This archive report was first published on 18 September 2019.
On September 18, 2019, the National Assembly was given one year to amend the Banking (Amendment) Act 2016 after a court ruling declared Section 33B (1) and (2) of the Banking Act unconstitutional.
Legislators argued that before the interest rate cap, commercial banks were charging exorbitant interest on loans, leaving Kenyans vulnerable to lenders.
MPs debating the Banking Amendment Bill, sponsored by Kiambu Town Member of Parliament Jude Njomo, are opposed to repealing interest rate caps.
They claim that banks had previously charged excessive interest on loans, and a repeal of the interest rate cap would leave consumers at the mercy of lenders once again.
The debate was postponed after it was discovered that Njomo was not present in parliament.
