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{
    "id": 1025050,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1025050/?format=api",
    "text_counter": 97,
    "type": "speech",
    "speaker_name": "Homa Bay CWR, ODM",
    "speaker_title": "Hon. (Ms.) Glady Wanga",
    "speaker": {
        "id": 590,
        "legal_name": "Gladys Atieno Nyasuna",
        "slug": "gladys-atieno-nyasuna"
    },
    "content": "Clause 4 as drafted has some drafting challenges because it does not come out expressly. If you look at Clause 4 (5), it says, “Notwithstanding the provisions of subsection (2) (c), in the case of private borrower to whom credit is extended for enterprise development or other purpose as may be prescribed by the Cabinet Secretary and does not have sufficient security for the loan, the Cabinet Secretary shall not guarantee the credit extended to such a borrower under subsection (1) unless…” What we want to say is actually what the Cabinet Secretary may do, not what he may not. So, the redrafting is to provide for what the Cabinet Secretary may guarantee. The redrafted one says, it has been divided into two portions: “Notwithstanding the provisions of subsection (2) (c), the Cabinet Secretary may guarantee credit which is extended to a private borrower, for enterprise development or such other purpose as the Cabinet Secretary may prescribe, where the borrower does not have sufficient security”. Then part (b) gives conditions. So, what we have done is clean it up but also add a few conditionalities and one of those is that the micro, small and medium enterprise that is being guaranteed should be a registered enterprise or company under the relevant laws. What we had earlier was registered by county government. Then what we have also added is a registered taxpayer and is compliant with the relevant tax laws. What we had earlier on is that the borrowers had complied with the relevant tax laws. We have also added one other part, part (e), which is not part of any group or related to any enterprise which would otherwise not be eligible for credit guarantee under this section. What that does is protect the SMEs from large enterprises which will now decide to register micro enterprises related to them for purposes of benefiting from these credit guarantees. That is what it protects there. I beg to move."
}