Interest arbitrage on debt a perfect heist

Threatened with growing non-performing loans, banks are using credit information reporting as leverage to get customer to pay.

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Last year, a friend made the startling statement that the Central Bank of Kenya (CBK) was keeping interest rates high to assist government attract credit to itself. To achieve this objective, CBK has created what can only be described as the perfect heist for commercial banks, insurance companies and high-net-worth individuals. 

Together, they raked in Sh633 billion in interest payments last year. Legal, administratively protected, and backed by the power elite.

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