IMF advises rollback of Kenyan interest rate caps
Latest review finds caps have undermined the effectiveness of monetary policy and restricted credit access
The International Monetary Fund has said Kenyan authorities should look to “review” interest rate controls introduced last year due to their detrimental effect to the economy.
At the conclusion of their most recent visit to the country, IMF staff said the caps had contributed to “slow overall credit growth to the private sector” and “lower access to credit by [small and medium-sized enterprises] and individuals”.
In 2016, Kenyan president Uhuru Kenyatta introduced new laws on interest rate
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