Borrowers brace for costly loans from commercial banks

From next month, bank customers will face higher loan charges and mortgage repayments will also increase as CBK raises its base lending rate to tame weakening shilling. [PHOTO: FILE/STANDARD]

The decision by Central Bank of Kenya’s top policy organ, the Monetary Policy Committee (MPC) to schedule another meeting for August 5, 2015 must have sent a chill down the spine of many individual households struggling to service their loans from commercial banks.

Not spared from financial anguish are developers who rely on money from banks to put up real estate properties, manufacturers who survive on overdrafts to meet customer demands and farmers who need to purchase inputs such as fertiliser and pesticides.