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KAM wants the law capping interest on loans reviewed
From left: ODM executive director Oduor Ong’wen, KAM CEO Phyllis Wakiaga and chair Flora Mutahi, and Third Way Alliance presidential candidate Ekuru Aukot during the launch of KAM’s Ten Points priority agenda yesterday. PHOTO | DIANA NGILA | NMG
Manufacturers want the law capping the cost of loans reviewed, arguing that it has stalled the flow of credit to small and medium enterprises. The Kenya Association of Manufacturers, an industry lobby, yesterday termed the law “counterproductive” to SMEs, which rely 89 per cent on domestic bank lending.
The interest rates cap law, enacted last September through the Banking (Amendment) Act 2016, put a limit of four percentage points above the Central Bank Rate, presently at 10 per cent, on interest bank charges on loans.
