President Uhuru Kenyatta must apply Solomonic wisdom on interest rates Bill

Stephen Mutoro

NAIROBI: The Banking Act (Amendment) Bill presents a dilemma to President Uhuru Kenyatta. There will be consequences whether he assents to it or not.

President Kenyatta’s men in charge of fiscal and monetary policies have opposed the Bill. In their arguments, they believe with little or no evidence, interest rates will climb down by themselves on a “free market economy” paradigm.
Like them, Kenya Bankers Association (KBA), believes capping interest rates will deny credit to “high risk borrowers” who they fear would be lured to the “black market” of shylocks.