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{
    "id": 1511259,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1511259/?format=api",
    "text_counter": 335,
    "type": "speech",
    "speaker_name": "Molo, UDA",
    "speaker_title": "Hon. Kuria Kimani",
    "speaker": null,
    "content": "by the Central Bank of Kenya If a business lends money as a cooperative, it is regulated under the Microfinance Act. If a business operates as a bank, it is regulated under the Banking Act and the Central Bank of Kenya Act. If a business lends as a SACCO, it is regulated by the SACCO Society Regulatory Authority (SASRA). However, other lenders are non-deposit- taking creditors, so they do not fall under the Microfinance Act. They are also not digital lenders, so they do not fall under CBK regulations. That is why they have been lending money to Kenyans, where the interest rate has become higher than the principal amount. The people who have suffered the most are the boda boda riders. For instance, you may have seen individuals who take up Lipa Pole Pole boda boda loans. Once they are about to clear the loan but miss one or two instalments, their motorcycles are repossessed. When you and I take asset finance through a bank and are unable to honour an instalment or two, our cars are not towed. Unfortunately, this happens especially in the boda boda sector. The passage of this law will now bring those non-deposit-taking microfinance institutions under the purview of CBK. That is why one of the amendments you have seen in the Business Laws is also to amend the Central Bank of Kenya Act to give them that additional mandate of regulating these lenders to ensure the interest rates charged by those lenders…"
}