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{
    "id": 1097515,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1097515/?format=api",
    "text_counter": 349,
    "type": "speech",
    "speaker_name": "Funyula, ODM",
    "speaker_title": "Hon. (Dr.) Wilberforce Oundo",
    "speaker": {
        "id": 13331,
        "legal_name": "Wilberforce Ojiambo Oundo",
        "slug": "wilberforce-ojiambo-oundo-2"
    },
    "content": " Thank you, Hon. Temporary Deputy Speaker. Chances are very high that I will close the Floor for the day. I support the Central Bank of Kenya (Amendment) Bill (National Assembly Bill No.10 of 2021) that is amending the Central Bank Act to provide for digital-lending and regulations for digital-lending. Since time immemorial, people have had to borrow. In my life before I came here, we used to say that debt is cheaper than equity and that nobody has ever made money using their own money. So, borrowing has been with us over time. It has metamorphosed over time in different ways. The need to settle some bills, invest and meet some urgent financial obligations will always arise. However, with the traditional way that banks operate, they are unable to respond to the changing needs of the typical borrower, human being and consumer in this new age. Typically, you require three to four weeks or months to get a loan from the bank. That is why digital-lending started shylocking to fill the gap that was created by the very bureaucratic banking procedures. However, the emergence of digital-lending has dragged very many people into it with very severe negative consequences. As my colleagues have said, if you call 10 people in our constituencies because you wanted to send them money, I can bet that about six to seven of them would say: “Do not send to this number because it has Fuliza . Do not send to this number because I have delayed paying M-Shwari and they will take everything.” Young people, as defined by the Constitution, are those below 35 years. Quite a number of us, most politicians, myself included, find Fuliza fairly convenient, and if I am called because there is an emergency in the constituency, I do not have to stop talking to rush to the bank to withdraw money and go to the M-Pesa agent. I just pull out my phone, send the money and sort it out when I go home. However, as good and innovative as it is, there is probably a justifiable call to regulate the process. The interest rates are fairly high. Secondly, the danger and fear of violating privacy is forever with us. That is why any attempt to regulate is basically welcome. However, I am a bit concerned by the provisions of Clause 4 of the Bill that seek to amend Section 33(r) of the Central Bank Act in respect to setting conditions. What is the issue of capital adequacy all about? Those are guys who do not receive anybody’s money. They operate like shylocks using their own money by generating it in one way or another. Some of the conditions that are being set for registration, licensing and regulation should be relaxed in view 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."
}