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"id": 273041,
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"speaker_name": "Mr. Keynan",
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"speaker": {
"id": 41,
"legal_name": "Adan Wehliye Keynan",
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"content": "Mr. Temporary Deputy Speaker, Sir, having said that, I would also want to say that this report was meant to act as a wake-up call and as a deterrent. The use of interest regime in any country whether developing, under-developed or undeveloped is a tool for the Executive to protect the public interest. That is why today, the changing dynamics of interest regimes in developed countries and in particular, big economies like the USA is determined almost on a monthly basis. Therefore, this is a fundamental economic issue that if we have to excel, develop and prosper as a country, as enshrined in Vision 2030, socially, politically and economically, we cannot do that with high interest rates. I want to refer hon. Members to one of the pillars of Vision 2030 which is economic development. The key fundamental role in the economic development under the macro-economics is low interest rates. With interest rates as high as 30 per cent, you can imagine the predicament of the farmers, middle income Kenyans, business community, the general Kenyan public and, by extension, that of the entire East African Community (EAC) citizens. That is because the Kenyan economy constitutes 67 per cent of the Gross Domestic Product (GDP) of the combined EAC. That is why I always say that Kenya is a premier nation. This premier nation must be protected, projected and promoted at all levels, including at our level as Members of Parliament. Having said that, there are a number of issues I want to highlight. In the Report, we mentioned five fundamental issues. One of them was how to bring the interest rates down to a manageable level. I also acknowledge that this is a liberalized economy and, therefore, that does not take away their responsibility. If there was no need for oversight or regulatory functions, we would not have had a Minister for Finance. We would have said that you can manage yourselves. We would not have had the Banking Act and the Central Bank (CBK) Act. That, therefore, means that the planners or designers of the rule of law in their own wisdom knew that as much as you give with one hand, you must have somebody else to regulate. That is why I want to commend the Minister for Finance. I think he has started doing his job ably. We look forward to doing more because this is the time that this country requires a person who will be around and take into account all the emerging issues, so that we can take this country through the transitional period constitutionally and election-wise. I do not want to bore my colleagues with the issues I raised when I moved this Motion. However, I want the Minister to reflect on the recommendations on the monetary policy, the recommendations that we have put in the fiscal policy, the recommendations on the oversight role of the CBK on financial institutions and on the raft of amendments we have suggested on the CBK Act, the Banking Act and the Financial Services Act. If all that is done--- I want the Minister to look at the contents of Section 44 of the Banking Act which brought about the application of the In Duplum Rule. This was a product and again, because the Minister is serving in the Government of none other than President Mwai Kibaki, I want him to refer him to what the President said during his contribution when he was the Leader of Official Opposition in 1999 on the Donde Bill, and how the issue of application and legislation on the In Duplum Rule came about. We want this rule to apply to both performing and non-performing loans so that ordinary wananchi are protected from the ever increasing interest rates. With those few remarks, I beg to move that this Report be adopted."
}