# Kenya Treasury Gives Up Bank Rate Veto

> Kenya’s Treasury chief says banks should control interest rates instead of the Treasury.
- Title: Kenya Treasury Gives Up Bank Rate Veto · The Rio Times
- Summary: Kenya’s Treasury chief says banks should control interest rates instead of the Treasury.
- Keywords: kenya treasury, central bank of kenya, banking act section 44, interest rates, loan refunds, kenya bankers association, cbk governor, The Rio Times
- Source: The Rio Times — https://riotimesonline.com/kenya-mbadi-banking-act-section-44-loan-refunds-2026
- Author: Amina Diarra
- Published: 2026-11-09T19:22:06+00:00
- Read time: 1 min
- Topics: kenya treasury, central bank of kenya, banking act section 44, interest rates, loan refunds, kenya bankers association, cbk governor, news, world, politics
## Kenya Treasury Chief Announces Rate Veto Change
Kenya’s Treasury chief, John Mbadi, says the Central Bank of Kenya should approve banks’ interest rates instead of the Treasury.

> Only the CBK has the capacity for oversight and checking compliance.
## Court Ruling Requires Treasury Approval
The Supreme Court ruled on 28 June 2024 that loan interest changes need Treasury approval under Section 44 of Kenya’s Banking Act.
## Stanbic Bank Lost Supreme Court Case
Stanbic Bank Kenya lost a Supreme Court case that ordered it to refund over Sh10 million in extra interest charges.
## High Court Suspends Section 44
A High Court judge temporarily suspended Section 44 pending the Kenya Bankers Association’s appeal in August 2026.
## Banks Want Banking Act Reviewed
The Kenya Bankers Association wants the Banking Act reviewed to remove Treasury approval for interest rate changes.
## CBK Governor Says Rates Should Be Independent
CBK Governor Kamau Thugge says monetary policy decisions should be implemented directly by banks without Treasury approval.
## No Total for Potential Refunds
No total for possible refunds has been published, so the scale of exposure is unclear.
## Unclear Timeline for Refund Bill
No date has been given for a refund bill to reach Parliament, and it is unknown whether past loans are covered.
## Banks Seek Court of Appeal Decision
The Kenya Bankers Association is asking the Court of Appeal to overturn the High Court ruling that upheld Section 44.
## What This Means for Investors
Investors in Kenyan bank shares should watch for refunds, as no total has been published for potential refunds.
## Key takeaway

Kenya’s Treasury will no longer approve banks’ interest rates, shifting power to the Central Bank of Kenya after court rulings.