Team delays review of bill on borrowing

A National Assembly committee yesterday postponed review of a bill that seeks to cap interest rates.

The Committee on Finance, Planning and Trade said it had to wait for more views from the public, before scrutinising the Banking (Amendment) Bill.

Committee Chairman Benjamin Langat said the views were "trickling in" and that his committee was keen to get "as many views as possible" before making a decision that may be a relief to millions of borrowers choked by high interest rates.

The committee had been convened to discuss the bill. However, the MPs were informed that the memoranda from the public – on the proposed law that will for the first time prevent financial institutions from charging extortionist interest rates—were few. The bill also seeks to make sure banks disclose all hidden charges.

"A bank or a financial institution shall set the maximum interest rate chargeable for a credit facility in Kenya at no more than four per cent above the base rate published by the Central Bank of Kenya," the proposed law partly reads.

Mr Langat, who is also the Ainamoi MP, said he expects the House Business committee to decide the speed with which the bill will be worked on through the legislative pipeline.