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{
    "id": 494411,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/494411/?format=api",
    "text_counter": 240,
    "type": "speech",
    "speaker_name": "Hon. Nyenze",
    "speaker_title": "",
    "speaker": {
        "id": 1987,
        "legal_name": "Francis Mwanzia Nyenze (Deceased)",
        "slug": "francis-mwanzia-nyenze"
    },
    "content": "economy where insolvent companies are either resuscitated or liquidated. There are two ways just as I have said, Uchumi was resuscitated and it is doing very well today. You can allow it to die by liquidating it. If you look at the biggest economy on the globe, which is the United States of America, when they had crisis and their companies and corporations were facing financial crisis, their government came to their rescue. They pumped in money and they never went under. In economies like Greece, where the Government never put in so much money, today, there is a lot of suffering. I want to say that, the strict rules governing insolvency in part two, will weed out those who acted as receivers and liquidators and ended up running down companies so that they could acquire their assets. I also want to say that we need regular reports of the activities of all insolvency practitioners because they are the ones who do this, so that they do not keep these companies in perpetual receivership. When you look at most receivers in this country, they like keeping the companies in perpetual receivership. The reason is to loot those companies in the pretext of making some money to pay back the owners and the shareholders. Valuation of assets of companies and insolvency will now be done professionally and this will prevent cases where assets are sold at throw-away prices thus making the shareholders suffer loses. I want to say that the Kenyan economy has been rebased and we have been told that our economy has grown bigger than that of Egypt and Libya. The biggest economies are Nigeria, South Africa, Algeria, Ethiopia and Morocco. However, this rebasing has not ejected new money which could help us in credit worthiness as we operate internationally in the global market. It will not put food on the tables of Kenyans. I want to say that because of the difficulties Kenyans face when borrowing money, the likes of shylocks--- Hon. Members will agree with me that in every constituency, there are so many shylocks offering money with high interest rates. There are also financial institutions that have come up to take the places of banks and they are also offering credit at very high interest rates. When you offer credit at very high interest rates and you borrow money which is very expensive, that is where insolvency comes in because repayment becomes difficult and there is likelihood of creditors losing their money in those companies. If in this Bill we introduce some amendments whereby we make credit easily available to Kenyan youth and women, then the rate of default will reduce and the economy will take off. At the moment, many Kenyans do not have bank accounts and those who do big business like my friend, hon. Musimba, borrow money at very high costs and their businesses do not grow as fast as they would wish them to."
}