Banks must not have their way with lending rates

Current key rates published by the Central Bank of Kenya (CBK) indicate that the Central Bank Rate (CBR) is at 11.25 per cent, the inter-bank rate is 11.23 per cent, the central bank discount window rate is 14.25 per cent and the 91-day Treasury bills rate is at 9.955 per cent. Commercial banks are supposed to base their lending rates on the CBR and factor in an assessed weighted risk factor in addition to a premium that covers their cost of funds.