dc.contributor.author | Mokaya, Askah M | |
dc.date.accessioned | 2019-01-31T05:48:10Z | |
dc.date.available | 2019-01-31T05:48:10Z | |
dc.date.issued | 2018 | |
dc.identifier.uri | http://hdl.handle.net/11295/106083 | |
dc.description.abstract | This research project was set to study the impact of interest rate capping on credit accessibility-a
case study of SMEs in Nairobi County. Interest rate capping refers to the setting of a controlled
lending interest rate or margin at which commercial banks can lend out to borrowers. The
interest rate cap in the study was introduced in Kenya August 2016 by The Kenya Banking
Amendment Act, 2016 but came into effect in September 2016.The main aim was and has
always been to protect consumers from exploitation by lenders who charge exorbitant prices.
Interest rate capping affects the affordability of credit as well as accessibility to it. Credit
accessibility refers to how easy or difficult it is to get credit facilities when one needs them.
Interest rate has capping has attracted mixed reactions with regards to its impact in the economy.
Since the enactment of the law in September 2016, there has been considerable debate on its
effects with some arguing that it is beneficial to borrowers and the economy as a whole and other
saying the cap should be revisited, revised or scrapped off. This research therefore sought to look
into one of the major impacts and that is credit accessibility to find out if the cap has been
beneficial or detrimental. Credit accessibility was measure by comparing the amount requested
versus that received before and after capping in September 2016, the time taken for loan
processing before and after and the number of loans accepted and rejected before and after
interest rate capping. The study concentrated on SMEs in Nairobi County due to their
concentration thus a good representation and due to resource limitations, a sample size of 100
SMEs was preferred with a response rate of 89%.The study used the student t-test method to
analyse the primary data that was presented using graphs. Secondary data was also obtained from
the Central Bank of Kenya researches. | en_US |
dc.language.iso | en | en_US |
dc.publisher | University of Nairobi | en_US |
dc.rights | Attribution-NonCommercial-NoDerivs 3.0 United States | * |
dc.rights.uri | http://creativecommons.org/licenses/by-nc-nd/3.0/us/ | * |
dc.subject | Interest Rate Capping On Credit Accessibility | en_US |
dc.title | The Impact of Interest Rate Capping on Credit Accessibility –a Case of Small and Medium Enterprises in Nairobi County | en_US |
dc.type | Thesis | en_US |