World Markets

Kenyan parliamentary panel recommends rate cap repeal -report

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.

Adds background

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The team proposed that existing loans be shielded from any increases in rates even after the cap is repealed, the newspaper reported, citing a report by the committee issued on Tuesday.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

((duncan.miriri@thomsonreuters.com; Tel: +254 20 4991239; Reuters Messaging: duncan.miriri.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest World Markets Videos

First Look With Surveillance: China Data, Ukraine Aid

May 20, 2022

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More