CBK Governor Kamau Thugge Says Banks Can Change Interest Rates Without Treasury Approval

Central Bank of Kenya Governor Kamau Thugge said commercial banks can adjust lending rates without Treasury approval following monetary policy changes. He emphasized that monetary policy is independent and banks should immediately respond to MPC decisions on the Central Bank Rate. This stance reignites debate over Section 44 of the Banking Act, after a 2024 Supreme Court ruling requiring Treasury approval for rate increases.