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In a debate over interest rates last week, Kuria decried a "massive dependence" on this type of debt. The MP spoke of the leadership of retired President Mwai Kibaki, saying that he has not seen the rate lowered.
"Mwai Kibaki, in 2004, did not reduce the interest rate yet we were on a single digit.W hy ?, he posed.
S & # 39; Speaking during the debate, which was also attended by the Kenyan Bankers Association, the MP said that Kenya was capping interest rates without exhausting all other alternatives.
"I thought that" at that time, we had not exhausted alternatives to the use of regulation to reduce the cost of credit. "
In his budget speech of June 1945] The Secretary of the Treasury , Henry Rotich, has promised to repeal the interest rate ceiling in effect since 2016.
MPs looked unhappy as Rotich spoke and Cofek had promised to campaign against the decision
only reaching four per cent above the Central Bank rate. 10 to 9.5%, which means that Kenyans will pay 13.5% on loans instead of 14%
Read: CBK regrets the interest rate cap due to negative effects
It also reads: The state must squarely care about the law on interest rates
The budget of Sh3.07 trillions this year has increased by About 10.83% compared to last year which amounted to 2.77 trillion Sh.
The Treasury allocated 870 billion shillings, representing a growth of 25, 79% compared to three years ago.
The ratio of debt service to revenue will reach 51.56%, while the debt service ratio should be 30%.
According to the Treasury, Kenya's debt is expected to reach 5,000 trillion "historical" shillings by June 2019.
In addition to domestic borrowing, the deficit will also be financed by external institutions up to 50%. .5 Billion and Other Not Another way to fund the budget as reported by the Treasury is a comprehensive review of the Income Tax Act to improve revenue collection.
More information: Inside the Sh3 billion Budget 2018/19
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