The share price for leading banks has increased by at least eight percent at the Nairobi Securities Exchange (NSE) minutes after tMPs agreed to President Uhuru Kenyatta’s proposal to abolish the interest rate caps.
The share price for Co-operative Bank shot by 10 percent from Ksh12.50 yesterday to Ksh13.75, while the the NCBA Bank shares shot by 8.66 percent to Ksh37 per share.
I&M Bank’s share price shot by 10 percent to Ksh49.50 while that of Kenya Commercial Bank (KCB) rose by 7.89 to Ksh48.55 from yesterday’s closing price of Ksh45.
Today, Members of Parliament gave a nod to President Kenyatta’s recommendation to have the interest capping law repealed.
The move by the National Assembly Finance and National Planning Committee chaired by Kipkelion East MP Joseph Limo comes just days after the President expressed his reservations with the interest rate caps introduced in September 2016.
The repeal will see the return of expensive loans, but rather a competitive banking environment on the flip side.