ADVERTISEMENT

Drama in Parliament as MPs approve Uhuru's demands

Uhuru's demands sail through

14% interest rate cap for banks flops as MPs fail to meet quorum during debate

The National Assembly on Tuesday repealed the 14% interest rate ceiling set for banks after the house failed to reach the quorum required to overturn recommendations made by President Uhuru Kenyatta.

ADVERTISEMENT

There was drama at the House as MPs opted to walk out of the chambers, leaving the debate at a depleted minority, hence the President's demands were adopted.

President Kenyatta refused to sign the Finance Bill which proposed the capped interest rates and in turn wrote a memo requesting the MPs to scrap the set rate before he appends his signature to the Bill.

"The Committee of the whole house has adopted the Proposed Amendments to the Finance Bill 2019, as per the President's Memorandum seeking to reverse the Caps put on Interest Rates of Bank Loans," a statement from the National Assembly read on Tuesday afternoon.

What repealed cap on interest rates means for Kenyans

With the new decision by Parliament, Kenyan banks will be free to set any percentage of interest on loans they approve.

Banks had rallied against the set capped rates saying that they had reduced profitability since banks had opted not to lend to individuals deemed as high risk.

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.
ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

Identity of woman who died in Juja dam with Kiambu businessman revealed

Identity of woman who died in Juja dam with Kiambu businessman revealed

‘Being homosexual isn’t a crime’ – Pope Francis says, calls for love for LGBTQ people

‘Being homosexual isn’t a crime’ – Pope Francis says, calls for love for LGBTQ people

Investigation launched into 2022 KCSE results

Investigation launched into 2022 KCSE results

Bill proposes Sh500K fine for employers who call staff outside working hours

Bill proposes Sh500K fine for employers who call staff outside working hours

How Magoha's son revived his father, tried to buy him more time

How Magoha's son revived his father, tried to buy him more time

Ruto recalls working with Magoha in condolence message

Ruto recalls working with Magoha in condolence message

Family confirms death of Prof. George Magoha

Family confirms death of Prof. George Magoha

PS Belio Kipsang makes changes to 2023 school timetable

PS Belio Kipsang makes changes to 2023 school timetable

School reopening: NTSA issues guidelines to parents, schools & motorists

School reopening: NTSA issues guidelines to parents, schools & motorists

ADVERTISEMENT