Banks face loan refunds after illegal rate increase

Former Transport Minister Amos Kimunya speaking at a past interview on of February 17, 2014.

Photo credit: File | Nation Media Group

Banks face refunds worth billions of shillings for illegal loan charges after courts ruled that lenders cannot alter interest rates on credit without formal approval from the Treasury Cabinet Secretary.

The High Court last week rejected a petition from the bankers’ lobby—the Kenya Bankers Association (KBA)—to declare Section 44 of the Banking Act unconstitutional.

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.