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{
    "id": 1511245,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1511245/?format=api",
    "text_counter": 321,
    "type": "speech",
    "speaker_name": "Kesses, UDA",
    "speaker_title": "Hon. Julius Rutto",
    "speaker": null,
    "content": "ones which lend money and credit guarantee businesses. A couple of months ago, we had a case where there were complaints from the boda boda sector. They secure facilities and are given boda bodas. Then, they end up paying it with a huge interest. If you sum the total cost, which is the principal and interest, it surpasses the principal cost and the minimum interest provided by the CBK. This is because they are not regulated. The interest they charge is not regulated. Therefore, they end up killing and taking advantage of Kenyans. They borrow because of the perceived kind of flexibility in this sector. The cost of acquiring that facility or credit becomes too high in the long run. If you look at how Kenyans secure these assets, they come wailing or crying. They took facilities or boda bodas and paid more than their cash prices in the market. Towards the end of completing the payment, when you fail to repay the money, they collect that asset, disregarding the amount of money you have given them. If you look at the registration, there is no provision for joint registration of that particular asset. This amendment gives leeway to the Central Bank of Kenya to ensure those lenders are regulated and licensed. This will sanitise the sector and ensure the protection of Kenyans engaged in small-scale activities, as well as the boda boda young men and women, allowing them to trade and operate safely within their economy. Lastly, we welcome the introduction of penalties for non-compliance. We have seen some individuals conducting business with laxity, but with the CBK stepping in to enforce penalties, compliance will be encouraged, and order and sanity in the sector will be maintained. In the long run, Kenyans stand to benefit from their businesses."
}