This archive report was first published on 7 November 2019.
On November 7, 2019, President Uhuru Kenyatta signed the Finance Bill 2019 into law, paving the way for banks to issue loans with unlimited interest rates.
The move reverses a law enacted in September 2016, which aimed to protect loan consumers from arbitrary interest rate adjustments.
However, the removal of the interest rate cap will not apply to loans taken before the law's passage, providing some relief to existing borrowers.
The Finance Bill 2019 also introduces a new tax regime, which will negatively impact low-income workers, including security guards, drivers, and cleaners.
Employers are now required to withhold tax before paying these workers, exacerbating the economic challenges faced by the country.
