Consumer Federation of Kenya (CFK) secretary general Steven Mutoro has said that the federation will lobby for 150,000 signatures from all counties to petition parliament over failure to pass the Banking Amendment Act.
This was an amendment in the Financial Bill 2011/2012 that sought to cap interest and put a base rate on interest given to all interest earning deposits. Parliament passed the Finance Bill without the amendments effectively ending borrowers hopes of accessing cheaper loans.
Mr. Mutoro says the public needs to come up in arms against legislators after it was alleged that the MPs were ‘bribed’ by a better send off deal to pass the bill without the amendments.
The amendments proposed that interest rates be capped at not more than 4 per centage points above the Central Bank Rate (CBR) of 18% which would have seen borrowers pay at interests of not more than 22%. The passed Finance Bill 2011/2012 has since been signed into law by the president.
Also read: No Capping Interest Rates, House Decides