Entry Instance

HTTP 200 OK
Allow: GET, PUT, PATCH, DELETE, HEAD, OPTIONS
Content-Type: application/json
Vary: Accept

{
    "id": 1274717,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1274717/?format=api",
    "text_counter": 161,
    "type": "speech",
    "speaker_name": "Sen. (Dr.) Oburu",
    "speaker_title": "",
    "speaker": {
        "id": 194,
        "legal_name": "Oburu Ngona Odinga",
        "slug": "oburu-odinga"
    },
    "content": "Thank you, Mr. Deputy Speaker, Sir, for the opportunity. I want to comment on the Statement sought by my friend and neighbour, Sen. Cherarkey, on the Microfinance institutions. Microfinance institutions used not to take deposits. When eventually Parliament saw it fit to introduce a Bill to allow microfinance companies to take deposits, it was it was agreed that regional microfinance institutions will put a deposit of Kshs20 million as their capital and the national microfinance companies will deposit a capital of Kshs100 million. This issue of interest rates is a very serious one. It is not only concerning the microfinance institutions, but also concerning the banks. You will recall that there was a time or even before the last two years, there was a limit which was put on the interest rates. There was a regulation that was put of a certain percentage above the Central Bank of Kenya rates to regulate the interest rates. However, banks complained and said that they wanted to lend more money to people. They wanted to be allowed to do self- regulation and that they would not go far off the Central Bank rates. When the microfinance companies were allowed to take deposits, they also became under the Central Bank regulations. They were being regulated by the Central Bank. When the control of the limit for interest rates was removed, these banks and microfinance companies went haywire. They are now charging far above the Central Bank rates as recommended, yet they agreed to self-regulation. Perhaps it will be better for Parliament to reintroduce controls on these interest rates. When they are there, the banks complain that it is not giving them leeway to charge reasonably depending on the risks they take in lending. However, when you give them the leeway to now use reasonable rates, what reason do the banks have to impose interests of, say, 24 percent when the CBK rate is at 11 percent? Mr. Deputy Speaker, Sir, that is more than 50 per cent or 100 per cent of profit. Who makes that kind of profit in Kenya? No wonder, it is only these financial institutions who make money when Kenyans are going bankrupt. They are the only ones who declare windfall profits when the whole economy is nosediving. It is high time that Parliament"
}