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Episode 72: The Impact of Interest Rate Capping

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Manage episode 218803680 series 1247257
Content provided by Brenda Wambui. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Brenda Wambui or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://player.fm/legal.

In September 2016, Kenya passed the Banking Amendment Act, creating interest rate controls where there were none before. It sets the maximum lending rate at no more than 4% above the Central Bank base rate; and the minimum interest rate granted on a deposit held in interest earning accounts with commercial banks to at least 70% of the same rate.

There has been an ongoing debate in the two years since on whether we should remove these controls because of their perverse effect on our economy. Today, we're joined by Elizabeth Wangechi, the Head of Research at Genghis Capital, to discuss the impact of these controls. Press play!

Resources

The Banking (Amendment) Act 2016

The Impact of Interest Rate Capping on the Kenyan Economy - Full

The Impact of Interest Rate Capping on the Kenyan Economy - Summary

CBK regrets interest rates cap due to negative effects on economy

MPs uphold rate cap law, scrap interest on savings

CBK spells out loan rules ahead of interest rate cap review

Image Credit: FT.com

  continue reading

115 episodes

Artwork
iconShare
 
Manage episode 218803680 series 1247257
Content provided by Brenda Wambui. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Brenda Wambui or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://player.fm/legal.

In September 2016, Kenya passed the Banking Amendment Act, creating interest rate controls where there were none before. It sets the maximum lending rate at no more than 4% above the Central Bank base rate; and the minimum interest rate granted on a deposit held in interest earning accounts with commercial banks to at least 70% of the same rate.

There has been an ongoing debate in the two years since on whether we should remove these controls because of their perverse effect on our economy. Today, we're joined by Elizabeth Wangechi, the Head of Research at Genghis Capital, to discuss the impact of these controls. Press play!

Resources

The Banking (Amendment) Act 2016

The Impact of Interest Rate Capping on the Kenyan Economy - Full

The Impact of Interest Rate Capping on the Kenyan Economy - Summary

CBK regrets interest rates cap due to negative effects on economy

MPs uphold rate cap law, scrap interest on savings

CBK spells out loan rules ahead of interest rate cap review

Image Credit: FT.com

  continue reading

115 episodes

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