This archive report was first published on 5 November 2019.
On November 5, 2019, President Uhuru's recommendations to remove the interest rate cap law sailed through the National Assembly, despite a lack of quorum.
Only 161 members of parliament were present in today's session, falling short of the minimum 233 members required for a vote.
As a result, the proposals passed through without a vote, marking a significant shift in the country's banking sector.
The removal of the rate cap regulation will see banks offering loans at market-determined interest rates, as opposed to the capped interest rates that have been in place since September 2016.
Economists have welcomed the move, claiming it will allow credit to flow to the private sector, which has been starved of funds due to the interest rate limit.
Additionally, the banking sector is expected to benefit from the removal of the rate cap by charging higher interest rates than they did during the rate cap period.
