Spire Bank is an ideal partner and a proud supporter of SMEs

In January this year the International Monetary Fund (IMF) asked the Treasury to remove bank interest rate caps and let the market determine the interest rates in the true sense of a capitalist’s economy.

Since then economists, financial institutions and even ordinary Kenyans have joined calls in asking the government to review the capping of the interest bill. This is because incidentally the people the government sought to assist like Small Medium Enterprises (SMEs) have ended suffering the most.

Many commercial banks shied away from lending to high risk customers such as small business owners.

Millicent Mukami, Relationship manager at Spire bank, while speaking at the sidelines of the two day event said from her interactions with a number of SMEs, the cash crunch is real.

" she said.

IMF warned Kenya’s economic growth rate may have to be cut by up to two percent in the next two years should the banking interest rate controls passed by parliament last year hold.

It is already evident what IMF warned is being felt already, last week Equity bank reported a 4.1 per cent net profit decline in the year ended December and attributed the drop to capping of interests.

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Several banks have in the past one year also laid off hundreds of employees in a bid to remain afloat, this notwithstanding Spire bank is committed to keep on supporting their loyal customers to #AspireForMore despite the harsh economic environment.

“" she added.

Mukami says with the prevailing capping of interest it will be a long time before Banks resume their normal lending rates therefore SME’s may continue to experience limited access to lending limiting growth in the sector.

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Spire bank customers are however assured of support whenever they visit the nearest Spire bank branch.

"” Milicent assured.