This archive report was first published on 19 September 2019.
Kenya's Treasury had proposed scrapping the rate cap on commercial lending rates imposed in 2016, but Parliament's Finance committee reviewed upward taxes and maintained the cap in changes that saw lawmakers block the move.
On September 18, 2019, the committee reviewed taxes for the year starting July and sought to change the language of the rate cap to plug gaps highlighted by judges who earlier termed control of loan costs illegal.
Consumers will pay more for alcohol, cigarettes, and betting after Parliament reviewed upward taxes proposed by the Treasury in changes that saw the lawmakers block the move to scrap a cap on commercial lending rates imposed in 2016.
Parliament's Finance committee in its review of taxes for the year starting July maintained the rate cap but sought to change its language to plug gaps highlighted by Judges who earlier termed control of loan costs illegal.
Beer, wines, and spirits prices had increased by 5.17 percent in July after the annual automatic adjustment to factor inflation was effected.
Lawmakers were in agreement with the Treasury on the need for punitive betting taxes in response to the negative social effects of gambling on young and vulnerable members of society.
On interest rate caps, the committee said it will support the ongoing review of the law that seeks to entrench interest rate controls.
Parliament is currently debating a new bill capping commercial bank interest rates that seals loopholes that led the High Court in March to declare legal limits on lending charges unconstitutional.
