Munya urges Uhuru to sign Bill on bank rates
Meru Governor Peter Munya while opening a water project on August 13, 2016. He has called on President Uhuru Kenyatta to sing into law a Bill on bank rates. PHOTO | BRUHAN MAKONG | NATION MEDIA GROUP
What you need to know:
- Council of Governors chairman Peter Munya said on Sunday that Kenyans are suffering because of the high interest rates that Kenyan banks and other financial institutions charge.
- Bankers have been up in arms urging the president to reject the Bill saying it will bring small borrowers to their knees.
- Accountants however, are in solidarity with Kenyans urging the president to sign the Bill.
Meru Governor Peter Munya has urged President Uhuru Kenyatta to sign the Banking Act (Amendment) Bill 2015 that seeks to regulate bank interests.
The Council of Governors chairman said on Sunday that Kenyans are suffering because of the high interest rates that Kenyan banks and other financial institutions charge.
“Kenyans have suffered for long from exploitation by commercial banks which are charging exorbitant interest rates,” Mr Munya said.
He spoke on Sunday at Ncuui church in Muthara, Meru where he attended a fundraiser.
The Bill provides that banks cap their interest on loans at no more than four per cent of the Central Bank’s recommended base rate.
It will be presented to the Head of State on Monday to either assent to it into law or reject it.
Bankers have been up in arms urging the president to reject the Bill saying it will bring small borrowers to their knees.
Accountants however, are in solidarity with Kenyans urging the president to sign the Bill.
Various commercial banks have begun issuing notices to their clients regarding their intention to cut interest rates.
The lenders have started to make commitments to the public to adjust rates in bid to persuade president Uhuru to decline the assent to the law.
