Larayna wrote:The banks have deliberately refused to lend, sabotaging the economy so that they justify the rate cap as the cause. Even more infuriating is the banks haven't put an alternative policy on how they will self regulate when it comes to interest rates. Greed for super profits is all they want and care about..
Why have they not come up with policies where Low risk
Borrowers with good credit rating get loans at rates like 10% or less. While risky borrowers pay higher rates?
In UK for instance, you can borrow for as little as 2% and for as high as 3600%
It all depends on ones credit worthiness
In Kenya however, every Dick Tom and Harry are gauged with the same yard stick. Because of the utter ineptness and laziness the bankers. Meaning good creditors are made to offset the banks losses from defaulters and bad creditors
Those here on wazua attacking the interest rate cap are nothing but shareholders desperate for a bumper dividends
You are right on the need for interest rates based on the borrower's credit rating. However there is a limit to how low the rates can go. Perhaps this might help you understand some of the reasons the UK and Kenya cannot have the same rates...
https://tradingeconomics...d-kingdom/inflation-cpi
https://tradingeconomics.com/kenya/inflation-cpi
This is just one factor. Default trends, cost of corruption, justice system, political risk, the GOK's penchant for springing surprises that sometimes destroy businesses ( EABL's Keg consumption comes to mind, petrol availability on some occasions) etc all factor into the rates we pay. As a business, you ignore these factors at your own peril.