KBA says banks will comply with law capping lending rates

Kenya's bank industry body said on Wednesday its members will comply with an amended law signed by President Uhuru Kenyatta capping lending rates, but said it felt an arbitrary rate cap was not in the best interests of most people and businesses.

"The reality is that there is little evidence from other countries that such interventions have helped the majority of citizens, and in a number of countries such laws have been reversed to promote financial inclusion," the Kenya Bankers Association said in a statement.