Central Bank of Kenya (CBK) Governor Patrick Njoroge has asked banks across the country not to take advantage of millions of borrowers following the repeal of the interest rate cap.
Njoroge, spoke during the third Kenya Bankers Association (KBA) Catalyst Awards on Friday.
He said that he is aware of some banks planning to exploit borrowers after President Uhuru Kenyatta assented the Finance Bill 2019 into law.
He asked the banks to create an ideal environment for the customers to operate.
Njoroge noted that some banks have resolved to set the interest rates too high with the aim of making more profits from the same in the long run.
“We must satisfactory respond to the questions at the top of every Kenyan mind and ask ourselves what will be different this time. We must not fail Kenyans as it is the banking sector owes its existence,” he said.
The banks have already embarked on the pricing of new loans. The different banks are split on the interest rates charged to the borrowers.
Uhuru’s decision to assent to the bill has continued to elicit mixed reactions from different quarters. The Bill left the borrowers at the mercy of the lenders. The financial institutions can now set their rates without any restrictions.
CBK Governor Njoroge cautions banks against exploiting Kenyans