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Rate cap a bold experiment that failed

A jua kali artisan makes a frying pan at Kibuye market in Kisumu. Banks cut credit to small enterprises because of their perceived high risk. [Collins Oduor, Standard]

In 2016, Kenya capped bank interest rates, which meant borrowers could not be charged beyond a certain rate. Few wanted to say it loudly, but the rates were controlled.

No one wanted to appear old fashioned. I am one of the few who stuck their heads out and opposed the move. I argued that the move made political but not economic sense.

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