MP in plan to cap loan rates

Sirisia MP John Waluke is sponsoring the CBK (Amendment) Bill, 2015 to address increase in the cost of loans.

There have been concerns that local interest rates, which determine the cost of accessing credit, are at overly high levels compared to global banking markets.

This has left bank customers in Kenya with existing loan facilities, debit or credit cards, or mortgages burdened with huge repayments. The situation is set to get worse as commercial banks adjust their base rates upwards to reflect the recent increase in the Central Bank Rate (CBR)— the price at which the Central Bank of Kenya (CBK) lends to other commercial banks.