“I think it is clear to us that this (rate cap) has been problematic in many ways. What I cannot tell you is the path going forward (and) how this will happen,” Dr Njoroge said. “All I can tell you is that it is in our interest as a country, it is in our interest as a central bank to work to reverse these measures and let ourselves go back to a regime with freely determined interest rates but in a disciplined environment. The central bank of course is keen on maintaining that disciplined environment. I can tell you the direction but cannot tell you when.”
Barclays Bank of Kenya chief executive Jeremy Awori said the review of the rate cap, if it happens, will likely be next year, citing prolonged electioneering period following the nullification of re-election of President Uhuru Kenyatta.
“This is a process because it has to go back to parliament if there was going to be amendments. What I can say is that banking industry is mindful of not going back to days when we had runway interest rates,” Mr Awori said. “I don’t think this is healthy to anybody. We really need to try and keep interest rates as affordable as possible.”