Victory for borrowers as MPs defy Treasury and IMF to retain rate cap

Kiambu Town MP Jude Njomo, who proposed the cap on commercial banks’ lending rates. [File, Standard]

Borrowers will enjoy cheaper loans after Parliament proposed amendments to the rate cap that may bring the lending rate to 11.6 per cent.

Currently, the Central Bank Rate (CBR), which is the benchmark used to price loan interests, stands at nine per cent. Lenders are restricted to adding four percentage points, bringing the maximum interest charged to 13 per cent.