High-risk borrowers like individuals and small businesses face an increase in loan rates of up to three percentage points following the removal of the legal cap on commercial lending charges, according to KCB #ticker:KCB chief executive Joshua Oigara.
Mr Oigara, the head of Kenya’s largest bank by asset size— Wednesday said removal of the cap will ease lending to the small businesses, but forecast that their interest rate will increase to between 15 percent and 16 percent, up from the current 13 percent.
