Kenyan banks have denied introducing new charges on loans that has left customers with the same monthly installments they had before the introduction of the interest rates cap.
According to the Kenya Bankers Association (KBA) said that the charges that borrowers are complaining about have been in force and that some may not have known about them due to a “lack of customer awareness.”
“If a bank has not got approval from the central bank for a new charge, then the charge does not stand. However, if the charge has been there and it has been approved by the central bank and only that the customer has not been made aware and now he has been made aware then that charge is legal.”
Borrowers who had hoped that their monthly loan repayments would drop with the cap in interest rates have complained that their banks have introduced new charges that have left their instalments unchanged.
The Central Bank of Kenya (CBK) on Monday ordered banks to reverse any new charges without regulatory approval.