There is no explicit suggestion in the Kenyan Finance Bill 2024 to raise taxes on the loans themselves. However, a 20% excise duty on “other fees charged by financial institutions” is proposed, nevertheless, and this could affect loan costs. The potential effect is increased borrowing costs. By increasing interest rates or other loan fees, banks and lenders may pass on this additional tax burden to borrowers. This would increase the cost of borrowing, particularly for those who depend on loans for personal or business purposes. The other effect could also be diminished credit availability. Elevated borrowing expenses may deter certain borrowers from obtaining loans entirely. This could restrict loan availability for purposes like launching a business, paying for education, or making significant purchases. Borrowers, who include people and small businesses, are also more susceptible to fluctuations in interest rates and are probably going to be the ones most affected. Individuals who depend on uninsured loans can be particularly impacted by rises in lending fees.

Nonetheless, the anticipated benefit of the finance bill is an anticipated higher revenue by the government which will aid in paying for public expenditures. However, the outcome is still uncertain and is largely dependent on how lenders react to the levy and how much they charge borrowers. Some contend that restricting loan availability would impede economic growth.