Microfinance Sees Huge Opportunity Following Banks’ Interest Rates Cap in Kenya
Micro Finance Banks see a huge opportunity for growth as bankers implement the new banking law capping Interest Rates at 4 per cent above the Central Banks Rate.
According to Maisha Micro Finance Bank Chief Executive Ireneus Gichana the possibility of credit rationing expected to hit the banking sector will see borrowers flock microfinance banks.
The new law has seen interest rates for banks at 14 per cent but microfinance banks average interest rates charges are at 20 per cent.
Gichana says the move will not necessarily cripple the economy because borrowers have other options that include micro finance banks.