Dear Esteemed Kenyans,
Now banks will not toss the coin to decide how much they are going to charge you for a loan that you take. Actually, if a bank charges you over 14.5%, it is a crime punishable by the law of the land – Banking (Amendment) Act 2016.
Cooperative Bank of Kenya Limited has set history by becoming the first bank in Kenya to cut the interest rates to the 14.5% capping set by the new law. It has become a trend setter. The rest of the banks will soon follow suit. They have no option. They will either cut their high interest rates of face criminal cases in the courts. If they do not do so, then they may be planning to ship out of business.
A number of analysts have said what they have to say to get paid. They have predicted what will happen. This is the time when analysts act as clairvoyants (those who have the ability to predict about the unforeseen future).
I enjoyed reading Mr. Kwame Owino’s column on the Daily Nation and how he analyzed the Banking law. He clearly predicted that the banks will become more friendly with customers. They will have to up their game in order to attract customers.