Central Bank of Kenya Expresses Concern over Banking (Amendment) Bill 2015

Central Bank of Kenya has expressed concern on the proposals contained in the Banking (Amendment) Bill 2015.The bill intends to regulate interest rates that are applicable to banks loans and deposits.

At the same time Central bank of Kenya have appreciated the underlying sentiments about the need to lower the overall cost of credit.They noted that capping interest would lead to inefficiencies in the credit market,credit rationing,promotion of informal lending channels and undermining the effectiveness of monetary policy transmission.

They have therefore expressed their willingness to continue working with the National Assembly,the Government,Banking industry players and other stakeholders to find appropriate solution that sustain ably reduces the cost of credit.