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{
    "id": 235990,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/235990/?format=api",
    "text_counter": 307,
    "type": "speech",
    "speaker_name": "Prof. Olweny",
    "speaker_title": "",
    "speaker": {
        "id": 122,
        "legal_name": "Patrick Ayiecho Olweny",
        "slug": "patrick-olweny"
    },
    "content": "Thank you, Mr. Temporary Deputy Speaker, Sir. I would like to make a few comments in support of this Bill. It is a good idea to have this Bill debated because once the law is enacted, it will help streamline the microfinance institutions which are already operating in this country. Some of them are operating well, doing good business with Kenyans. However, some of them are run by crooks and instead of helping Kenyans who run small enterprises, they exploit them. Therefore, I congratulate the Minister for having brought the Bill so that we pass it and help to boost development in this country. Microfinance institutions help in filling up the gaps where the mainstream banks have failed to perform. The banks have failed to help small timers in business; poor Kenyans who want to make it in life, because they go for the rich who can provide title deeds for securities and do business in a big way. That is not where the poor women and youth groups fall. So, microfinance institutions will help us in filling the gap where we have such problems. In terms of locality, mainstream banks are not found in villages. They are mainly found in major cities. People who run small businesses in the rural areas do not get rich because of the kind of businesses they do. In urban areas, small business operators are not capable of doing business with big banks. So, in that regard, microfinance institutions have the potential to develop rural areas when it comes to doing business, including farming, fishing and livestock trading. Recently, I took a few people from my constituency to a microfinance institution so that they can be given some money. They buy and sell livestock. They need money to do their business. The good thing about microfinance institutions as they operate today is that they do not need a lot of collaterals in terms of title deeds or whatever form. That is one thing that has scared many people. In my place, farmers are scared of going to the bank. This is because whenever they borrow money and they are not able to repay, then the land or the house is gone; whatever they put as collateral is taken away. That is where the microfinance institutions beat the banks today. The microfinance institutions also give the people opportunity to save. Many people who do small businesses, like kiosk operators or small shopkeepers, do not have the opportunity to save in the mainstream banks. To open an account in some banks, you need Kshs10,000. That is money which our people may not raise at the end of the month."
}