Once the law comes into force, interest rates will drop to a maximum of 14.5 per cent given the CBR’s current standing at 10.5 per cent.
By MICHAEL WACHIRA
Kenya has 42 commercial banks, but the six largest ones popularly known as Tier One control 52.4 per cent of the entire industry. This leads to only a few banks controlling the market, just like any other economy across the globe. Banks act as middlemen through whom we deposit monies and get advances and loans. They make money from the differences between the rate which they pay the depositors and the one they charge the borrower. This difference is called the interest rate spread.Read More