick.

On Tuesday, the Monetary Policy Committee, CBK’s top …