Former Kiambu Governor William Kabogo has adviced Kenyan banks on the steps to undertake to avoid closing shop.
In a tweet on Monday, Kabogo noted that Kenyans are struggling to keep up with the high interest rates banks charge for their loans.
“Same applies to our country. Renegotiate loans,” posted Kabogo.
The Kiambu politician was making reference to a previous tweet he had posted to echo his sentiments.
“My free advice to banks in Kenya. Re-negotiate terms of payment for loans to reduce burden on borrowers otherwise you’ll find yourselves closing shop due to bad debts. No one is buying from the Auctioneers. Kenyans suffering in silence,” said Kabogo.
By charging borrowers highly, Kabogo argued that some of the banks might be forced to close due to accumulated loans which cannot be paid by borrowers.
Speaking during an interview on the Wicked Edition two months ago, Kabogo criticised banks for selling people's property at a loss to auctioneers over failure to repay their loans.
"I said Kenyans are suffering because they borrow money from banks. You borrow Sh100, 000, you have already repaid them Sh180,000 but still, they say you owe them another Sh200,000," said Kabogo.
"They then take your property and dump it to auctioneers. Your property overstays there, some of it is stolen, they sell the rest at a loss, for instance, Sh20,000, and then come for other things from your home," he added.
He further argued that borrowers should not be asked to pay more than what they borrowed.
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