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{
    "id": 235983,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/235983/?format=api",
    "text_counter": 300,
    "type": "speech",
    "speaker_name": "Mr. Munyao",
    "speaker_title": "The Minister for Livestock and Fisheries Development",
    "speaker": {
        "id": 279,
        "legal_name": "Joseph Konzolo Munyao",
        "slug": "joseph-munyao"
    },
    "content": " Thank you, Mr. Temporary Deputy Speaker, Sir, for giving me this chance to laud the Minister and the Committee on Finance, Planning and Trade, chaired by Dr. Oburu, for working on this Bill. This Bill has come at the right time when Kenyans are now realising that they must work hard. They will need support to be able to achieve what they are doing. Mr. Wetangula and Dr. Oburu cited examples of what they know. I will also give an example of a lady who lives in Parklands. She started by borrowing Ksh300 from microfinance institution to start a business. Today, because of the period which she has traded, the banks have trusted her to the extent that she can access up to Kshs3 million from them without any security. Mr. Temporary Deputy Speaker, Sir, in banking what you need is trust. These microfinancing institutions, which have been operating unregulated, are now going to work properly. In fact, I was a little bit concerned earlier on because of SACCOs. SACCOs hold more money than some banks. However, there has not been a particular regulatory body or Act for them. Therefore, after this Act comes into operation, we are all going to be safe. Mr. Temporary Deputy Speaker, Sir, at one time I served in a bank and I knew that one of the things you needed was to be perceived as being trustworthy. This is particularly so when you are a cashier. Imagine somebody carrying Kshs1 million and depositing it with a bearded person who smells of alcohol. One would think that such a person is going to do other things. Therefore, trust and image are very important. I am saying this to bring out the point about trust. This is needed more in microfinancing institutions whose requirements for security would not be as stringent as those of ordinary banks. Mr. Temporary Deputy Speaker, Sir, today your age and my age allow us to have title deeds to pieces of land. Your children and grandchildren will not have any title deeds, because land is not increasing yet the population is. What shall they be securing loans with? Loans will have to be secured with ideas. A project paper that you prepare is what will be presented to banks, which will have to accept it and trust that you can turn what you are saying into something. They will not need securities such as land title deeds. Having said that and seen the amount of work being done--- I know that the Departmental Committee on Finance, Trade and Planning has spent time looking at the Bill, which is good. It is great and there has been a lot of interest. I know it has given a lot of thought to all the amendments it will bring before this House. I am only concerned with one point which was raised by an earlier speaker. I am sure the Minister, who is qualified in banking, will appreciate amendments. Surely Kshs60 million to start a bank is a lot of money. Is he not putting us into more problems? How many people will be required to collect Kshs60 million in order to start a bank? Please, Mr. Minister, I know you are considerate and will listen to appeals made to you. Listen to this serious appeal. Kshs60 million is too much. Could you reduce the amount required to start a bank?"
}