In banking, the adoption of technology and the interest rate cap played a big role in layoffs. The interest rate cap has placed pressure on profit margins of banks, leading to job losses. Interest rate spreads have several functions for banks, of which perhaps the most important is insulating the institutions from bad borrowers. In removing this provision, the interest rate cap is essentially making banks to lend money to good and bad borrowers at the same rate. As a result, some banks have responded to the interest rate cap by shedding jobs to cut down operating costs and safeguard profits.

Source: Daily Nation February 12, 2017 22:41 UTC