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"id": 235989,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/235989/?format=api",
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"type": "speech",
"speaker_name": "Dr. Kibunguchy",
"speaker_title": "The Assistant Minister for Health",
"speaker": {
"id": 294,
"legal_name": "Enoch Wamalwa Kibunguchy",
"slug": "enoch-kibunguchy"
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"content": " Thank you, Mr. Temporary Deputy Speaker, Sir, for giving me this chance to add my voice to this debate. At the outset, I would like to say that I support the Bill for various reasons. First, this Bill is going to enable this country to tackle the two main problems that confront us. One of these problems is poverty. As the Minister rightly put it, now close to 60 per cent of our people live in absolute poverty. This Bill is also going to open up avenues for employment and put money in people's pockets. I would like to join my colleagues by saying that for microfinancing to benefit the people it is supposed to benefit, it must have affordable interest rates and we must lower the minimum capital. The Minister should take this very seriously. We must, as much as possible, not insist on November 8, 2006 PARLIAMENTARY DEBATES 3535 asking for security when somebody is borrowing money from the bank. The microfinance institutions should be convenient and easily accessible to the majority of our people. When you look at a place like Lugari Constituency, you see that the majority of our youths are involved in the boda boda industry, which is now a full-fledged industry. Quite a number of people are involved in making bricks, and of course we have the usual hawkers. You will find that in all these groups, whether they are made up of hawkers or boda boda operators, they will always have a mechanism of collecting money amongst their members and helping one of them often. For instance, you will find that at the end of every month, each member of a group puts aside Kshs50 and the money is given to one of them. The following month, the group does the same for another member. Merry-go-rounds are operating, virtually everywhere in this country. If we had microfinance institutions that are easily accessible, for instance, if each of our constituencies had at least one microfinance institution, it would be easy for the groups that are already established, to deposit money in the institutions rather than travelling miles to deposit small amounts of money. On the issue of minimum capital, as my colleagues have said, I am sure that the Minister will look into it so that the amount is reduced. This will make it possible for many microfinance institutions to open their doors to as many people as possible, in different parts of this country. We have to look into the issue of established financial groups which already exist in many areas. We should borrow a leaf from the person who established the Grameen Bank. Initially, people called him \"the mad professor.\" However, we know that he has been recognised for what he has done. This year, he was awarded a noble peace prize. Rather than insist on getting collaterals from people who wanted loans from banks, he insisted on lending money to groups, advocating for one group to be a co-guarantor of the other. As I have always said, we can borrow success stories from elsewhere. I would like the Minister and the Chairman of the Finance, Planning and Trade Committee, when it is time to polish up the Bill, to look into the issue of groups co-guaranteeing each other so that the issue of securities is no longer a requirement when people want to borrow money from the institutions. Mr. Temporary Deputy Speaker, Sir, I see a situation where if we had microfinance institutions in each constituency, it would be very easy for us to know where to channel the Youth Fund money. At the moment, for the Youth Fund to be meaningful and equitable, I will insist that it follows the pattern of the CDF, so that each constituency is given an equitable amount of money. If we had microfinance institutions in every constituency, it would be a wonderful and proper channel for the Youth Fund, so that it becomes easy for the youth in each constituency to access it. It is not too late to do that, because the Youth Fund will be factored in the Budget every financial year. Just as we are demanding to have a fund to cater for our women and our communities, the Youth Fund is a good idea. However, it is extremely important that each constituency gets a share of the money; an equitable share of it. Finally, as we move towards empowering and teaching our people the importance of saving money, I see a situation where small cottage industries will spring up. That is one way of creating employment in the rural areas. I will use an example of my constituency, Lugari, where I would like to see a situation where, once we have the microfinance institutions established, co-operative societies and youth polytechnics will also be revived so that we can empower our people in the rural areas and avoid situations where our people migrate to work in urban centres thinking that, that is where opportunities are found. As I conclude, I would like to say that the only aspect I am not comfortable with is the one of minimum capital. I would be happy if we retained the CBK supervision of these institutions to avoid any abuses, and people who may want to take advantage of ignorant Kenyans in the rural 3536 PARLIAMENTARY DEBATES November 8, 2006 areas. With those few remarks, I beg to support."
}