President Uhuru Kenyatta declined to approve the Finance Bill 2019.
In a memo to Parliament, the head of State asked MPS to remove the commercial lending rate caps before the bill taken back to his office for consideration.
National Assembly Majority Leader on Wednesday confirmed that the President is not ready to assent to the Bill until the changes are made.
“The President has not assented to the Bill and has returned it to Parliament for review. The issue is the repeal of interest capping law,” Duale said.
The taxpayers will be left at the mercy of the banks if the Members of Parliament heed to his request following the rejection of the Bill at this stage.
The financial institution will have the nod to dictate their lending rate based on their risk assessment, a move many financial analysts feel will hurt the taxpayers.
Uhuru has backed the Treasury on the argument that the interest rate cap has been affecting economic growth. The rates have seen most banks denying customers loans.
He added: “The memorandum will be communicated to the House tomorrow afternoon (today) by the Speaker”.
The rejection of the bill is good news to the banks.