Uhuru assents to Bill capping bank interest rates

President Uhuru Kenyatta signing into law the 2015 Banking (Amendment) Bill at State House on August 24, 2016. PHOTO | PSCU

What you need to know:

  • President Kenyatta said that he had consulted widely and had learnt that Kenyans were disappointed and frustrated by the insensitivity of the banks.
  • Mr Kenyatta’s action comes even as banks made concerted efforts to prevail upon him not to sign the Bill, arguing that they were already lowering the rates.
  • And shortly after the President announced his decision on Wednesday, the bankers said they were still opposed to the law but added that they will comply.

President Uhuru Kenyatta has signed into law a Bill capping bank interest rates at 4 per cent above the Central Bank Benchmark Rate, currently at 10.5 per cent.

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