The chairman, Kenya National Chamber of Commerce and Industry (KNCCI) Mr. Kiprono Kittony has urged commercial banks in the country to reduce interest rates to enable business fraternity repay the loans on time.
Kittony said interest rate charged by banks is high and this has denied many businessmen from accessing loans.
“24% interest rate charged by banks is too high and this leads to many businessmen defaulting repayments,” he said.
He said with the 24% interest rate businessmen are forced to make a profit of over 30% to enable them repay the loan on time.
“It’s difficult for a business that is starting to make a profit of over 30% after deducting all expenses,” he said.
The chairman said the economy of this nation relies on business and asked the government to intervene to ensure the rates are reduced for the nation to realize vision 2030.
“We will not be able to achieve our goals as a nation if many businesses are being closed since they are unable to repay their loans,” he said.
Kittony also asked the government to release 15% of funds meant for counties on time to enable counties pay suppliers of goods and services on time.
He said delay to release the funds has also affected businessmen to repay their loans on time.
“The funds should be released on time to prevent businessmen from frustrations. There is no bank that hears excuses,” he said.
The chairman said they are going to come up with a law that will ensure businessmen are paid 60 days before they delivery services to safe business community from such frustrations.
However, West Pokot deputy governor Titus Lotee asked senate to ensure that counties get funds on time to avoid such hick ups.
Lotee said it was the mandate of senate to ensure devolution is protected and runs smoothly and asked it to carry out its functions.
“Senate should come up with laws that ensure counties get funds on time to ensure services roll down smoothly,” he said.
The two were speaking yesterday in Kapenguria during the official re launch of KNCCI West Pokot chapter.