Low interest rates regime was long overdue, now utilise it

For signing the Banking (Amendment) Bill 2015, today, we applaud President Uhuru Kenyatta for standing with Kenyans. Our commendation goes just beyond the promise of cheaper loans, to the awareness by the President that there could be unintended consequences which he gave an undertaking to address.

The Bill that caps interest rates at 4 per cent above the indicative Central Bank Rate (CBR) currently at 10.5 per cent is a godsend to Kenyans weighed down by what most of them think is an exploitative banking sector. Banks will now have to cap their rates at no more than 14.5 per cent. The rates currently range between 18-24 per cent.