Uasin Gishu Governor Jackson Mandago has maintained his stance regarding push by banks to have interest rate cap lifted.
Banks are reported to be lobbying to have the lending rate cap that stands at 14 percent quashed.
Speaking as he hosted National Bank officials who were on a courtesy visit, Mandago said the plan will greatly harm Kenyans.
"I am strongly against this move to have (interest) increased to the level it was," said Mandago.
Central Bank of Kenya enforced a 14 percent interest rate by commercial banks after accepting to loan out to banks at 10 percent.
The capping was put in place in 2016. Mandago said most Kenyans opted to take loans following the capping.
"It is not rocket science, someone who has a salary may have decided to take a loan because interests had been brought down," he said.
In financial analysis, a Kenyan earning Sh15,000 and is servicing and or being deducted Sh10,000 saves Sh5000, only, if this cap is lifted, this person risks everything being deducted, or ends up being a defaulter.
According to Mandago, the borrower stands to be declared a defaulter should the interest rate cap be lifted.
Economic pundits argue that lifting of the rate cap could see commercial banks raising their limits to 23 percent.