Present interest rates
Speaker Muturi said on Friday the House clerk informed him that het had received the 2015 Banking Act (Amendment) Bill on Thursday.
Mr Muturi said everything in the Bill has been confirmed to be intact as passed by Parliament and it is ready for presentation to the President.
The Bill provides that banks cap their interest on loans at no more than four per cent of Central Bank of Kenya base rates.
The Speaker dismissed the perception that he has been “sitting” on the Bill, saying there are law-making processes that must be followed.
“Let me present it next week because I have not even looked at it, remember there is even a place for me to sign, ” said Mr Muturi.
Mr Muturi said he had not signed the Bill because he has not yet received it.
“Surely, can I take even ten minutes to sign six copies of the Bill?” asked Mr Muturi, adding that he is not withholding the Bill from the President.
The Speaker noted that public debate on the Bill had taken a political angle with some leaders seeking to capitalize on it for political mileage as the General Election approaches.
He made the remarks on Friday on the sidelines of the National Assembly House Business Committee retreat at Serena Beach Hotel in Mombasa.
Mr Muturi’s remarks come barely two days after banks reacted to the proposed capping of interest rates by announcing that they would pool Sh30 billion to lend to small- and medium-size enterprises at friendly interests rates.
Some MPs have dismissed the move, calling it a public relations gimmick meant to hoodwink Kenyans.
The banks are lobbying against the Bill, which seeks to cap their lending rates and put a floor to interest they pay on deposits.
The Bill, passed by Parliament almost two weeks ago, also ignores the role of the Treasury in the high interest rate regime and puts the burden on the banks.
President Kenyatta has come under pressure from various groups, including the opposition, to sign it into law.
However, bankers want him to reject the proposed law, saying market forces should be allowed to determine interest rates.
The Bill was sponsored by Kiambu Town MP Jude Njomo.
(Editing by Joel Muinde and Henry Gekonde)
Thu Aug 11 17:41:00 EAT 2016
Lawmakers say the offer is meant to dissuade President Kenyatta from signing the proposed law aimed at capping interest rates.