Bankers mull law capping interest rates

Kenya Bankers Association (KBA) grudgingly welcomed the law setting caps on bank interest rates moments after President Uhuru Kenyatta assented to the bill.

KBA is committed to bringing down loan interest rates, promoting a savings culture and enhancing consumer protection.

“We however do not feel that an arbitrary rate cap is in the best interests of the majority of people and businesses that this law seeks to support.  The reality is that there is little evidence from other countries that such interventions have helped the majority of citizens, and in a number of countries such laws have been reversed to promote financial inclusion.”

“However, we as the banking industry remain committed to addressing the fundamental issues that drive up the cost of credit.”

Meanwhile, the banks will comply with the law as they continue to provide financial services to their customers.