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No clarity on mobile and small-loan rates in new lending caps
KCB Group chief executive Joshua Oigara. He said the recent law capping interest rates at 14.5 per cent is mute on its application on mobile banking loans. PHOTO | FILE
The pricing of mobile phone and micro loans remains a grey regulatory area with some lenders insisting that both are not covered by the recent rate caps as others adopt a wait-and-see attitude.
Banks are looking at the fast-growing segment as a hedge against anticipated reduced revenues as rates shrink to 14.5 per cent while informal lenders hope to benefit from banks risk averseness for small borrowers.
