Kenyans Brace for Expensive Loans as Banks Issue New Demands to CBK
Kenyans applying for loans could feel the impact through higher monthly repayments, while businesses seeking new financing may face higher interest rates...
✨ Key Highlights
The Kenya Bankers Association (KBA) is urging the Central Bank of Kenya (CBK) to increase the Central Bank Rate (CBR) at its upcoming Monetary Policy Committee (MPC) meeting on June 9, 2026, to combat rising inflation.
- Headline inflation has surged to 6.7% in May 2026, up from 4.4% in March, largely due to increased global oil prices.
- The Kenya Bankers Association (KBA), representing commercial banks, made the recommendation in a research note released on Thursday, June 3.
- A potential rise in the CBR could lead to higher borrowing costs for consumers and businesses in Kenya.
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KRA Reveals Billions Lost After Fuel Tax Cut Directives - June 2026
The Kenya Revenue Authority has reported a significant tax revenue loss of Ksh9.1 billion following the government decision to halve the Value Added Tax on fuel. Kenyans significantly reduced household spending in May as rising inflation forced businesses to increase prices, according to the latest Stanbic Bank Purchasing Managers Index report. The Kenya Bankers Association is urging the Central Bank of Kenya to increase the Central Bank Rate at its upcoming MPC meeting on June 9, 2026, to combat rising inflation, which could lead to more expensive loans for borrowers.
