Kenyan central bank, banking group, see problems with interest rate caps

By George Obulutsa NAIROBI (Reuters) - Changes to Kenya's banking law that will cap commercial lending rates risks driving borrowers to informal financial services, increasing credit inefficiency and undermining transmission of monetary policy, the central bank and an industry body said. Kenya's parliament passed the amendments to the banking law on Wednesday at a third and final reading. The changes setting maximum lending rates at 400 basis points above the central bank's benchmark rate, which