- Deputy President William Ruto on Tuesday said the law would remain and urged commercial banks to change their business models in line with the law.
The government has ruled out scrapping caps on loan interest despite a clamour by commercial banks.
In a TV interview Tuesday night, Deputy President William Ruto said the law would remain and urged commercial banks to change their business models in line with the law.
Banks have cut lending, with the growth in credit dropping from 16.8 per cent in January 2016 to 4.3 per cent in December, according to Central Bank of Kenya figures.
“Yes, there has been a slowdown and partly because there has been expectation there will be change of policy. But I’m sorry if that is what is being sought - it is not going to come anytime soon,” said the deputy president.
He defended the law, saying there is room for banks to be profitable.
“Our position is that the financial institutions we have in Kenya should cut down on their ‘fat’, they should cut on their expenses …they should change their business model. It is possible,” Mr Ruto said.