Kenya Rate-Cap Champion Wants to Limit Bank Lending to State
- Lawmaker proposes banks hold 5 billion shillings of capital
- Legislator successfully introduced interest-rate caps in 2016
Photographer: Trevor Snapp/Bloomberg
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A Kenyan lawmaker who successfully introduced a law capping interest rates is now proposing to limit how much the government can borrow from local commercial banks and wants a five-fold increase in the core capital the lenders hold.
Lawmakers in East Africa’s biggest economy plan to introduce the changes in the Finance Bill 2018 to ensure that the public sector doesn’t crowd out businesses and personal lending, Member of Parliament Jude Njomo said by phone in the capital, Nairobi.