Uasin Gishu governor Jackson Mandago has added his voice to the ongoing debate over calls to review the interest rate capping law.
Mandago says interest rate which was set at 14 percent should remain as it is or even lower.
Speaking in Eldoret on Thursday, the vocal Jubilee governor noted that even with the interest rate capping at 14 percent, banks were still making huge profits hence no need to be reviewed.
He, however, said if the rates are reviewed, the move should not affect loans that are currently active.
“If by any chance the capping of interest rates is removed, interest rates for the current loans should not change but instead those with loans should pay as per the rates that were there when they applied,” said Mandago.
“But if it were me, those rates should remain as they are now or even be lowered since banks are still making billions of profits even with the capping in place,” he added.
There has been growing calls to scrap the capping of banks interest rates with the National Treasury Cabinet Secretary Henry Rotich saying the government might consider reviewing the law which many says has contributed to the slow down of credit to private sector.