Kenya: No More Lending Controls in Kenya As Rate Cap 'Dies'
Global, Africa, Kenya
Borrowers in Kenya should now expect interest rates as high as 30 per cent following the repeal of the interest rate cap law.
Parliament failed to raise the required quorum to defend the rate cap law which came into place in September 2016.
There has been a push by bankers, mainly through their lobby group-Kenya Bankers Association (KBA) to have controls on rate cap revised.
The law which has been in place for the last four years has controlled lending rates by commercial banks at four percentage points above the Central Bank of Kenya (CBK) Rate.