Nairobi, July 19 -- The Central Bank of Kenya (CBK) has differed with the Supreme Court judgment requiring commercials banks to seek formal approval from the Treasury Cabinet Secretary before changing interest rates.

The CBK says it expects lenders to vary loan rates immediately it revises the Central Bank Rate (CBR), placing them at odds with the court's decision.

CBK Governor Kamau Thugge told bankers that monetary policy decisions are independent and should be implemented directly by banks without going through the Treasury.

This interpretation differs from that of the Supreme Court, which ruled that banks breached the law after changing their lending rates without approval from the Treasury, exposing the lenders to refunds running ...