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{
    "id": 431105,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/431105/?format=api",
    "text_counter": 378,
    "type": "speech",
    "speaker_name": "Hon. Dawood",
    "speaker_title": "",
    "speaker": {
        "id": 2572,
        "legal_name": "Abdul Rahim Dawood",
        "slug": "abdul-rahim-dawood"
    },
    "content": "“An agreement to obtain a loan by a national Government entity maybe amended from time to time.” I think what is said is duplicated or negated by what is there. The other thing is that we need the sovereign bond very much, so that we do not crowd the domestic market. What happens is that when there is not enough money the Government needs to borrow; if it borrows locally the interest rates go up. It crowds out entrepreneurs who want to borrow money and the interest rates go up and nobody benefits. This is because when people borrow from overseas they pay two to three per cent, whereas our entrepreneurs in Kenya pay up to 25 per cent interest. I am glad that the Deputy President has taken it up and said that banks should reduce interest rates. I remember when we were with the International Monetary Fund (IMF) Director, Ms. Lagarde, at County Hall, I mentioned that we needed to reduce interest rates and cap them. However, they were not ready to listen to that and one of the local representatives of the IMF said: “No. You should come and see me because I do not think we need to reduce interest rates or we curtail the bank operations.” I think that is not the right way to go. We need to put the banks on the spot. We need to say that this thing should stop. The exploitation of Kenyan citizens has to stop and the difference between deposit and lending rates should be at a minimum of four per cent. Right now the difference is more than 16 per cent. Sometimes it even goes to 20 per cent. The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}