Updated Tue, October 4th 2016 at 18:42 GMT +3NAIROBI, KENYA: The Consumers lobby group has finally sued Commercial Bank of Africa (CBA) over the controversial mobile loan rates. It has accused the top tier lender of circumventing the law by using the term 'facilitation fees' instead of interest rates, which is against the consumer interests. The lobby also wants the bank to refund consumers for the excess interest it has been charging consumers since the new law capping interest rates came into force last month. Cofek argues that CBA's main rivals--Equity Bank and Kenya Commercial Bank (KCB) have already complied with the law but the lender has chosen to comply with specific sections of the law. CBA has maintained its M-Shwari product is not developed on an interest model and is therefore exempted from the new banking law that caps interest rates.

Source: Standard Digital October 04, 2016 13:55 UTC