CBK's confusion that may jeopardize cheap loans in Kenya

Central Bank of Kenya has completely failed to clear the air on three main issues that may jeopardize the implementation the new Banking Amendment Act, 2016. These confusions brought by CBK are as follows;

1.  The first confusion is whether the banks should use the Central Banks Rate (BBR) or the Kenya Banks’ Reference Rate (KBRR) in the implementation of the Act. The question has been whether the base rate to be used by banks is the CBR or the Kenya Banks’ Reference Rate (KBRR) or there is another new rate to be introduced by the regulator? The truth of the law on this confusion is that the interest rates capping estimates should be derived from the KBRR rate of 8.9 per cent plus four per cent which equals 12.9 per cent and not the 14.5 per cent. The base rate should be the KBRR and not CBR as used today!