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{
    "id": 1095827,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1095827/?format=api",
    "text_counter": 339,
    "type": "speech",
    "speaker_name": "Kibwezi West, Independent",
    "speaker_title": "Hon. (Dr.) Patrick Musimba",
    "speaker": {
        "id": 1804,
        "legal_name": "Patrick Mweu Musimba",
        "slug": "patrick-mweu-musimba"
    },
    "content": " Thank you, Hon. Temporary Deputy Speaker, for giving me this opportunity to contribute to this Bill. At the outset, I commend the Departmental Committee on Finance and National Planning, ably led by Hon. Gladys Wanga and my good friend and neighbour Hon. Waihenya, for having had the temerity to address themselves to this particular aspect of finance to catch up with innovation. We always play catch-up. Change is constant, but it seems our regulatory authorities play catch-up, especially in the realm of money. We have, for instance, now that we are talking of digital lenders, issues to do with velocity of money — access. Why are people borrowing? It is because we are still stuck in traditional cycles of paying people every 30 days. The dependency ratio in Kenya is 1 to 10. Every one earner supports 10 dependants. It is no wonder there are 10 million people on digital lending platforms. This begs the question: Why are we in this quagmire in the first place, where people accept to pay upwards of 300 per cent in interest to access money? This calls out to a fundamental problem that the money is not moving. The role of the Central Bank of Kenya is indeed, in advising the Kenya Government as their principal banker to say, how do we accelerate the flow of money in Kenya? Why can payrolls not be run now that we are on digital platforms? How can payrolls not be run now that we are on digital platforms, say, even on weekly basis or fortnightly basis? You unleash that power and reduce the pressure of citizens having to say they need salary advances after 15 days. People are looking for alternative ways of borrowing, thus they get exposed to shylocks. They are charged exorbitant interest rates by digital lenders. When you are under pressure and you are looking for help, you will turn to whatever lender and the interest rates will be applied on you. However, the bigger issue that we have to address now is the traditional way in which things have been done. We certainly need to change. If I take my Visa ATM card, for instance, I can walk to any ATM in Kenya and withdraw my money so long as the card is Visa or MasterCard supported. If I can do that at any ATM, how come I cannot enter any bank and withdraw money from my account? If I am banking with Barclays Bank, why can I not enter a Standard Chartered Bank, go to the counter and withdraw money from my account and transact from there? We cannot have 20 banks in one town competing yet they do not have economies of scale. This is where we need to escalate. A second point or concern that needs to be looked at is that we need to have an active innovations department even within the Central Bank of Kenya – that is the advent of crypto currencies. Today Kenya and any other country in the world is dependent heavily on tax collection. 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."
}