Banks say awaiting guidelines on existing borrowers after rate cap

The Kenya Bankers Association has said it is awaiting rules from the State to establish whether those already with loans will be affected by the new interest cap law.

It remains to be seen how the banks will navigate the controversial issue of migrating current loans to the new interest rates regime.

Most borrowers are currently on a flexible interest rates regime — meaning their interest rates vary according to the prevailing market conditions — and therefore the expectation that they will be moved to the new regime of a maximum 14.5 per cent once it comes into force.

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