Africa Update: This East African country’s central bank says lending cap is “strangling” the nation’s economy, here’s why…

Nigeria Update: Mobile drives payment as instant pay users hit 11m
September 28, 2018
Africa Arrives:The Savvy Entrepreneur’s Guide to the World’s Hottest Market Paperback
September 28, 2018

Africa Update: This East African country’s central bank says lending cap is “strangling” the nation’s economy, here’s why…

NAIROBI (Reuters) – A cap on commercial lending rates in Kenya is “strangling” the economy by locking out many borrowers who are deemed too risky to lend to by banks, the head of the central bank, Patrick Njoroge, said on Wednesday.

The cap, at four percentage points above the central bank’s policy rate, was imposed in Sept. 2016. An attempt by the Finance Minister Henry Rotich to repeal the cap in June was blocked by lawmakers last month.

Comments are closed.