KCB, Safaricom Lower Mobile Loans Interests After COFEK Pressure
Tuesday, September 20, 2016
KCB and its mobile money partner Safaricom have finally bowed to pressure to lower mobile money interest rates.
This comes after the Consumers Federation of Kenya (CoFEK) expressed concern over the continued confusion around the law capping bank interest rates.
The consumer rights body had threatened court action if the banks-KCB and the Kenyatta owned CBA did not comply with the Banking Act, 2016 and lower their rates.
“The law is clear that it applies to all loans. Whether offered directly or indirectly, any loan from a licensee of the Central Bank of Kenya via an agent and or mobile phone or any other technology is not exempt from the 4% over and above the Central Bank Rate (CBR),” CoFEK said.