President Kenyatta regrets signing Bill To Cap rates, says that the slow-down in lending by Banks is unfortunate & unintentional

kazi yangu ni kuweka kidole mi sifanyi sheria

This law was political. I think govt should try to be innovative with the law so that they control interest rates without necessarily hurting lending and the economy.
Just like they exempted paying interests on transaction accounts, they should exempt caps on unsecured loans or widen the margin above cbr

Banks have said only removal of the interest rates cap could release credit flow to the private sector, responding to President Uhuru Kenyatta’s announcement in Wednesday’s State of the Nation address.

Most of the banks that have announced their 2016 full-year results have reported shrunken loan books in the period, with personal and SME loans taking the biggest hit due to their relatively higher risk profile.

“This is an issue that concerns us and is one that I will actively seek to resolve so that credit can start to flow again to the real drivers of our economy,” said the President.

Here we are...
Family fires it's staff https://citizentv.co.ke/...fs-to-cut-costs-143841/
and then Sidian lays off 108 workers http://www.businessdaily...9550-3428588-151f209z/,
then Ecobank collapses 9 branches http://www.businessdaily...6506-316lohz/index.html
First Community Bank let go of a quarter of its staff http://www.the-star.co.k...osed-number-of_c1451638
And now BoA closes 12 branches. Sad state of affairs http://www.businessdaily...2926-jp394sz/index.html

Everyone is hearing what they want to hear.

The president did not regret capping the bank rates, he said the lack of credit flow to SME's was an unfortunate consequence which he will work on. "work on" in my opinion does not equate to reversing the capping law (which by the way he can't even if he wanted to)

Let him use other means for example reduce the govt appetite for borrowing from the domestic market.