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{
    "id": 235992,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/235992/?format=api",
    "text_counter": 309,
    "type": "speech",
    "speaker_name": "Prof. Olweny",
    "speaker_title": "",
    "speaker": {
        "id": 122,
        "legal_name": "Patrick Ayiecho Olweny",
        "slug": "patrick-olweny"
    },
    "content": "Mr. Temporary Deputy Speaker, Sir, one problem with the microfinance institutions is that their interest rates are too high. That is also scaring to the people who want to do business with them. That is an issue that needs to be addressed. They should bring down the interest rates, particularly if they are to help the small business operators. Mr. Temporary Deputy Speaker, Sir, by regularising the microfinance institutions, I hope it will help us solve the problem of illegal lenders in the name of shylocks who are looting people's money left and right. They give you a little money and in two days that money is doubled. When it gets to the end of the month, that money is increased ten times. That has been a major problem. People who have financial problems go to some of these illegal lenders who at the end of the day take their household goods. Mr. Temporary Deputy Speaker, Sir, we have a few organisations which also call November 8, 2006 PARLIAMENTARY DEBATES 3537 themselves microfinance institutions. But they do not operate that smoothly. I have seen a few trying to penetrate my constituency. But when you look at the way they operate, they are actually out to exploit the small business people and the farmers. So, this Bill will help bring sanity into this sub-sector which is developing very fast. The microfinance institutions have one advantage in that before they give out their money to their clients, they come out and train them on how to manage the money and how to run their businesses. That is what we do not have in mainstream banks which simply give you money and you are out there on your own; sometimes you have not even managed Kshs500,000, and yet you are supposed to manage it and pay it back with interest. That is why people end up losing everything out there and then the banks come for your neck. So, the microfinance institutions go out to the people and train and dialogue with them on how to handle that money. That makes these institutions have a great potential for developing our country, and that is one of the reasons I support the Bill. With those remarks, I beg to support."
}