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"id": 246899,
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"type": "speech",
"speaker_name": "Mr. Kipchumba",
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"speaker": {
"id": 313,
"legal_name": "Joseph Kipchumba Lagat",
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"content": "Mr. Temporary Deputy Speaker, Sir, I would like to support this very important Motion. I would like to thank hon. Oloo-Aringo for bringing this very important Motion. The Kenya Post Office Savings Bank has done a very good job. It is only unfortunate that we do not seem to recognise the good job that, that institution has done. When many of us were in school, it was the only institution that could accept our little pocket money. When you have money, you must keep it safe somewhere. The only place where you could keep your money safely was the Kenya Post Office Savings Bank. Commercial banks could not accept our Kshs100 or Kshs200 that was sent to us by our parents or guardians. In that spirit, there are so many Kenyans who receive money, not necessarily on a regular basis, but once in a while when they have done some businesses. It will be very difficult to expect that this country will develop by assisting only the corporate sector or the rich people of this country. Mr. Temporary Deputy Speaker, Sir, we all talk about poverty alleviation. But how do we talk about that when we have a growth rate of 5.8 per cent which is unevenly distributed? You cannot talk about development without ensuring equal distribution of resources to each and every person. The Minister has said that if you save money and lend, you are engaging in very risky business. Everything in this world is a risk! Even the money that is saved is also a risk. The only people in this country who borrow money with an intension of paying back are the small, poor business people. Mr. Temporary Deputy Speaker, Sir, the problems that exist in many financial institutions, especially banks, are as a result of the rich and mighty in this country. They borrow money knowing very well that they will not repay at whatever cost. The problems in National Bank of Kenya (NBK), Kenya Commercial Bank (KCB) and other financial institution are caused by politically-correct people. They borrow money without any intention of repaying. There are people who borrowed money from Kenya Post Office Savings Bank. They are the same politically-correct people. They borrowed the money without any intention of repaying. If you look at the records of poor people, they borrow and pay back. They only fail to pay because of reasons beyond their control. Nobody saves for the sake of it. People save money with an intention of borrowing in the future to expand their businesses. Thereafter, they repay back the money. Kenya Post Office Savings Bank has structures that exist all over the country. All we need to do is activate the lending section. We have talked about the micro-enterprise sector in this country. That sector is doing so well. Every year, Barclays Bank of Kenya, Standard Chartered Bank and others banks make billions of shillings. In fact, if you look at the records of Barclays Bank of Kenya, it declares the highest profits compared to its other branches in the whole world! It is immoral for those big banks to rob Kenyans and repatriate the profits to their countries. It is time the Government introduced a June 14, 2006 PARLIAMENTARY DEBATES 1347 law to ensure that those banks do not rob Kenyans. If the Gross Domestic Product (GDP) of this country is probably 120th of that of Britain, and Kenya contributes the highest percentage of profit that Barclays Bank of Kenya declares, is that not a matter of concern for Kenyans? Mr. Temporary Deputy Speaker, Sir, many of us have ran away from those banks. We encourage as many Kenyans as possible to run away from those big banks. Mr. Temporary Deputy Speaker, Sir, let us assist banks which would want to re-invest money back in this country. I am happy that there are a few very good banks that are coming up. Equity Bank and Co-operative Bank of this world are doing a very good job. All the Government needs to do is to establish an institution like the Kenya Post Office Savings Bank. We are aware that the capacity in that Bank may not exist now. What is capacity? If we want capacity in the Kenya Post Office Savings tomorrow, we will have it. Kenya is the only country in the region that cannot lack capacity. I think we need capacity to attract the right investments. We have trained manpower. We have Kenyans out there who are well trained and can do a very good job. Who has told us that the Kenya Post Office Savings Bank does not have capacity? Where is the study that has been done to tell us that they indeed do not have capacity? If the management cannot take the Kenya Post Office Savings Bank to the next level, bring in new management. If we have mediocre fellows that cannot transform an institution like the Kenya Post Office Savings Bank, bring in other Kenyans. They exist and they are willing to work for a pay. Mr. Temporary Deputy Speaker, Sir, I do not buy for a minute that, indeed, we should not lend because we want to take care of our savings. To save for who? The savings are there but lend out, charge interest and make more money. Common sense dictates that the only way that your savings can earn interest is by lending them out so that whoever borrows your money can repay it with little premium. That is the only way that savers of Kenya Post Office Savings Bank can indeed earn some interest on their money. If we are saying they keep the money, and I do not know where and nobody borrows it, then you will be given back the same money that you saved in that institution. It could be saved but is that the intention of any saver in this country? The intention of every saver is to double his savings at the end of every year. Therefore, in my view, Kenya Post Office Savings Post Bank has no competition because in fact, it is not going to compete with any bank. It is going to ensure that money which is kept in tills or roofs somewhere in houses finds its way into safe custody in a financial institution called the Kenya Post Office Savings Bank. Thereafter, you can borrow it, expand your business and be able to save. Due to insecurity that exists in the country currently and elsewhere, when people know that you have money in the house, they will attack you and steal the money. I have seen it in my own constituency where people sell their cows in the evening and because they are unable to reach a financial institution which is 50 or 60 kilometres, they keep their money in their houses. Thieves will come at night and steal their hard earned money. For one to sell a cow it takes about four to five years. You sell your cow which is like you have saved for five years and somebody comes and takes the money in a second. In fact, the safest way to keep one's money is to save with these institutions. If you travel everywhere in this country, you will find that there are branches of the Kenya Post Office Savings Bank in every village. Mr. Temporary Deputy Speaker, Sir, therefore, I want to agree with hon. Oloo-Aringo that indeed let us encourage people to borrow. If you go to the developed world, nobody lives on their own income. Nobody has an income. Even here in this House most of the hon. Members of Parliament are fuelling their vehicles on borrowed money. Why? Because it is very difficult to save money. If you save to the tune of Kshs1,000 and your constituent calls you that he wants his medical bill to be paid, you will remove that money and give it to him but if it is saved somewhere, you will want it to grow for some time. June 14, 2006 PARLIAMENTARY DEBATES 1348 With those few remarks, I beg to support."
}