A week after the President signed the Interest rates bill into law, the banking industry which at first seemed to have been in shock is slowly starting to comply. It seems that the banks did not expect that Uhuru would sign the bill into law given that his family owns a bank but in this case politics won the day. So far the banks that have reduced their interest rates include;

1. Cooperative Bank (Coop Bank)

2. Chase Bank

3. Barclays Bank

4. Kenya Commercial Bank (KCB)

Kcb Rates

5. CFC Stanbic Bank

Cfc Stanbic

All the banks that have announced compliance have stated that it is the new loans that will be priced at 14.5%. The old loans will remain at the old rates until such a time as the Central Bank gives direction on which rate to use for the old loans. However, CFC Stanbic has taken the lead in reducing the rates of old loans.

In as much as the banks have announced a reduction in the rates for loans, I still do not feel cause to celebrate. This is due to the fact that they may announce a lower interest rate but decline to approve loan applications hence denying applicants credit. At the risk of being considered a naysayer, my honest opinion is that the new law capping interest rates might not succeed in making credit accessible to all.