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{
"id": 1052296,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1052296/?format=api",
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"type": "speech",
"speaker_name": "Gem, ODM",
"speaker_title": "Hon. Elisha Odhiambo",
"speaker": {
"id": 13340,
"legal_name": "Elisha Ochieng Odhiambo",
"slug": "elisha-ochieng-odhiambo"
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"content": "not be able to access from mainstream lending facilities like banks and such other financial institutions due to their stringent conditionalities. Those innovative products have joined the long list of criticisms leveled on other digital lenders, as it is accused of saddling Kenyans with more debts and should, therefore, be regulated. The Fuliza Service is charging Kenyans between Kshs5 and Kshs30 per day on amounts borrowed, with funds ranging from Kshs100 to Kshs70,000, an amount considered too high. Similarly, Airtel and Telkom just like Safaricom are operating mobile money transfer platforms, a 24-hour mobile commerce and T-kash, a mobile financial service that enables subscribers to send money, buy goods and pay bills, respectively. Additionally, Airtel is operating M-Fanisi, a mobile banking and mobile money lending platform that gives its customers access to quick, easy banking services and loans on their mobile phones. All the banking and lending services offered by telecommunication companies do not undergo the banking regulations established by the Central Bank of Kenya as other banks, hence, susceptible to manipulation and extortion on the part of unsuspecting Kenyans and, further, cause an unfair competition to the banks. If those telecommunication companies were regulated by Central Bank of Kenya, and were able to pay taxes that are paid by banks, we as Parliament would not be asking the Treasury to release NG-CDF Funds. We would be sure that Treasury has enough funds, generated from those telecommunication institutions that offer money lending services. We are sure that the country would have a more robust economy that would afford to pay loans and pay for services that the country is looking forward to. In this regard, the Bill further seeks to amend Section 25 of the Kenya Information and Communications Act by inserting a new Section 25A that would require telecommunication service providers to legally separate their mobile talk, their voice and data services from any other business. This is so that they can participate like mobile money transfer and mobile money lending services, provide separate accounts and detail reports and generate revenue for the Republic of Kenya. The Regulation will also serve to not only protect consumers, but also enable Government to effectively, as I have said before, collect revenue through the clear distinction of various businesses. In this regard, the proposed amendment seeks to provide a regulatory framework, as I have mentioned earlier, for persons operating telecommunication to engage specifically only on their core business. Hon. Temporary Deputy Speaker, the current Kenya Information and Communication Act provides for the establishment of the Universal Service Fund (USF), which is administered and managed by the Communications Authority of Kenya (CAK). The purpose of this Fund is to support widespread access to ICT services, promote capacity building and innovation in ICT in the country and ensure that we can enhance our capability as a growing economy in East and Central Africa. It also aims to provide benchmarks for the countries that exist in the region so as to demonstrate that Kenya has the best capability in innovation. The USF was developed in 2009 to provide a common pool of capital to fund connectivity in areas across the country that do not access the critical infrastructure. As at February, the amount that was collected was Kshs7.1 billion. All licenses in the ICT sector contribute 0.5 per cent of the annual gross turnover to the Fund. Hon. Temporary Deputy Speaker, despite the anchorage of the funds in the statute, the management and implementation of the USF has been faced with several challenges which the The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}