Tha banks will simply stop lending to anyone they deem "less than stellar" ... The beneficiary will be GoK which can mop up (cheaper) cash using T-Bills. The fees eg commitment fees will increase. The banks will start charging fees for everything under the sun.

Banks like KCB and Equity will charge 'facilitation' fees similar to M-Shwari. So instead of interest, they will charge a "fee" at 2% [or more] per month.

I wouldn't underestimate the politicos resolve to see this bill through in light of their performance over the last three years. Cheap populist policy to score easy points in an election.

Banks as per usual will 'lobby' hard against it but the deck might be stacked against them this time round.

As if the macro factors were not bad enough this pops up. Grim horizon.

Small banks without cheap deposits will start to disappear or work with a 2% interest margin. They wont survive unless they are able to attract many customers or capitalize the banks massively

With just a 2% margin in Kenya's tough economic environment & high default rates even the big banks will find it hard lending money at a profit. They will stick to well-heeled corporates and Treasuries.