Banks should lower interest rate to spur economic growth

Central Bank of Kenya Governor Kamau Thugge. [File, Standard]

High cost of credit is one of the factors that are often cited as major barriers to Kenya's economic growth.

Ideally, loan interest rates should be at a sustainable level where the lender gets a markup and the borrower is able fulfill the need for the financing and comfortably pay back the credit. Yet, the loan rates have remained relatively high for years for both institutional and individual borrowers, resulting to ever increasing non-performing loans and penury for those unable to pay back.