MPs vow to keep caps on interest rates

MPs vow to keep caps on interest rates
Parliament has until March next year to make the amendments, failure to which the interest rate cap will be repealed

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Members of Parliament are adamant that they will keep the caps on interest rates when they amend the Banking Amendment Act as was directed by the High Court in March this year.

Legislators say there is need to ensure that commercial banks do not exploit Kenyans by charging very high-interest rates.

The proponent of the Banking Amendment Bill Jude Njomo is rallying fellow lawmakers to ensure that the Banking (Amendment) Bill 2019 is reviewed with the aim of ensuring that the interest rate cap is not repealed as it is structured to protect the mwananchi.

He said the unavailability of credit in the market for SMEs is an attempt by banks to arm-twist the government to repeal the law so as to reap higher interest from Kenyans.

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He says that the financial institutions were not sincere with parliament when they sought to repeal the cap forcing parliament to scrap off the floor cap on deposit rates in 2018.

Parliament has until March next year to make the amendments, failure to which the interest rate cap will be repealed leaving it to market forces, meaning each bank will independently price credit to borrowers

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