This archive report was first published on 22 August 2019.
On August 22, 2019, the Institute of Certified Public Accountants of Kenya (ICPAK) made a plea to Parliament to extend the interest rate cap law for two more years.
The law, which was championed by Kiambu MP Jude Njomo and came into effect in 2016, has been credited with ending expensive loans and instilling discipline in the economy.
According to ICPAK public tax committee chairman Phillip Mwema, the law has protected naive and ignorant borrowers from agreeing to loan terms that they would eventually default.
Mr. Mwema noted that the law has also led to a drop in auctioning incidents, as borrowers have become more disciplined in their borrowing habits.
ICPAK is seeking a two-year extension of the law to allow for the full realization of its intended purpose.
