Kenya Bankers Association opposes interest rate caps

Changes to Kenya's banking law that will cap commercial lending rates at 400 basis points above the central bank's benchmark rate will drive high-risk borrowers into informal financial services and damage small business, an industry body said.

The east African state's parliament passed the amendments on Wednesday at a third and final reading. The changes include a clause that will set the minimum rate for bank deposits at 70 percent of the central bank's benchmark rate.