Treasury hints at reviewing interest rates capping law

Business Daily Kenya:  Treasury has hinted that it may review the interest rates capping law to enable retail sector access credit. This wa...

Business Daily Kenya: 

Interest rates. Photo/Courtesy

Treasury has hinted that it may review the interest rates capping law to enable retail sector access credit. This was said in response to claims by retail suppliers that the Banking Amendment Bill, signed into law last year, was making it difficult to access loans.

Speaking yesterday, during the Kenya Trade Week, Principal Secretary, Geoffrey Mwau, said when the President signed the Bill into law last year, he said the government will implement it despite difficulties that it would pose.

“We will implement the new law, noting the difficulties that it would present, which include credit becoming unavailable to some consumers and the possible emergence of unregulated informal and exploitative lending mechanisms,” President Uhuru said.

However, the President said the Government will closely monitor the difficulties, particularly as they relate to the most vulnerable segments of the population.

“We are also accelerating other reform measures necessary to reduce cost of credit and thereby create opportunities that will move our economy to greater prosperity,” he said.

Mwau said feedback they are getting from stakeholders – the banking sector, traders or the Small and Medium Enterprises (SMEs) can now allow government make the right adjustments.

“The feedback will form the next form of action. Now that we have the feedback from the banking sector, traders and the SMEs, it can be used to make the right kind of adjustments,” said Mwau. Since the law was enacted, many retail businesses have not been accessing credit because they are perceived to be risky by most banks.

The post Treasury hints at reviewing interest rates capping law appeared first on Mediamax Network Limited.

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