Treasury Cabinet Secretary Henry Rotich has criticized the latest attempt by Parliament to regulate bank-lending rates by changing the law that governs the Central Bank of Kenya.
Mr Rotich told the National Assembly committee scrutinizing the Supplementary Budget that the enactment of the law sponsored by Kiambu Town MP Jude Njomo would reduce lending by banks.
“I think we have been very consistent on this matter. Interest cap Bills have come to Parliament several times since the Donde Bill in 2002. We have advised that capping the interest rates is not the solution.
“The solution is to deal with the underlying factors that cause the interest rates to go up,” he told the Liaison Committee.