Disputes and litigation support digest

Kenya’s banking sector is at a turning point. The Supreme Court’s landmark ruling in Santowels Ltd v. Stanbic Bank clarified that banks must obtain Cabinet Secretary approval before adjusting lending rates, reaffirming the primacy of Section 44 of the Banking Act. 

This decision has far-reaching implications: 

1. Contractual reviews are now essential to align loan agreements with statutory oversight. 
2. Litigation risks may rise as borrowers challenge historical adjustments.
3. Transparency and consumer protection are emerging as cornerstones of compliance.
4. Operational friction may occur as approval requirements intersect with monetary policy shifts. 

PwC’s Regulatory Shifts Digest provides timely insights into:

1. The evolution of interest rate regulation in Kenya.
2. Implications of the Santowels ruling for banks and borrowers.
3. Practical strategies for compliance, risk management, and dispute resolution.

Whether you are a bank, regulator, or borrower, these shifts demand strategic, proactive responses.