Low-income earners in Kenya can now take bank loans by using livestock, crops and other household appliances as collateral.
President Uhuru Kenyatta signed into law the Moveable property Security Rights Bill 2017. According to the presidency, the law “enhances the ability to access credit using movable assets.”
‘‘The new law facilitates the use of moveable property as collateral for credit facilities, establishes the office of the Registrar of security rights as well as provides for the registration of security rights in movable property,’‘ the presidency added.
The law will allow especially women, small-scale farmers and young people to secure bank loans as parts of efforts aimed at boosting the economy.
The head of Kenya bankers Association, Halil Olaka, lauded the new law stressing that it was ‘‘a good development for the industry.’‘
Kenya’s move comes barely a month after the Finance Minister in cash-strapped Zimbabwe tabled a bill in parliament to direct banks to accept livestock as collateral for cash loans to informal businesses.
The post Kenya Law Okays Livestock, Household Appliances For Bank Loans appeared first on Woman of Substance.
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