Strategy & Advisory

Management Hubris & the Shock of Capped Interest Rates, by KIRIINYA KITHINJI

Management Hubris, Bank Interest Rates


President Uhuru's assent to the law capping interest rates (officially known as the Banking (Amendment) Act, 2015) is the ultimate nightmare for Kenyan banks.


Nevertheless, they should have seen it coming, and I would place the blame squarely on management hubris.


The top management of the banks clearly forgot or chose to ignore the good old "P" in the PESTEL analysis tool commonly used to analyze the attractiveness or otherwise of the overall business environment.