FKE calls for talks on interest rates

The Federation of Kenyan Employers (FKE) has weighed in on the debate to cap interest rates, urging the president to give the matter more time for deliberation.

While acknowledging that the cost of loans is way beyond the reach of many, FKE is of the opinion that the matter should be further deliberated upon and better ways arrived at by all relevant stakeholders.

“A negotiated process of bringing down the cost of credit will will yield better results for all parties,” FKE Executive Director Jacqueline Mugo said.

The Kenya Private Sector Alliance (KEPSA) is set to convene a consultative meeting on Monday next week.

The meeting will bring together government officials, commercial banks heads, development agencies and business leaders, with an aim of answering which way out from the high interest rate regime.

“There’s likely to be a meeting on Monday which has been called by the various stakeholders to try and ventilate this matter so that we can come to an amicable settlement that’s not detrimental to either side,” FKE National President Mark Obuya said.

Last week President Uhuru Kenyatta received the Banking Amendment Bill from National Assembly speaker Justine Muturi.

President Kenyatta has until the 29th of August to make a decision on whether to sign the bill into law, capping interest rates at 14.5 percent