Kenyan parliamentary panel recommends rate cap repeal -report

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NAIROBI, Oct 30 (Reuters) - The finance committee of Kenya's parliament has recommended that the house should repeal a cap on commercial lending rates in line with the president's demands, the Daily Nation reported on Wednesday.

President Uhuru Kenyatta refused to sign the government's budget for this financial year earlier this month, demanding that lawmakers repeal the cap, which has been blamed for a slowdown in private sector credit growth.

The team proposed that existing loans be shielded from any increases in rates even after the cap is repealed, the newspaper reported, citing a report by the committee issued on Tuesday.

The parliament will vote on whether to accept the finance committee's recommendations, setting the stage for the removal of the cap, which was imposed in 2016.

Lawmakers have the option of removing the cap from the bill or overruling the president if two thirds of the 349 members vote to override his position.

(Reporting by Duncan Miriri Editing by Shri Navaratnam)

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