Browsing: Expensive loans

Loans will become expensive in Kenya after repealing the rates cap law. Borrowers are at the mercy of the banking sector and Kenyans should brace themselves for expensive loans. www.theexchange.africa

World Bank, IMF biggest winners in Kenya’s interest rates cap repeal

Kenya

Three years after the Banking (Amendment) Bill, 2016, became law, it is time now for Kenyans to brace themselves for expensive loans.

The law dictated that commercial lending rates could not be more than four per cent above the Central Bank of Kenya (CBK) benchmark rate.

But now, borrowers are at the mercy of the exploitative banking sector after regaining the freedom to vary lending rates.

MPs desert parliament for law to pass

On Tuesday, November 5, 2019, parliamentarians deserted Kenyans giving President Uhuru Kenyatta a victory in his decision to repeal the interest rates cap.

As is the tradition when important matters affecting Kenyans are being discussed, only 161 MPs were present to vote. It is a constitutional requirement that any law that needs amending has to have at least 233 MPs supporting it for it to pass.

By failing to overturn Kenyatta’s reservations on the Finance Bill, 2019, …