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{
    "id": 1511188,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1511188/?format=api",
    "text_counter": 264,
    "type": "speech",
    "speaker_name": "Ainamoi, UDA",
    "speaker_title": "Hon. Benjamin Lang’at",
    "speaker": null,
    "content": "providers, including digital lenders, under the CBK regulations. It requires them to be licensed by the CBK so they can give information for purposes of getting them to order. In Clause 4, the CBK is required to create a code of conduct and implement the licensing requirement for these providers. The other business this Bill brings under the CBK ambit is the credit guarantee business. They are normally charged with underwriting the risk of borrowers for lenders. Clause 9 proposes creating regulations on credit guarantee business licensing under the Central Bank Act. We also have lenders who give credit to boda boda riders or young men. In fact, we have been investigating a case where they lent to a boda boda, but when the loan had been repaid to 70 per cent, they took away the boda boda without any refund to the rider. Clause 19(1) of the Bill states: “(1) A non-deposit-taking microfinance business shall exhibit transparency in dealing with the public and, in particular shall— (a) furnish borrowers with accurate information on the procedure and conditions for lending; (b) inform borrowers, prior to the acquisition of a loan, of the financial costs associated with the procurement and servicing of that micro-loan to be met by the borrower.” Earlier on, one could sign forms without knowing the loan's interest rate or hidden cost. But now, the non-deposit-taking microfinance must inform you of the interest rate and other costs associated with the loan and maintain confidentiality of information relating to the borrowers. In particular, a non-deposit-taking business shall, in the course of debt collection… This has been the problem where you have paid up to 70 per cent, but then the next day, they come for you and forcefully take the asset from you without respect. The proposed amendment in Clause 19(2) states: “(2) A non-deposit-taking microfinance shall, in the course of debt collection or loan recovery (a) not harass, abuse or oppress a borrower, guarantor or any person in connection with collection or recovery of a debt; (b) not threaten or use violence or illegal means in collection or recovery of debt.” This has been very common in the boda boda business, but now we have a law. They shall not threaten or use violence or any illegal means to collect a debt. Part “(c), not use obscene or profane language to a borrower, guarantor, or any person in connection with the collection or recovery of a debt.” We are simply creating order in an otherwise disorderly sector. We want to create order. We want Kenyans to have confidence. It is not a crime to get a loan…."
}