Commercial banks are now free to form new lending cartels as President Uhuru Kenyatta has signed a new law allowing them freedom to determine interest rates.
This means the 4 point mark against bill rates set in 2016 has been replaced by the bank rate…signaling the beginning of new exploitation to customers by financial institutions.
The President had earlier criticized the commercial banks lending policy saying small enterprises were not able to access loans to develop their businesses due the policy. The finance bill capping interest rates was however shut down by parliament.
Commercial lenders have however assured customers that they would price loans reasonably and customer should not accept sudden increases in interest rates.