Loan borrowers will have to put up with the high interest rates main stream banks charge them on loans after parliament shot down proposed amendments to the finance bill 2011/2012.
The Jakoyo Midiwo sponsored amendments to have bank interest capped and have a base on the interest given to deposit attracting accounts was defeated Thursday night by 58 to 17 votes.
The proposals to have interest rates controlled has been a contentious issue for more than a decade and since the introduction of Finance Bill 2011/2012, parliament has rejected the bill forcing the Finance minister to withdraw it twice.
The amendment had proposed to cap interest rates on loans at at most 4 per-centage points more than the 18% Central Bank Rate, which would be at 22% and put a base on deposit interests at 12.6%.