Successful removal of the rate cap is set to bring to an end three years of cheap credit for the government in the local market that saw Treasury ramp up domestic debt from Sh1.8 trillion in June 2016 to Sh2.7 trillion last June.
Following the enactment of the rate cap law in September 2016, interest on domestic credit dipped as banks flooded the government securities market while avoiding lending to the private sector.
