High Court declares interest rate cap law unconstitutionalNAIROBI, KENYA: High Court has ruled that the law setting limits on interest rates charged on loans by banks is unconstitutional. The three-Judge bench however suspended the implementation giving the regulator one-year period to put in place appropriate mechanisms. “For that reason, the court cannot fault the National Assembly in legislating a provision on interest rate ceiling. Politicians concerned about high rates charged by banks put the cap on interest rates in place in 2016. However, banks say the move has caused them to cut back on loans to high-risk groups.

Source: Standard Digital March 14, 2019 15:45 UTC