Banking Act’s success motivates legislation by MPs

President Uhuru Kenyatta’s decision to sign the Banking (Amendment) Bill capping interest rates into law was a victory for Kenyan borrowers.PHOTO: COURTESY

President Uhuru Kenyatta’s decision to sign the Banking (Amendment) Bill capping interest rates into law was a victory for Kenyan borrowers. Besides the many challenges that will most certainly bedevil its implementation, the Act is evidence of the power of public opinion in influencing policy decisions.

From the start, it was clear that the Executive branch, backed by serious policy making organs of state (including the Treasury and the Central Bank), was against the Bill. But Parliament passed the popular Bill anyway and then leaned on public opinion to force the President’s hand. The President could have vetoed the Bill. But doing so would have spawned multiple political challenges he was not willing or able to deal with.