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{
    "id": 327035,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/327035/?format=api",
    "text_counter": 773,
    "type": "speech",
    "speaker_name": "Mr. Kimunya",
    "speaker_title": "The Minister for Transport",
    "speaker": {
        "id": 174,
        "legal_name": "Amos Muhinga Kimunya",
        "slug": "amos-kimunya"
    },
    "content": " Mr. Temporary Deputy Chairman, Sir, as I said, the intention may be good but the execution of that intention - when done in law and done wrongly - could have some repercussions that we will not control. For example, if you control the interest rate that can be charged on the Women Enterprise Development Fund, you are saying that if we give you so much money, you should lend it at this. When you say that an institution that has Government shareholding can only lend at 4 per cent, you are basically saying that all the money that you receive from everybody including the deposit that you are paying for a certain premium, you can only lend it out at 4 per cent above the Central Bank of Kenya rate. However, all the other banks which are in competition with that bank can lend at whatever amount. What does that mean? That means that when you cap it at 4 per cent above the Central Bank of Kenya rate, it will not attract deposits. So, you are basically saying that everyone else should bank with the other banks and the Government should bank with its own banks. This is a very dangerous thing to do. We are also sending a signal to the investing community that we are now reversing all the gains we have made in terms of promoting Kenya as the investment destination of choice and as the financial centre of East and Central Africa and basically telling everyone to go to Uganda or Tanzania. This is very dangerous. I would like to urge this Committee that we do not go this route until this matter has been processed properly and so that we can see the implications because we will kill the funding for the National Social Security Fund which has invested heavily in the National Bank of Kenya. You will also kill 78 per cent of the shareholders in the Kenya Commercial Bank. I beg that we all oppose this amendment."
}