Kenya should maintain cap on loan interest rates

Kenya’s banks have been accustomed to abnormal profits for a very long time.

Editor,

RE: “Interest rate cap on loans will soon be reversed” (The New Times, September 15).

Kenya’s banks have been accustomed to abnormal profits for a very long time.

Now that interest rates have been capped and their interest income reduced greatly, they are looking to go back to their old ways of exorbitant cost of financing to shore up their fortunes.

Kenya must refuse any attempt by banks to go back to reckless and highly indiscipline way of lending to Kenyans. It had made the cost of doing business quite expensive, and a number of businesses had to wind down because of inability to repay some of their expensive loans.

Tom

 

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