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dc.contributor.authorMokaya, Askah M
dc.date.accessioned2019-01-31T05:48:10Z
dc.date.available2019-01-31T05:48:10Z
dc.date.issued2018
dc.identifier.urihttp://hdl.handle.net/11295/106083
dc.description.abstractThis 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.isoenen_US
dc.publisherUniversity of Nairobien_US
dc.rightsAttribution-NonCommercial-NoDerivs 3.0 United States*
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/us/*
dc.subjectInterest Rate Capping On Credit Accessibilityen_US
dc.titleThe Impact of Interest Rate Capping on Credit Accessibility –a Case of Small and Medium Enterprises in Nairobi Countyen_US
dc.typeThesisen_US


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Except where otherwise noted, this item's license is described as Attribution-NonCommercial-NoDerivs 3.0 United States