This archive report was first published on 30 October 2019.
President Uhuru Kenyatta's push to repeal the interest capping law has gained momentum after a parliamentary committee agreed with his recommendation.
The National Assembly Finance and National Planning Committee, chaired by Kipkelion East MP Joseph Limo, tabled a report on Tuesday proposing an amendment to the Banking Act to align it with a High Court ruling.
According to the report, any agreement or arrangement to borrow or lend made before the repeal of section 33 B of the Banking Act will continue to be in force, including interest rates and duration.
The decision is in line with the President's October 16 memorandum to the House, detailing the reasons for his refusal to sign into law the 2019 Finance Bill.
The MPs had initially passed the 2019 Finance Bill, which included an amendment to maintain the interest caps, but the Treasury had sought to repeal the 2016 Banking (Amendment Act).
However, the committee's proposal to amend the President's reservation on the bill now lies with House Speaker Justin Muturi, who will determine whether the proposed amendments fully accommodate the President's reservations.
According to standing orders, the assembly may propose amendments in light of the President's reservations, and if the amendments do not fully accommodate the reservations, the assembly can pass the bill by a two-thirds majority vote.
