There are statements being circulated on social media that indicate that His Excellency President Uhuru Kenyatta has taken a position on the Banking (Amendment) Bill 2015. These views are not official and remain unconfirmed. As we await the decision on the matter, the banking industry, through the Kenya Bankers Association, welcomes the opportunity to reengage with the Parliamentary Committee on Finance, Planning and Trade, towards responding to the concerns of the public whilst addressing the issue of interest rates in a sustainable way.
Since the Bill was passed by Parliament a fortnight ago, we have maintained our support of the spirit of the legislation, as well as the clause that requires banks and financial institutions to disclose all charges and terms relating to a loan before the loan agreement is signed. Moreover, as an industry, we remain committed to play our part in enhancing the growth and development of our economy. Banks therefore have signed a Memorandum of Understanding with the Central Bank of Kenya which outlines several interventions that can be further enhanced toward resolving this matter without legislation. We have already seen banks respond and move to lower their loan rates. We therefore believe that the referral of this Bill back to Parliament offers the stakeholders an opportunity to reach a long-lasting solution that supports Kenyans and builds our economy.