FINANCE BILL 2019

Uhuru wrong on interest rate capping -Tigania West MP

He said the decision by President Uhuru Kenyatta, who recently asked MPs to remove the interest rate capping, was uncalled for.

In Summary

•The National Assembly will need to raise a two-thirds majority to overturn Uhuru's memorandum and retain the cap, which was introduced on September 14, 2016.

•President Uhuru Kenyatta vetoed the decision by MPs to retain the interest rate cap in the Finance Bill, 2019.

Tigania West MP John Mutunga at Kianjai ward on Saturday November 2. He said the President is wrong on Interest rate capping
Tigania West MP John Mutunga at Kianjai ward on Saturday November 2. He said the President is wrong on Interest rate capping
Image: Dennis Dibondo

Tigania East MP John Mutunga has said President Uhuru Kenyatta should not have overturned the interest rate capping.

He said the Parliament passed that no Kenyan should be charged a loan above four per cent beyond the Treasury Bill rate.

He said currently, the government is borrowing at nine per cent Treasury bill rate and Kenyans currently cannot be charged above 13 per cent.

 

Mutunga spoke on Saturday  in Kianjai ward where he led locals in a tree planting session.

He said the decision by President Uhuru Kenyatta, who recently asked MPs to remove the interest rate capping, was uncalled for.

The MP said bills always lack the two thirds, that is about 233 members, to overturn the president's memorandum.

Mutunga said MPs should be given enough notice for motion as they have resolved to overturn the decision by the president to remove interest rate capping.

The National Assembly will need to raise a two-thirds majority to overturn Uhuru's memorandum and retain the cap, which was introduced on September 14, 2016.

President Uhuru Kenyatta vetoed the decision by MPs to retain the interest rate cap in the Finance Bill, 2019.

In a Memo sent to Parliament, Uhuru rejected the Finance Bill asking the lawmakers to repeal section 33B of the Banking Act.

 
 

Should MPs fail to raise the number, Uhuru's veto will carry the day, removing the cap which has been criticised by bankers and some economists.