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Why Traders Are Suffering Banks Exploiting Them, Says MP Nyachae
- Details
- Published on Wednesday, 18 July 2007 00:21
"They charge exorbitant levies and interest rates on loans advanced to the owners of the businesses hence bringing them down," said MP Simeon Nyachae. He said that despite protests against high interest rates charged by financial institutions, they had continued "with their exploitative tendencies".
Mr Nyachae was speaking at Kisii Town on Friday during the opening of Credit Bank branch in Kisii Town. The branch would operate throughout the week, including Sundays.
Cashiers at the branch were kept busy yesterday as traders rushed in to make use of the facility.
All banks within the town operate from Monday to Saturday, forcing businesspeople to keep their weekend collections in their houses.
Mr Nyachae who was accompanied by the bank's managing director Agarwal Narrendra, said a number of promising business entrepreneurs and enterprises in the country have collapsed because of poor loan repayment rates and shaky financial bases.
The Nyaribari Chache Ford People MP praised the bank for charging fair interest rates, saying that the move had enabled it to grow.
He said commercial banks were insensitive to their customers' financial weaknesses.
MPs Jimmy Angwenyi, Henry Obwocha, Zebedeo Opore and Joel Onyancha told the Kisii council to improve provision of services to attract investors.
Mr Obwocha said that insecurity was a major hindrance to investments in major towns in the country.
