By CONSTANT MUNDAMore by this AuthorManufacturers want the law capping the cost of loans reviewed, arguing that it has stalled the flow of credit to small and medium enterprises. The Kenya Association of Manufacturers, an industry lobby, yesterday termed the law “counterproductive” to SMEs, which rely 89 per cent on domestic bank lending. The interest rates cap law, enacted last September through the Banking (Amendment) Act 2016, put a limit of four percentage points above the Central Bank Rate, presently at 10 per cent, on interest bank charges on loans. The interest rates law has attracted both praise and criticism from businesses and policymakers. Manufacturing projects approved by industrial financial institutions, however, increased to 365 in 2016 from 251 a year earlier.

Source: Daily Nation July 05, 2017 18:00 UTC