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Why your bank loan may not get cheaper even as CBK cuts interest rates

Kenyan borrowers may not see their bank loan rates fall by as much as expected even when the Central Bank of Kenya (CBK) cuts its benchmark interest rate.

  • CBK cuts interest rates but banks may not lower loan rates accordingly.
  • Banks consider funding costs, market conditions, and borrower risk profiles.
  • Kenya Shilling Overnight Interbank Average (KESONIA) influences credit pricing.

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