President Kenyatta to receive Banking (Amendment) Bill 2015

August 15, 2016 10:04 am
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President Kenyatta will then have 14-days within which to either sign or reject it by sending it back to Parliament/FILE
President Kenyatta will then have 14-days within which to either sign or reject it by sending it back to Parliament/FILE

, NAIROBI, Kenya, Aug 15 – President Uhuru Kenyatta is Monday expected to receive the Banking (Amendment) Bill 2015 seeking to cap interest rates in the Banking Sector.

The Bill if signed into law will ensure that Kenyans get cheaper credit from banks.

President Kenyatta will then have 14-days within which to either sign or reject it by sending it back to Parliament.

The Bill provides that banks cap their interest on loans at no more than four per cent of Central Bank of Kenya base rates.

The banks are lobbying against the Bill, which seeks to cap their lending rates and put a floor to interest they pay on deposits.

The Bill, passed by Parliament almost two weeks ago, also ignores the role of the Treasury in the high interest rate regime and puts the burden on the banks.

President Kenyatta has come under pressure from various groups, including the opposition, to sign it into law.

However, bankers want him to reject the proposed law, saying market forces should be allowed to determine interest rates.

The Bill was sponsored by Kiambu Town MP Jude Njomo.

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