Mass default fears as CBK loan rate hits 11-year high

The Central Bank of Kenya (CBK) has increased the benchmark lending rate to levels last seen 11 years ago to curb inflation and support the battered shilling, elevating the risk of loan defaults for individuals and businesses.

The Monetary Policy Committee (MPC) on Tuesday increased the CBK rate to 12.5 percent from 10.5 percent, the highest since September 5, 2012, when the rate was at 13 percent.