The Central Bank Of Kenya governor Patrick Njoroge has announced that the regulator is set to abolish the 14% interest on loans.
He said that the interests caps had a problematic effect on the economy and the general banking sector.
The regulator said they wanted to go back to the old regime of freely determining the cap of interested rates but under a regulated environment.
The central bank of Kenya has had a meeting with banks and they agreed to present business models that will encourage a disciplined credit market.
The governor believes this move to abolish the cap with an adequate business model will increase the disciplines in the credit sector.