Kenyan President Uhuru Kenyatta says he has signed into law a bill that caps interest rates for bank lending and deposits.

Kenyatta said Wednesday he has consulted widely and it is clear that Kenyans are disappointed and frustrated with the "lack of sensitivity" by the financial sector.

Proponents for capping interest rates say the rates of up to 21 percent have been stifling economic growth in the East African country.

The new amendment caps banks' lending interest rates to no more than 4 percentage points above the Central Bank rate, currently at 10.5 percent.

However, the Kenya Bankers Association has opposed regulation of interest rates, saying banks can regulate themselves. The association says that when interest rates are capped, banks will lend only to those with less risk.