Kenya National Chamber of Commerce and Industry (KNNCI) Chairman Kiprono Kittony has urged commercial banks in the country to reduce interest rates to enable business fraternity repay loans on time.
Kittony said interest rate charged by banks is high and this has denied many businessmen access to affordable loans.
"The 24 per cent interest rate charged by banks is too high and this led to many businessmen defaulting repayments," he said.
He said with the 24 per cent interest rate businessmen are forced to make a profit of over 30 per cent to enable them repay the loan on time.
"It's difficult for a business that is starting to make a profit of over 30 per cent after deducting all expenses," he said.
The Chairman said the Kenyan economy 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 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 who are unable to repay their loans on time. The Chairman said they are going to come up with a Bill that will ensure businessmen are paid 60 days before they deliver services to save business community from such frustrations.
West Pokot Deputy Governor Titus Lotee asked the Senate to ensure that Counties get funds on time so that they can pay pending bills.
Lotee said it was the mandate of the Senate to ensure devolution is protected and runs smoothly and asked it to carry out its functions.
The two were speaking yesterday in Kapenguria during the official re launch of KNCCI West Pokot chapter.