Central Bank of Kenya Governor Patrick Njoroge during an MPC press
conference in Nairobi on March 28, 2019. PHOTO | SALATON NJAU | NATION
MEDIA GROUP
The Central Bank is in talks with local banks to ensure that
they don't introduce punitive measures in bid to recover money lost
because of interest rates capping.
Central
Bank of Kenya (CBK) Governor Patrick Njoroge said that they will draft a
monetary policy to make the banking sector more customer friendly.
“We
are hopeful that we will soon a have solution that is working for
Kenyans and provide a conducive banking environment. The caps have in a
sense destroyed part of our economy,” said Mr Njoroge.
The High Court on March 14, 2019 declared the Banking (Amendment) Act 2016, which capped interest rates unconstitutional.
According
to the CBK governor, the effects of the capping law have not only
affected the monetary policy’s effectiveness but also credit flow to
micro, small and medium enterprises (MSMEs).
“Domestically,
we need to find a way to expand credit access to MSMEs and provide them
with other necessities to grow,” said Mr Njoroge.
'STRONG GROWTH'
Speaking
when he paid a courtesy call to Uasin Gishu Governor Jackson Mandago on
Monday, Mr Njoroge said that the bank will continue supporting the
activities of the devolved units through timely disbursement of funds.
“In
a nutshell the economy is reasonably well. We have seen strong rebound
in the last two years ago. In 2018 the economy grew by 6.1 percent. We
expect it to grow by 6.3 percent this year,” said Mr Njoroge.
While
tourism, agriculture and manufacturing have rebounded, Mr Njoroge
raised concerns over the upsurge of fake currencies circulating in the
country.
Governor Mandago commended Central Bank for putting in place a monetary policy which has stabilized the Kenyan shilling.
“We
are happy to note that Central Bank is working to make sure that the
sector works in a professional manner,” said Mr Mandago.
No comments :
Post a Comment