Members of Parliament on Tuesday failed to raise the required 233 votes to retain interest rate cap, with only 161 MPs present.
This effectively means that borrowers are now at the mercy of banks, as President Uhuru Kenyatta's memo effectively removes the lending rate caps
The repealed law allowed banks to charge only four percentage points above the Central Bank lending rate benchmark rate.
Correction: An earlier version of this story said that the bid to remove caps had flopped, but the article has been updated.
More follows.
