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Kenya's president signs into law bill repealing lending rates cap

Credit: REUTERS/SIPHIWE SIBEKO

Kenya's President Uhuru Kenyatta has signed into law this year's finance bill, which scraps a cap on banks' commercial lending rates, the presidency said on Thursday.

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NAIROBI, Nov 7 (Reuters) - Kenya's President Uhuru Kenyatta has signed into law this year's finance bill, which scraps a cap on banks' commercial lending rates, the presidency said on Thursday.

The government and the country's banks had blamed the rate cap, imposed in 2016, for curbing private sector lending growth and reducing the effectiveness of monetary policy.

Kenyatta had refused to sign the government's budget for this financial year earlier last month, demanding that lawmakers repeal the cap.

His amendment to the budget, technically known as the finance bill, passed through parliament on Tuesday after lawmakers failed to raise the required two-thirds of the house needed to override the veto.

(Reporting by Duncan Miriri; Editing by Hugh Lawson)

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

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