The capping of interest rates imposed to commercial banks has been declared unconstitutional.
3-Judge High Court Bench has ruled that capping of interest rates under Banking Act Sec 32B is unconstitutional.
The Central Bank of Kenya (CBK) had been pushing for the change or repeal of the law on capping of interest rates.
Members of Parliament rejected the CBK’s narrative saying changing the law will give commercial banks room to exploit Kenyans with high interest rates.
CBK now says that the implementation as per the court’s ruling “is suspended for 12 months to allow regulator to put in place appropriate mechanisms.”
More to follow.