Banks not suffering, let them lower interest rates

PHOTO: COURTESY

It requires no expert to tell anyone that the price of a commodity is beyond their reach. The pocket easily determines that. Thus, the current debate about whether or not to regulate interest rates has been, for the ordinary person, more academic than practical.

The hard facts are that the price of money is beyond the reach of most Kenyans. While many Kenyans are just beginning to develop the saving culture, the returns on the same are dismal. It cannot be considered good business, if a deposit of Sh1,000 into a savings account earns about Sh20 after one year. Hawking peanuts would most definitely bring in more than that in a day.