(+) KCB BOSS SAYS LENDERS WILL EMERGE STRONGER
KCB Group chief executive Joshua Oigara has said interest caps are a disruption to banks’ growth strategies, but was emphatic lenders will come out stronger. “The industry will have to be more innovative on how we look at our costs, new products of improving the market (and) growing our share. Affordable credit credit is good for the economy,” Oigara said on September 1.
Section 33B 1 (a) of the Banking (Amendment) Act requires banks not to charge more than four percentage points above the rate set and published by the Central Bank, while (b) puts an interest floor of 70 per cent of the same base rate on savings accounts. Lenders contravening this shall be fined not less than Sh1 million or on default, the chief executive jailed for not less than a year under Section 33B (3).