Regulation of Interest Rates and Terms of Credit of Specified Banks and Specified Financial Institutions

Gazette Notice 1617 of 1990

This is the latest version of this Gazette Notice.
Citation
Gazette Notice 1617 of 1990
Primary work
Central Bank of Kenya Act
Date
Language
English
Type
Gazette Notice
Related documents
LAWS OF KENYA

CENTRAL BANK OF KENYA ACT

REGULATION OF INTEREST RATES AND TERMS OF CREDIT OF SPECIFIED BANKS AND SPECIFIED FINANCIAL INSTITUTIONS

GAZETTE NOTICE 1617 OF 1990

  • Published in Kenya Gazette Vol. XCII—No. 14 on 6 April 1990
  • Commenced on 1 April 1990
  1. [Revised by 24th Annual Supplement (Legal Notice 221 of 2023) on 31 December 2022]
(a)The minimum rate of interest payable by specified banks and specified financial institutions on deposits or savings shall be 13.5 per cent per annum.
(b)The maximum rate of interest which specified banks may charge for loans or advances granted for a term not exceeding three (3) years shall be 16.5 per cent per annum calculated on a reducing balance method, with monthly rests.
(c)The maximum rate of interest which specified banks may charge for loans or advances granted for a term exceeding three(3) years shall be 19 per cent per annum calculated on a reducing balance method, with monthly rests:Provided that interest rates on term loans granted for a period exceeding three (3) years outstanding in the books of specified banks on 31st March, 1990, shall continue at existing rates until 31st March, 1991, when interest rates may be re-negotiated between the parties subject to the maximum interest rate of 19 per cent per annum.
(d)maximum rate of interest which specified financial institutions may charge for loans, advances or instalment facilities shall be 19 per cent per annum calculated on a reducing balance method, with monthly rests.This notice shall be deemed to have come into effect on 1st April, 1990, and supersedes Gazette Notice No. 4939 of 1989 and Gazette No. 1458 of 1990.
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History of this document

31 December 2022 this version
06 April 1990
Published in Kenya Gazette 14
Read this version
01 April 1990
Commenced