MPs oppose interest rate cap repeal

Written By: Regina Manyara
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Members of Parliament debating the Banking Amendment Bill say interest  rate caps are here for the long haul.

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Legislators argue that before the interest rate cap, commercial banks were charging exorbitant interest on loans and a repeal of the same would leave Kenyans at the mercy of the lenders once again.

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The court in March this year gave the National Assembly one year to amend the anomalies in the Banking (Amendment) Act 2016 in a ruling that declared Section 33B (1) and (2) of the Banking Act unconstitutional or revert to free floating interest regime.

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The amendment bill which is sponsored by Kiambu Town Member of Parliament Jude Njomo is now in its second reading, as parliament seeks to clarify wordings in the Banking (Amendment) Act of 2016.

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The MPs debating the bill said they are opposed to repealing interest rate caps.

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They argue that banks had charged in the past exorbitant interest on loans.

The debate was postponed after it was discovered that Njomo who is sponsoring the amendment was not in parliament.

 

 

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