The Kenya Supreme Court has delivered a pivotal ruling mandating that banks and financial institutions must obtain approval from the Treasury prior to altering interest rates. This decision could potentially lead to a surge in litigation as customers reevaluate their existing loan agreements. With the Banking Act now firmly asserting control over interest rate modifications, the legal landscape for more than 39 commercial banks, including Standard Chartered, Diamond Trust and Co-op, may face significant scrutiny.
For further details, access the full text of the decision here.