The Bankers Association is now calling upon President Uhuru Kenyatta not to sign into law the Banking Amendment Bill 2015 passed by the National Assembly saying that it will be a big blow to the common mwananchi as well as small and medium sized enterprise. The bill which puts a cap to the lending rates at 4 percent of the central banks rate makes it possible for the common mwananchi to access a bank loans at a low of 4.5 percent with the current rate at 10.5%.
According to the bankers the initial intention of amending the banking act was to ensure that Kenyans can asses loans cheaply,however the lending cap set at 4 percent of the central bank rate which is at 10.5 percent will cause more harm than good
Members of the National Assembly say the Kenyan banks have been making Kenyans dig deep into their pocket when repaying loan, with some lenders charging as high as 25 percent interest rates
The banks also want the president to consider their plea as well as avoid a distortion in the markets. Kenyans have over the years complained of lack of access to bank loans due to high interest rates