Battle shifts to Bonds after Uhuru’s assent to Bill

President Uhuru Kenyatta signing into law the Banking (Amendment) Bill, 2015 at State House, Nairobi. Looking on are Deputy President William Ruto, Attorney General Prof. Githu Muigai, Cabinet Secretary for Treasury Henry Rotich, Central Bank Governor Patrick Njoroge, Central Bank Deputy Governor Sheila M'Mbijjewe, Permanent Secretary Treasury Kamau Thugge, and Solicitor General Njee Muturi.  24th August,2016

After President Uhuru Kenyatta signed a Bill capping interest rates on bank loans into law, now the battle shifts to the bond market. Lenders will work to bid up the 91-day Treasury bill rate while the Government will strive to bring it down.

This is because for the Government not to be seen as bringing down lending rates, it will stop accepting bids way above the the Central Bank benchmark rate or CBR.