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{
    "id": 235988,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/235988/?format=api",
    "text_counter": 305,
    "type": "speech",
    "speaker_name": "Mr. Kimeto",
    "speaker_title": "",
    "speaker": {
        "id": 351,
        "legal_name": "Anthony Kimeto",
        "slug": "anthony-kimeto"
    },
    "content": "Mr. Temporary Deputy Speaker, Sir, I would like to thank the Minister who brought this Bill to this House. However, the required amount of Kshs60 million to start a bank is too much for rural people. Mr. Temporary Deputy Speaker, Sir, if microfinance institutions will only help businessmen with large sums of money, then people who sell eggs will not survive in this country. \"Micro\" means very small and these institutions should lend money to very small business units. We should license microfinance institutions to operate with even Kshs200,000, so that they can 3534 PARLIAMENTARY DEBATES November 8, 2006 lend money to small businessmen. Small businesses support a lot of people. Majority of Kenyans survive through selling goats and cattle. If we set the minimum capital at Kshs60 million, we will kill the spirit of microfinance institutions. Anybody who wants to lend money to people should be licensed to do so. We should let the lenders to put their limitations depending on how much money they can afford to lend. If we license many microfinance institutions, the big banks will reduce their interest rates. They will also start to lend money to the microfinance institutions. I would like to ask the Minister to reduce the minimum capital from Kshs60 million to even about Kshs2 million. This will enable many Kenyans to start microfinance institutions even in North Eastern Province where there are only camels. People should be allowed to even lend animals to others. For example, camel keepers should be allowed to lend their camels to others. Cattle, goats and sheep keepers can lend their animals to other people. Anybody who has something should lend it to other people, so that we can assist each other. We should not always be thinking about money. Mr. Temporary Deputy Speaker, Sir, very few people among us can afford Kshs60 million. Maybe the Minister for Finance could be having such kind of money because he knows the ways and means of arriving at such a figure. We are indebted to the neck through mortgages. Where can we get Kshs60 million to lend to people? We are expected to be the chief lenders in our constituencies. We are even lending money to our constituents without asking for any interest. I would like to request the Minister to amend this section in order to encourage many people to start microfinance institutions. This is a good Bill. However, we need to protect the depositors. The people who looted our banks are enjoying themselves while those who have stolen eggs are rotting in jail. These people should be charged in a court of law. The Government should ensure that the depositors' money is protected. We should have a lot of security personnel in every part of the country. If we can improve security in our country, more investors will come to invest here. Our people will also go to invest in other regions in East Africa. We should improve security in our country to enable the blossoming microfinance institutions to thrive. The Government should borrow money from external donors and then lend it to microfinance institutions. It should lend long-term loans to these microfinance institutions, so that they can grow. Without such loans, it will be very difficult for the institutions to grow. We might start them and then they collapse due to lack of funds. If this is done, microfinance institutions will be blossoming very soon in this country. We should make our people self-reliant through advancing them long-term loans at very low interest rates. Most of the people who borrowed money from commercial banks are now very poor people because of high interest rates. If microfinance institutions will give loans at high interest rates, this Bill will not achieve the intended purpose of enriching the people. I would like to thank you for giving me the opportunity to contribute to this Bill. With those few remarks, I beg to support."
}