let people negotiate rates depending on their credit history /collateral and financial discipline

what people don't know is that banks offer lower interest on client's who have build a good credit history but you must start from that high point as a stranger

Before we look at the law or economic argument of this proposal, the Kenyan culture unfortunately disregards payment of debt. Majority of Kenyans have no intention of paying debt even when they know they took the loan and the loan assisted them.
For instance how many Kenyans have paid their HELB loans including the middle class? This has lead to unorthodox means by HELB including threatening to withholding marriage certificates so that people can pay.
Look at how nag their tenants before they can give back their deposits.
This culture puts a premium to any lendor because of the cost of recovering money.
Kenya is a also generally a cash economy and therefore majority do not have credit history. The few who have a history the record is not very appealing.
Kenya is still a poor third world country with only a few who are financially stable. The majority middle class are not investing in assets but fassets which do not add any economic value.

Maybe we are missing the key point, which should be the question, can banks remain profitable if interest rates are capped?? I think they will survive, though mobile money will be hit hard since currently it goes for 72% per annum and people actually borrow at such rates willingly!!!

For me, am glad the discussion now has started and that all relevant bodies are now involved.

It's plain to anyone that the interest rates charged by banks are determined by the market but the market has been manipulated by the same banks. Its good for them to feel kenyans need better rates that will ensure banks make normal profits and that i make a profit after i borrow from the bank to expand my business. Country grows and i borrow more, employ more and contribute tax more.

With the current market forces the rates should be hovering at 18-20% not 21-15%

To compare Kenya with others nations without stating the basis of comparison as Mr Obi want to do will not give the right picture/analysis.
Let's discuss Kenya as it is.
The writing is on the wall, the rates are high period. Question is, How can they be brought down?
Sir Swenani rightly gives part reasons n ways this can be tackled.
The ever wazuans have & are giving reasons why it's high, its from the reasons that we can find the solutions.
The govt of the day is heavy on borrowing to fund the fiscal budget, so domestic borrowing seems not be slowing esp going to an election year. The tbill rates have are starting an upward trajectory, how then do you cap the rates for a lender?.
A bank (read financial institution) is merely an a fulcrum for an economy growth between the savers and borrowers (read enterprenuers). so its a willing seller willing buyer.

Wazimu everywhere!
Even condominiums are very overcharged, Kes.180 bob for a pack of 3, if you spoil one during assembly then you reduce your chots to only 2.
We need several such bills.

he will be adviced by DJ who somehow owns a bank

The savannah spring wave will come to pass!