(+) KCB BOSS SAYS LENDERS WILL EMERGE STRONGER

The Star (Kenya) - - News -

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).

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