The National Assembly was on Wednesday forced to adjourn due to lack of quorum after many legislators opted to keep off from Parliament.
Only 15 of the 349 MPs showed up, forcing Speaker Justine Muturi to adjourn the proceedings in compliance with Standing Orders.
It's believed that the legislators opted to 'boycott' the Wednesday session due to the controversy surrounding interest capping law that was defeated on Tuesday.
Of the 349 MPs, only 161 showed up. Voting could not take place since at least 233 MPs were needed in the chambers to overturn President Uhuru Kenyatta's reservations.
President Uhuru Kenyatta had rejected the bill which caps interest rates at 14 percent. This now means banks will have exclusive powers to determine loan interests.
“In the very unlikely event the Presidential memo stands, I can promise banks that we will revisit,” he said.
The lifting of interest rate caps however appears to hardly matter to the repeatedly mentioned SMEs who historically have sat out of the formal banking channels.
“I have chosen to move on. Rate cap or not, SMEs are majorly financed through chamas, Sacco’s, family and friends. Even with the rate cap gone, banks would still exercise caution in lending particularly with the recent implementation of tighter accounting standards,” Viffa SME Consult Managing Director Victor Agolla told Citizen Digital in an earlier interview.