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{
    "id": 1026714,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1026714/?format=api",
    "text_counter": 430,
    "type": "speech",
    "speaker_name": "Kathiani, WDM – K",
    "speaker_title": "Hon. Robert Mbui",
    "speaker": {
        "id": 1750,
        "legal_name": "Robert Mbui",
        "slug": "robert-mbui"
    },
    "content": " Thank you, Hon. Temporary Deputy Speaker for this opportunity. I begin, first, by congratulating Hon. Gladys Wanga for her new appointment and election to the position of Chair. Even for those of us who had not read the Bill, just listening to the explanation when she seconded was enough for us to understand the content of the Bill and the import and purpose for which it has been brought to us. Congratulations for the excellent work from the beginning. It is a fact that MSMEs are the backbone of the economy and not just ours, but generally all over the world. I remember that even in the KANU era, there was that issue that the late President Moi had brought up in regards to the jua kali sector. At that time, it was clear to him as the President that it was important for us to harness the energies and the abilities of that informal sector. That is part and parcel of what we call MSMEs. Those are normally the very small ones. It is also important to note that currently, we have to ensure that our economy is insulated against the ravages being caused by Covid-19 which is seriously affecting the small and medium enterprises. I am happy that the Public Finance Management Bill proposes an amendment that intends to create a framework within which the Government can provide credit guarantees for those micro, small and medium enterprises. I have noted two issues which I want to raise. The first one is the definition of the micro, small and medium enterprises. It is extremely wide. Micro would refer to very small businesses probably employing no one because the owner is the only employee up to those that employ a maximum of 250 people. It is also businesses that have a turnover. I do not know the minimum turnover but we are looking at a maximum of Kshs100 million. Those are fairly well-to-do businesses. My first concern would be how fair will the competition for those guarantees be between those businesses that employ five or ten people and those that employ 250 people. It is important. There are those that have a turnover of Kshs100,000 or Kshs500,000 and those that have a turnover of Kshs100 million. It is important that we look for a way in which we ensure that there will be fairness in the distribution of those resources so that the bigger fish do not swallow the small ones. That is what normally happens when funds are given and there is no direct control by this House. The second concern I have is that we have to ensure that the regulations that will govern those guarantees must also guarantee that the enterprises that will get this money are protected from any rogue Government official. Someone could give a guarantee and pull the plug at the wrong time. I remember when I was a young man I heard that politicians of those days would be given loans or assisted to get loans from Government banks and invest in agriculture. When they disagreed with the powers that be, those loans would be recalled at short notice. That, obviously, led to a lot of people going bust. So, it is important that we insulate these businesses, so that we ensure that there is no Government official who can pull the plug."
}