Kenya Bankers Association's statement on new law

The Kenya Bankers Association (KBA) is committed to bringing down loan interest rates, promoting a savings culture and enhancing consumer protection, so we welcome the spirit of today’s decision by His Excellency President Uhuru Kenyatta.

We however do not feel that an arbitrary rate cap is in the best interests of the majority of people and businesses that this law seeks to support.

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.

However, we as the banking industry remain committed to addressing the fundamental issues that drive up the cost of credit.

Meanwhile, the banks will comply with the law as they continue to provide financial services to their customers.