CBK Warns Banks Over Loan Rates

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The Central Bank of Kenya warned eight commercial banks of daily penalties for failing to align lending rates with recent policy cuts that lowered the Central Bank Rate from 13% to 9.5%. Governor Kamau Thugge stated that the regulator will enforce full compliance with the new uniform loan pricing model. Only six banks, including Absa, Stanbic, and Citibank, met or fell below the revised benchmark, others raised rates despite seven policy reductions in August.