The Nairobi Business Monthly was the first media outlet to call out commercial banks for failing to lower lending rates as directed by the Central Bank.
In the last two Monetary Policy Committee (MPC) meetings, the regulator eased the Central Bank Rate, which signals how banks should price loans.
However, banks treated these policy directives as mere suggestions and failed to implement the reductions.
This week, the regulator has summoned the CEOs of the banks to question them on why they have failed to pass on the benefits to both domestic and business borrowers, who are struggling with a sluggish economy compounded by the high cost of credit.
The meeting comes against the background of banks reporting significant increases in profits for the third quarter of the current financial year.
The cost of loans ranges between 17 per cent and 21 per cent, depending on the bank and the borrower’s credit profile.
For the full story and insights, read the November issue of NBM at epaper.nairobibusinessmonthly.com.
