Abacus Wealth Management

No Capping Interest Rates, House Decides

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%.

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