Why commercial banks could be forced to lower interest rates

National Treasury Cabinet Secretary Henry Rotich.

Kenya: Commercial banks could be forced to lower interest rates further to shed off excess cash, which in most cases, finds its way into government securities. The expected development follows the scaling down of Government borrowing requirements from the domestic market.

National Treasury Cabinet Secretary Henry Rotich says Government policy of controlling interest rates through action in the money markets, has begun bearing fruits. He said state policy is to have a regime of low interest rates that would drive private investment, spur economic growth and generate more employment.