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Uganda: MP Nsereko Seeks Bill to Cap Interest Rates

19.05.2017

 | Source:  The Observer; All Africa

Kampala Central MP Muhammad Nsereko wishes a private member's bill to cap interest rates, while David Bahati, the minister of state for Planning, said capping interest rates was not a solution.

Kampala Central MP Muhammad Nsereko is itching to push through a law that would see lending rates of banks regulated in spite of government's assurances that it would not enact such a law.

The Observer has seen Nsereko's letter dated May 10, instructing the House's director of the department of legal and legislative services to draft a private member's bill to cap interest rates.

Kenya capped interest rates last year at about 14.5 per cent per annum, a move that was majorly seen as an election issue. Since then, several political figures and traders in Uganda have called on government to have bank lending rates regulated.

Ugandan lending rates average 23 per cent per annum, a figure deemed by many as too high for business to thrive. Government and bankers insist the high interest rates are due to the tough economic conditions and high cost of money. Read more on All Africa.

Source: All Africa