President Uhuru Kenyatta on Thursday morning at State House, Nairobi signed into law the Finance Bill 2019.
The Finance Act 2019, among other provisions, repeals section 33b of the Banking Act that provides for the capping of bank interest rates.
The new law also introduces tax on income raised from the digital marketplace as a measure of ensuring equity in taxation.
The repeal of section 33b of the Banking Act is expected to enhance access to credit by the private sector especially the Micro, Small and Medium Enterprises (MSME’s) as well as cut out exploitative shylocks and other unregulated lenders.
As part of government efforts to support the affordable housing pillar of the Big 4 Agenda, the Finance Act 2019 exempts the National Housing Development Fund from income tax.
