Entry Instance

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

{
    "id": 1368378,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1368378/?format=api",
    "text_counter": 286,
    "type": "speech",
    "speaker_name": "Sen. Orwoba",
    "speaker_title": "",
    "speaker": null,
    "content": "If we are going to be intentional in terms of setting up these businesses, then we definitely have to review the Banking Act, 2015 CAP 488 to allow for renegotiations of those loans that are not performing. Therefore, the review is to ensure that once one has defaulted, the first point cannot be that they are being auctioned and being charged for the interest and the storage. If you go to Kiambu road, there are so many car yards that are just sitting there with vehicles receiving storage fees of people who have defaulted on loans. Sometimes you find numerous of these vehicles are actually attached to businesses. For instance, someone went out, got a Government tender, they were doing supplies or mapping and anticipating that they were going to be paid in a year or two year or even six months only not to be paid. If you go to Kiambu road you will find many of these double cabins because they need vehicles that are going to help them to deliver in that businesses. Due delayed payments from the county or the national Government, they default on the loans. Consequently, what happens? They now have to think on how they have to facilitate the payment of these assets that they took just purely that they could run the business. Mr. Temporary Speaker, as a country, we have also gone to the people who gave us loans, the Chinese and asked them to restructure our loans because we are not able to pay as they were. We should also allow for Kenyans to have that ability or possibility. In the event that they default, there should be room for renegotiations and the should be embedded in law. It should not be about the good will of an institution. As we stand now, they will tell you not to take a loan from some banks because you will not be able to renegotiate in the event that you are unable to meet your monthly payments. The issue of job creation is attached to enterprises. Setting up enterprises are attached to capital, which can only be got from somewhere. I am really hoping that by time the ‘Hustler Fund’ financing of assets is rolled out properly, they also need to look into the issue of renegotiation. This is because, other than the bad culture that they are trying to cure of these lenders of repossessing assets and things like that, it is also an issue of the credit reference or the ratings of your ability to take up any other loan in another institution. Mr. Temporary Speaker, Sir, there are so many people who would rather not even indulge into setting up businesses because of the fear that the little that they have and own will be take away from them. So, if we are not setting up enterprises, then we are not being intentional about dealing with job creation. As a Government and as the Kenya Kwanza Government, we have seen many defaulters of even taxes being given the leeway to be able to set up a plan to now pay. If you go to many institutions, including Kenya Power, there are so many people who have pending bills. As the Kenya Kwanza Government, we are actually sitting down and getting into a payment plan for those who cannot pay the full amount. Consequently, why are we not"
}