MPs leave Kenyans at the mercy of banks as rate caps fall

Members of Parliament (MPs) have left Kenyans at the mercy of banks on the rate charged on new loans as the interest rate caps fall.

In a chaotic vote taken Tuesday afternoon, the majority of MPs walked out on house sittings to leave a depleted minority, effectively failing to overturn the recommendations by President Uhuru Kenyatta on the repeal of the rate cap.

To retain the rate cap, the Presidential proposal required the opposition of a minimum 233 members but by voting time, only 161 MPs were present therefore the House could not even debate on the matter.

Consequently, the President’s memo recommending the scrapping on the interest cap law automatically sailed through.

Upon the signing of the Finance Bill by President Kenyatta, new interest rates charged on loans will be left to the discretion of banks.

Nevertheless, MPs have taken up the recommendations of the National Assembly Finance Committee to hold existing loans at the prevailing rate of four percent above the Central Bank Rate (CBR) much to the relief of current loan holders.

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