CBK Governor asks Parliament to scrap rate cap law

Central Bank of Kenya Governor Patrick Njoroge when he appeared before the Senate Communication, Information and Innovation Committee on the inquiry into legislative and regulatory gaps affecting competition in the telecommunication sub-sector. [Boniface Okendo, Standard]

Borrowers should brace themselves for tough times if Parliament heeds a plea from the Central Bank of Kenya (CBK) to scrap the law that caps interest rates.

While appearing before Parliament’s departmental committee on Information, Communication and Innovation on Thursday, CBK Governor Patrick Njoroge made a case against the Banking (Amendment) Act 2016 that capped lending rates at four percentage points above the Central Bank Rate (CBR).