Kenyans to get cheaper loans as Uhuru signs Banking law

President Uhuru Kenyatta signing into law the Banking (Amendment) Bill, 2015 at State House, Nairobi. Looking on are Deputy President William Ruto, Attorney General Prof. Githu Muigai, Cabinet Secretary for Treasury Henry Rotich, Central Bank Governor Patrick Njoroge, Central Bank Deputy Governor Sheila M'Mbijjewe, Permanent Secretary Treasury Kamau Thugge, and Solicitor General Njee Muturi. 20160824-3 President Uhuru Kenyatta signing into law the Banking (Amendment) Bill, 2015 at State House, Nairobi. (PHOTO: COURTESY)

Lending rates will fall by more than a third after the enactment of a new law that seeks to slash the cost of credit, while handing savers better returns.

Once the new law becomes operational, banks are allowed to charge a maximum of 14.5 per cent on loans, down
from over 20 per cent. This comes into play after President Uhuru Kenyatta signed into law proposals by the National Assembly meant to protect frustrated borrowers who have been at the mercy of lenders. He defied threats from bankers and economists of harmful consequences of the law, promising to deal with the repercussions as they come.