StanChart says it is keeping off from spiking interest rates following repeal of capNovember 11, 2019
NAIROBI, Kenya, Nov 11 – Clients of Standard Chartered Bank will not see a spike in interest rates or any form of predatory lending practices from the bank following the repeal of the Interest rate cap.
In a statement, the bank says it stays committed towards supporting lending to the private sector particularly the SME sector, which had been the most affected.
Additionally, the bank says it shall not reprice existing loan facilities and they will continue under the existing agreements.
“We are finalizing plans to roll out a fully-fledged Risk – based pricing model for new facilities which we will announce in due course,” the bank’s CEO Kariuki Ngari said.
The bank is the latest bank to promise Kenyans that it shall not exploit them.
Sidian Bank said Sunday that was not going to revise its interest rates after an earlier memo saying it had reviewed interest rates for various products based on the associated credit risk starting circulating.
Last week, President Uhuru Kenyatta signed into law the Finance Bill 2019 which among other provision, repealed section 33b of the Banking Act that provides for the capping of bank interest rates.
The repeal of interest rates cap is expected to enhance access to credit by the private sector especially the Micro, Small and Medium Enterprises (MSME’s) as well as cut out exploitative shylocks and other unregulated lenders.
The new law also introduces tax on income raised from the digital marketplace as a measure of ensuring equity in taxation.