Only one out of three applications are likely to be approved as banks shift focus from personal and small business loans — considered risky after introduction of the rate cap law — to short-term government securities.
A survey by the Kenya Bankers Association (KBA) tracking the market adjustments since August 2016, when commercial lending rates were fixed at four percentage points above the 10 per cent Central Bank Rate, showed while application for loans have increased banks are not disbursing as much.
