Interest rate caps: Kenya's central bank data unveils the reality
Like with all new regulations, the interest rate caps caused uncertainty in the market as borrowers and lenders took time to assess its implications. TEA GRAPHIC | FILE
The interest rate caps effected in Kenya in September last year have not turned out to be the disaster that banks — with the tacit approval of the regulator and the World Bank — had been shouting from the rooftops they would be.
Their word is now being discredited by data released by the Central Bank last week, when it explained the Monetary Policy Committee’s decision to retain the distress lending rate at 10 per cent.
