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{
    "id": 246900,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/246900/?format=api",
    "text_counter": 227,
    "type": "speech",
    "speaker_name": "Mr. Muriithi",
    "speaker_title": "",
    "speaker": {
        "id": 230,
        "legal_name": "Peter Gichohi Muriithi",
        "slug": "peter-muriithi"
    },
    "content": "Thank you, Mr. Temporary Deputy Speaker, Sir, for giving me an opportunity to support this Motion. This Motion comes in at a time when Kenyans are looking at alternative ways of investing. This is evident from the rush which was there for the KenGen shares offer. It is quite unfortunate that the Government has cautioned this House not to support this very important Motion. The Government is unable to control many organisations in this country. That is why the Uchumi chain of supermarkets went under only for Kenyans to lose millions of shillings. I do not understand why the Government feels that the Kenya Post Office Savings Bank (KPOSB) should not be converted into a full banking facility to enable Kenyans have easy access to various facilities. What the Minister has said is totally colonial and outdated. We should liberalise all the sectors of our economy, including the KPOSB. Mr. Temporary Deputy Speaker, Sir, when the KPOSB was started by the colonial government, it denied our people access to loans. This opened abuse by major banks in this country. The trend continues. If a farmer, for example, goes to Barclays Bank to borrow some money, he or she will be asked for a six-month savings record. Where do they expect a man or a woman who has been saving with the KPOSB to produce a statement from? The major banks do not accept the savings books from the KPOSB because they want to see how an individual operates his or her account. We must allow customers of the KPOSB to operate current accounts. Mr. Temporary Deputy Speaker, Sir, major banks are pulling out of some areas of this country. If you visit Garissa District, for example, you cannot find a bank. Kenyans are being abused by Shylocks who charge up to 30 per cent and 40 per cent on the principal amount. These Shylocks also request for security in the form of a house, car and so on. The house, for example, may finally be sold if money borrowed is not paid. Mr. Temporary Deputy Speaker, Sir, the Minister told us that the money held by the KPOSB is with the Central Bank of Kenya (CBK). We are aware that the CBK is giving 7.5 per cent on a 90-day Treasury Bill. I would like to ask the Minister, how much of that interest is given back to the savers of the KPOSB? I am aware that they only give 3 per cent to the savers. What happens to the balance? Mr. Temporary Deputy Speaker, Sir, customers of the KPOSB must be given an opportunity to look after their own savings. What is the injection of the Government in the KPOSB? What is its equity? The total equity belongs to the two million Kenyans and they must be given an opportunity to run their affairs and also be appointed members of the board. It is not for the Government to sit and say: \"This ought to be done and then it turns out to be another Uchumi saga.\" Mr. Temporary Deputy Speaker, Sir, if we have a savings account in a major bank, we pay a fee for every service. If we are saving, for example, Kshs1,000, we will pay Kshs5 or Kshs20 for that facility. The banks also lend out that money at between 11 per cent and 25 per cent. Why should they lend out our saved money? That is why conversion of the KPOSB is important so that Kenyans are not squeezed and swallowed by the big sharks. Mr. Temporary Deputy Speaker, Sir, you will realise that the Jua Kali sector has very many savers. These people must be given an opportunity to use their money and not for someone to say, for example: \"We are putting the money to invest in KenGen shares on behalf of the savers.\" They should have an opportunity to supervise their own savings. Mr. Temporary Deputy Speaker, Sir, if Kenyans are requested to buy shares of a certain company, we normally see long queues. The Consolidated Bank of Kenya (CBK), for example, is not owned by the Government. It was taken up from Kenyans by the Government. It should revert back to its original owners. The Government does not have any equity in the said bank. June 14, 2006 PARLIAMENTARY DEBATES 1349 Mr. Temporary Deputy Speaker, Sir, with those few remarks, I beg to support the Motion."
}