×
App Icon
The Standard e-Paper
Fearless, Trusted News
★★★★ - on Play Store
Download App

It’s premature to raise loan penalties

(Photo: Courtesy)

The decision by commercial banks to raise penalties charged to loan defaulters was premature and required more discussions with stakeholders before tougher sanctions were introduced.

As it stands now, defaulters will pay between 15 and 20 per cent on the outstanding amount, up from about six per cent in some banks.

Get Full Access for Ksh299/Week.
Bold Reporting Takes Time, Courage and Investment. Stand With Us.
  • Unlimited access to all premium content
  • Uninterrupted ad-free browsing experience
  • Mobile-optimized reading experience
  • Weekly Newsletters
  • MPesa, Airtel Money and Cards accepted
Already a subscriber? Log in