Customers at the Kenya commercial bank (KCB).[Photo|paymentsafrika.com]
The commercial banks have said that the improved efficiency and transparency of the loans will now help the banks to weaken the case of one-year-old control rates.
According to the director of communications and public affairs in the Kenya Bankers Association (KBA) ,Nuru mugambi, the portal which displays the amount of credit charged by various banks has improved the transparency by allowing the borrower to compare loan charges at various Banks before requesting for a loan.
KBA has also praised the digital credit website that enables borrowers to directly access loans via their phones. The further noted that since the launch of the website on June 22 , there have been about 25,000 visitors accessing the website.
“All users are invited to give a feedback and so far 100 percent of the feedback we have received is positive. We, therefore, are confident that this website is best practice in promoting transparency in lending,” said Mugambi.
Last week, the Standard Chartered Bank chief executive, Lamin Manjang who is also the chairman of the KBA told Business daily in an interview that the success was brought about by the digital banking and investment in non-interest revenue.
It will be remembered that last year the members of parliament made amendments on the banking act that saw the interest rates reduced to 14 per cent from the previous 18.2 per cent just 4pc above the Central Bank.
The amendments were later assented into the rate cap law by President Uhuru Kenyatta on August 24, 2016. The law was later enforced on September 2016.