March 14, 2019 / 2:41 PM / 2 months ago

Kenya court axes banking rates cap, suspends implementation for a year

NAIROBI, March 14 (Reuters) - A Kenyan court ruled on Thursday that a government-imposed cap on bank interest rates is “unconstitutional”, the Central Bank said, but judges suspended the ruling for 12 months to allow regulators time to respond.

“Implementation is suspended for 12 months,” the central bank said in a tweet.

The cap on interest rates was put in place in 2016 by politicians concerned about high rates charged by banks. However, banks say the move has caused them to cut back on loans to high-risk groups. (Reporting George Obulutsa; Writing by Katharine Houreld Editing by Gareth Jones)

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