Nyeri County Senator Wahome Wamatinga wants the National Treasury and Economic Planning to come up with a policy framework to review the Banking Act in order to renegotiate the repayment terms of the loans.

Through a motion in the Senate, Sen. Wamatinga argues that such an action by the National Treasury and Economic Planning will provide cushion for Kenyans with non-performing loans and prevent the loss of their movable assets.

The lawmaker reveals that the high unemployment rate in Kenya has pushed many Kenyans to seek loans from Saccos, Microfinance Institutions and Banks to start Small and Medium Enterprises (SMEs) to sustain their livelihoods but unfortunately the unfavorable business environment has forced them to default on their loans.

The situation according to the legislator has made several Kenyans lose their assets due to their failure to repay the loans.

“The youth in particular have invested in movable assets, including vehicles and motorcycles, to start business in the transport industry and most of them have signed up to the ride hailing apps including but not limited to Uber, Taxify, Bolt and Little cab,” explained Sen. Wamatinga.

“The Banking Act 2015 CAP 488 does not provide for renegotiation on the loan repayment agreement whenever the business environment becomes unfavorable as a result of the high cost of living, lowered earnings from the App providers and high interest rates,” added the lawmaker.