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{
    "id": 1095822,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1095822/?format=api",
    "text_counter": 334,
    "type": "speech",
    "speaker_name": "Kinangop, JP",
    "speaker_title": "Hon. Zachary Thuku",
    "speaker": {
        "id": 13380,
        "legal_name": "Zachary Kwenya Thuku",
        "slug": "zachary-kwenya-thuku"
    },
    "content": " Thank you, Hon. Temporary Deputy Speaker. I want to briefly add my voice in support of this Bill on digital lending and digital transactions. It is high time that as a country we aligned ourselves and made sure that these transactions are well captured in law. This is the new normal where we reduce our interaction with banks by having a platform for accessing our money in real time. The traditional way of banking has been overtaken by events through technology, where you are vetted by the lending agency through a digital platform. Therefore, having statutes that take care of that is timely. On the same note, it is a platform that can be abused by bodies that lend if they are not well regulated. It is too enticing for one to get a credit facility. We have seen our people crying out there because they are so indebted that they cannot pay. The lenders then come for their collateral used as security. This is something that we need to tighten so that we do not have people who are happy borrowing but when it comes to paying it becomes a big issue. We have also seen a level of efficiency in disbursing funds through the digital platforms. The traditional way of banking, where you needed to issue a cheque and have the same cleared in two to three days is being overtaken by real-time transactions. For instance, we now have bulk M-Pesa transactions. If you have workers at your construction site and you want to disburse money, it is easy. You only need to put money in that system and disburse through their mobile telephone numbers. We need to come up with a know-your-customer process, like the practice by banks through which they know their customers. As it is right now, it is a blind platform. You get an SMS from, say, the Cooperative Bank saying they are advancing an amount of money because you qualify. All you need to do is to upload your information and within one day you have the loan. It is dangerous because fraudsters can take advantage and get credit in your name if they are able to get your credentials. These are some of the issues that we need to look at. Hon. Temporary Deputy Speaker, I just wanted to add my voice in support."
}