Impact of APR pricing mechanism on bank interest rates. A study of the banking sector in Kenya

      Аннотация: Annual percentage rate is a pricing mechanism tool introduced by the Central bank of Kenya and Kenya bankers association, following industry consultations carried out in the banking sector in Kenya in 2013. These consultations revealed that the banks were making abnormal profits at the cost of the customer. In the new constitution of Kenya enacted in 2010, the consumer protection act section 46 explains the consumer rights and outlines that consumers have a right to protection. Therefore, the Central bank of Kenya drew up prudential guidelines that would govern this matter and see to it that the cost of borrowing was addressed. This book also examines how APR as pricing tool, has been integrated into the market and whether the rights and objectives it was set to carry out have been addressed since its implementation in July 2014. The study should aid consumers and banks on the new mechanisms and guidelines on standardization of rates, cheaper credit, and easier decision making process.

Ключевые слова: BANK CREDIT, Interest Rates, Kenya, loans, APR, Total cost of credit