World Bank pushes for removal of rate cap law

Customers at a banking hall in Nairobi. FILE PHOTO | NMG

The World Bank wants the rate capping law, partly blamed for a slowdown in credit growth, reversed, but with more policy reforms to improve access to credit and financial inclusion.

Kenya introduced the law in September 2016 effectively fixing interest rates on loans at four percentage points above the benchmark central bank rate and imposing a minimum deposit rate of 70 per cent of the key rate.

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