“It happens everywhere else in the world, there is no reason it cannot happen in Kenya.”

It is possible to do business even with interest rates as low as 10 per cent, he said, adding that it is not justifiable for “anybody to tell us that at 14 per cent, which is currently the rate, there is any serious institution that cannot do business. We don’t believe so.”

Commercial banks have in recent days continued their onslaught on the rate-capping law, insisting controls have defeated the objective of providing affordable credit.

“We believe in free markets as a broad principle. We also believe that our financial institutions have not been responsible in lending,” said Mr Ruto.

Kenya Bankers Association (KBA) chairman and Standard Chartered Bank (#ticker:SCBK) regional CEO Lamin Manjang recently said caps had led to a vicious cycle of job losses and contraction in credit.

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