The Central Bank together with the CEOs of all Commercial Banks operating in Kenya held an unusual press briefing in regards to the Bill by Members Of Parliament which is aimed at regulating bank’s interest rates .
CBK Governor together with the CEOs of Banks operating in Kenya expected to brief the media in a few minutes pic.twitter.com/VGnQbGDF3Z
— Kenyanwallstreet (@kenyanwalstreet) August 10, 2016
CBK Governor; “The Issue of Interest rates is a very difficult issue, how ever they need to come down”
StanChart Kenya CEO Lamin Majang Who is also the Chairman of Kenya Bankers Association says “We understand the need to lower rates, it leads to growth. This is not a case of Banks to be in logger heads with Members of parliament”
He continues “The banking sector is one of the largest employers, its important that it continues to grow. The proposal to cap interest rates may lead to adverse consequences. Countries that tried it before experienced saw the consequences”
He says they are committed without having to resort to legislation as a measure to lower rates.
Kenya Bankers Association CEO Habil Olaka says Banks have proposed a Memorandum aimed at ensuring cost of credit comes down in a structured manner.
Full story has been updated here; Banks pledge to cut lending rates ahead of President Kenyatta’s Decision on Rate Cap
