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Kenyans at mercy of banks as MPs skip vote on Uhuru rate cap memo

Kenyans are now at the mercy of banks on the rate charged on new loans after MPs failed get required numbers to overturn president Uhuru Kenyatta’s recommendations on the rate cap.

While 233 MPs were required to vote in opposition of the memorandum in order to retain the cap, only 161 MPs were present therefore the House could not even debate on the matter.

The Law stipulates at least two-thirds majority or 233 of the 349 MPs must be in the House for a possible veto of a president’s memorandum.

This means that the Bill will now be taken to the president for assent.

However, the MPs amended the president’s text to cushion those already servicing the loans from being subjected to high interest rates by commercial banks.

The earlier cap which came into effect in August 2016 put a limit on bank’s lending rates to 4 percentage points above the central bank’s benchmark interest rate.

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