The President of the African Development Bank (AfDB) Mr Akinwumi Adesina has urged banks to improve risk assessment rather than shun Small and Medium Enterprises after President Uhuru Kenyatta signed into law a bill capping interest rates. He said that what is needed is to understand the risk profiles of different types of private sector in order to understand the risk return. The AfDB President also said there was need to have risk sharing instruments that allows you to reduce the risk of lending by the banks. Mr Adesina said that banks across Africa have been unfairly pricing loans which has slowed down development. “I think it is not possible to grow the private sector when you have rates that are going to 28 per cent, 30 per cent, it is just not possible,” he added.

Source: Daily Nation August 26, 2016 08:48 UTC