Cost of loans to rise after MPs approve 20pc duty

Kenya Bankers Association (KBA) CEO Habil Olaka. FILE PHOTO | NMG

The cost of credit is to rise from July after lawmakers rejected a plea from bankers to exclude fees and commissions earned on loans from 20 percent excise duty.

The parliamentary Finance and Planning Committee has retained a proposal in the Finance Bill 2021 to remove “fees or commissions” earned by financial institutions on a loan from exemption from duty under the current law.

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