MPs Push for Crackdown on Predatory Lenders as Turkana Residents Demand Bigger Share of Mineral Wealth

 Members of the National Assembly Departmental Committee on Finance and National Planning have called on the Central Bank of Kenya (CBK) to intensify enforcement against predatory money lenders and digital credit providers accused of exploiting borrowers through excessive interest rates.

The call was made during a public participation forum held at Turkana University, where residents also presented their views on proposed legislation, including the Finance Bill, 2026, and the Kenya Revenue Authority (Amendment) Bill.

Committee Chairperson Kimani Kuria said existing laws already provide safeguards against exploitative lending practices and warned that lenders charging illegal interest rates beyond principal amounts must face strict regulatory action.

He urged CBK to fully enforce microfinance and digital lending regulations to protect small traders and low-income borrowers who rely on quick credit facilities for survival.

Residents told the committee that many small business operators in Turkana have been subjected to high and unsustainable interest rates, calling for stronger consumer protection measures within the financial sector.

At the same time, participants welcomed proposals to establish a Sovereign Wealth Fund but urged lawmakers to ensure counties benefit directly from revenues generated from natural resources, particularly petroleum and minerals found in Turkana County.

Some residents argued that Turkana should receive a larger share of the fund due to its resource endowment, calling for fair and equitable distribution of national wealth.

Other submissions included calls to exempt animal drugs and livestock feed from taxation to ease the burden on pastoralist communities facing rising production costs.

Residents also raised concerns over proposed taxation on betting winnings, arguing that gambling earnings form a key source of income for unemployed youth and should not be heavily taxed.

Youth representatives who attended the forum urged lawmakers to ensure that proposed tax measures do not stifle economic opportunities for young people or small enterprises.

Turkana Central resident Moses Moseti encouraged citizens to carefully review the proposed legislation before forming conclusions, noting that some provisions were already well structured but required minor adjustments.

In response to concerns over clarity in the Bill, Kuria assured residents that provisions relating to digital transactions were straightforward and would be refined further to avoid ambiguity.

“There’s nothing hidden in the law. We will ensure clarity on digital platform transactions,” he said.

The committee also noted that under the proposed Kenya Revenue Authority (Amendment) Bill, taxpayers with disputed arrears could benefit from a tax amnesty, with penalties, interest, and fines waived to ease compliance burdens.

Turkana South MP John Ariko Namoit clarified that revenue-sharing frameworks for petroleum and mineral resources are already provided for under existing laws.

The committee’s three sub-groups are expected to conclude public participation exercises across counties by Monday, June 8, 2026, before beginning report compilation and analysis.

The forum highlighted growing public concern over taxation, lending practices, and equitable resource distribution, even as lawmakers move closer to finalizing key financial legislation.