Kenyans to bear the brunt of low interest rates as bank suspends unsecured loans
25 August 2016, 14:07
Nairobi - Kenyans are to bear the brunt of low interest rates as commercial banks have started dropping unsecured loans.
The Star has confirmed that one bank has already stopped processing unsecured loans, including those pegged on payslips or salary loans.
This comes hot on the heels of the signing of the Bill capping interest rates.
Read Also: President Kenyatta assents law capping commercial bank lending rates
While assenting to the Bill, President Uhuru Kenyatta admitted that it carried risks such as making credit unavailable to some consumers and the possible emergence of unregulated informal and exploitative lending mechanisms.
"Upon weighing carefully all these considerations, on balance, I have assented to the Bill as presented to me. We will implement the new law, noting the difficulties that it would present ...We will closely monitor these difficulties, particularly as they relate to the most vulnerable segments of our population.
"Whilst doing so, my government will also accelerate other reform measures necessary to reduce the cost of credit and thereby create the opportunities that will move our economy to greater prosperity," he pledged.