Nairobi, Sept. 4 -- The Central Bank of Kenya (CBK) has frozen a bid by banks to raise the cost of loans following the scrapping of lending rate controls on November 7, 2019, drawing protests from the lenders that are suffering reduced profitability.
The regulator had asked banks to submit new loan pricing formulas that would be the basis of setting interest rates on new credit in an environment where the government was not controlling loan costs.
Multiple bank executives told Business Daily that the CBK has not approved their submissions, forcing them to operate as if they are still under lending rate controls to avoid falling in trouble with the regulator.
"Getting approval is a nightmare. CBK has taken a more customer protection appro...