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Uhuru assents to Bill capping Bank interest rates
President Uhuru Kenyatta signing into law the Banking (Amendment) Bill, 2015 at State House on August 24, 2016. PHOTO | PSCU
By OBED SIMIYU
More by this Author
IN SUMMARY
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President Uhuru Kenyatta has signed into law a Bill capping bank interest rates at 4 per cent above the Central Bank Benchmark Rate.
The law will regulate applicable rates to bank loans and deposits thereby capping interests that banks can charge on loan and on deposits, President Kenyatta said in a statement to newsrooms on Wednesday.
President Kenyatta said that he had consulted widely and had learnt that Kenyans were disappointed and frustrated by the insensitivity of the banks.
“These frustrations are centred around the cost of credit and the applicable interest rates on their hard–earned deposits. I share these concerns,” said the President.
He said that banks had previously dodged and blocked introduction of the law with the rates continuing to shoot-up.
Mr Kenyatta’s action comes even after concerted efforts by banks to prevail upon him not to assent to the Bill arguing that they were already lowering the rates.
Uhuru assents to Bill capping Bank interest rates
President Uhuru Kenyatta signing into law the Banking (Amendment) Bill, 2015 at State House on August 24, 2016. PHOTO | PSCU
By OBED SIMIYU
More by this Author
IN SUMMARY
- 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 after concerted efforts by banks to prevail upon him not to assent to 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 said they will comply.
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President Uhuru Kenyatta has signed into law a Bill capping bank interest rates at 4 per cent above the Central Bank Benchmark Rate.
The law will regulate applicable rates to bank loans and deposits thereby capping interests that banks can charge on loan and on deposits, President Kenyatta said in a statement to newsrooms on Wednesday.
President Kenyatta said that he had consulted widely and had learnt that Kenyans were disappointed and frustrated by the insensitivity of the banks.
“These frustrations are centred around the cost of credit and the applicable interest rates on their hard–earned deposits. I share these concerns,” said the President.
He said that banks had previously dodged and blocked introduction of the law with the rates continuing to shoot-up.
Mr Kenyatta’s action comes even after concerted efforts by banks to prevail upon him not to assent to the Bill arguing that they were already lowering the rates.