• Advertise with Us
Tuesday, October 3, 2023
  • Login
No Result
View All Result
NEWSLETTER
Kenyan Wallstreet
  • Home
  • News
    • Kenyan News
    • African News
    • Global News
  • Business
    • Agriculture
    • Banking
    • Aviation
    • Energy
    • Manufacturing
    • Markets
    • Technology
    • Startups
  • Money Matters
  • Podcast
  • Videos
  • Digital Assets
  • Calendar
  • Home
  • News
    • Kenyan News
    • African News
    • Global News
  • Business
    • Agriculture
    • Banking
    • Aviation
    • Energy
    • Manufacturing
    • Markets
    • Technology
    • Startups
  • Money Matters
  • Podcast
  • Videos
  • Digital Assets
  • Calendar
No Result
View All Result
Kenyan Wallstreet
No Result
View All Result

Treasury Once Again Recommends Repealing of Rate Caps

Carolyne TanuibyCarolyne Tanui
February 27, 2019
in Kenyan News
Reading Time: 2 mins read
National Treasury CS Rotich, Commissioner of Cooperatives, Mary Mungai, Director General of Budget, Fiscal and Economic Affairs at the National 
Treasury Dr. Geoffrey Mwau, and Capital Markets Authority CEO Paul Muthaura, during stakeholders engagement on Kenya Mortgage Refinance Company 
(KMRC) at a Nairobi Hotel.

National Treasury CS Rotich, Commissioner of Cooperatives, Mary Mungai, Director General of Budget, Fiscal and Economic Affairs at the National Treasury Dr. Geoffrey Mwau, and Capital Markets Authority CEO Paul Muthaura, during stakeholders engagement on Kenya Mortgage Refinance Company (KMRC) at a Nairobi Hotel.


Treasury has – again – recommended the repealing and scrapping of the bank rate cap as it is hurting Small and Micro Enteprises.

Dr Geoffrey Mwau, treasury’s economic secretary says that the government ought to be engaged and given more information and data on the debilitating effects of the rate cap law, which he says is negatively affecting the economy.

“I think the most important thing is to engage them ( government) and provide more information and data that it is actually hurting economy, especially SMEs, I have seen some Members of Parliament beginning to appreciate this,” he said.

KWS Square 320 KWS Square 320 KWS Square 320

The law came into force in 2016 and has received sharp criticism including the IMF, who have maintained that the move be rescinded in order for the country to access the Balance of Payment support.

Wolrd Bank also released a paper highlighting the weaknesses of the rate cap as it favoured governments because most banks could not risk investing in “risky market segments.”

“Having the nominal interest rate so close to the government risk-free rate meant that banks had little incentive to provide financing to risky market segments. Instead, commercial banks directed their investments to government treasury bills.” Mehnaz Safavian and Bilal Zia the authors of the paper stated.

In June 2018, Rotich had proposed repealing the interest rate cap. He was backed by bankers whose claim hurts credit growth and access to credit.

The Parliamentary Finance and Planning Committee went ahead and voted for the rate cap.


Previous Post

Kenya’s Sugar Industry slumped in January due to closure of some Factories

Next Post

Gov’t Contemplates Taking Full Ownership of KQ- PS Koimett

Related Posts

Moodys

EADB Maintains Stable Outlook in New Moody’s Rating

October 3, 2023
Maiyan Luxury Resort, Nanyuki, Kenya

Maiyan Luxury Resort Joins Sarova Hotels Portfolio

October 3, 2023

Kenya’s Economy to Grow by 5.6% in 2023 – AfDB

October 2, 2023

Slow Implementation of Legal Instruments Weighs on Comesa Programmes

October 2, 2023

Kenyan firms with Dollar-Denominated Loans Worst hit as Shilling Weakens

October 2, 2023

KRA Unveils Online Auction, Tax Amnesty

October 2, 2023

Central Bank of Kenya Joins the African Payments and Settlement Network (PAPSS)

October 2, 2023

Inflation Rate Ups Slightly to 6.8% in September, Amidst Fuel Price Hikes

October 2, 2023
Load More
Next Post
ps koimett

Gov't Contemplates Taking Full Ownership of KQ- PS Koimett

Follow Us

  • 167.4k Followers
  • 4.1k Subscribers
  • 1.2k Followers

WhatsApp

Subscribe

Telegram  

Subscribe

Podcasts

Featured

No Content Available

About Us

We are a leading integrated digital content platform providing in-depth business and financial news across Sub-Saharan Africa & the globe.

Contact Us

Kenyan Wall Street
Email: [email protected]
Website: www.kenyanwallstreet.com

Disclaimer

The information contained in this website is for general information purposes only.
Read more..

  • Advertise with Us

Copyright 2023. The Kenyan Wall Street LTD. All Rights Reserved.

No Result
View All Result
  • Home
  • News
    • Kenyan News
    • African News
    • Global News
  • Business
    • Agriculture
    • Aviation
    • Banking
    • Energy
    • Infrastructure
    • Insurance
    • Investment
    • Manufacturing
    • Markets
    • Public Policy
    • Real Estate
    • Startups
    • Technology
  • Podcast
  • Videos
  • Events

Copyright 2023. The Kenyan Wall Street LTD. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In