Uhuru has 14 days to sign or reject Bill on bank loans

President Uhuru Kenyatta signs various pieces of legislation related to the Budget and Amended Political Parties Act into law at State House, Nairobi. Looking on are Deputy President William Ruto and National Assembly Speaker Justus Muturi. President Kenyatta received the Banking Act (Amendment) Bill on August 15, 2016. PHOTO | FILE

What you need to know:

  • Banks have opposed Banking Act (Amendment) Bill, preferring to let the market determine cost of loans.
  • State House Spokesman Manoah Esipisu confirmed that the President had received the Bill in the afternoon.
  • MPs have said that the Bill will help Kenyans access cheap loans by capping the amount charged on interest at not more than 14.5 per cent.
  • The Bill provides that banks cannot exceed four per cent of the Central Bank Base Rate, which currently stands at 10.5 per cent.

Kenyans will know in two weeks whether they will start enjoying lower interest rates on bank loans.

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