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{
    "id": 507021,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/507021/?format=api",
    "text_counter": 374,
    "type": "speech",
    "speaker_name": "Hon. Waweru",
    "speaker_title": "",
    "speaker": {
        "id": 1378,
        "legal_name": "Dennis Kariuki Waweru",
        "slug": "dennis-kariuki-waweru"
    },
    "content": "have been taking deposits from our own money at 2 per cent - I will be allowed to call them brokers – and lend the same money to the same people at an interest of 19 per cent, and to the Government at an interest rate of 12 to 15 per cent. I have a lot of difficulties visualizing the Central Bank of Kenya (CBK) borrowing money on behalf of our Government. I find it criminal to pay interest in the region of 12 to 15 per cent of money which they could have otherwise gotten at an interest rate of less than 5 or 6 per cent. This is a very good Bill and I want to outline its benefits. Number one, it will enable the majority of low-income earners to channel their savings, by elimination of these brokers, through the Government of Kenya. It will help to greatly reduce the impact of high inflation compared to putting the money in banks. It will also help the Government reduce the risk of consumer power where large financial institutions and cartels dictate at what interest rate we borrow. That is a very important thing because we will be going directly to the investor and getting the money at very competitive rates. It will also allow the Government to come up with a real curve that will enable it to offer even longer tenure debts. This will make our market vibrant and promote the saving culture. It is very important for us to recognise that we need to mobilise a lot of resources to be able to finance most of our development needs. However, we have had a situation where, for instance, if you try to invest in Government securities at CBK, you find they will insist on seeing you physically because they are still in the old days. They are analogue. You find they will tell you: “Come here in person for you to open a CDS account to invest.” This is happening when we have had innovation in technology. All products that should be there going forward should be phone-based. The CBK which is our agent is still in the old days and that is affecting the cost of money, the saving culture in our country and creating another class of investors who stand to benefit more than the ordinary mwananchi who takes money to our financial institutions at an interest rate of 2 per cent. Those characters I call ‘Shylocks’ put the money together and take it to the CBK. That is very unfair to the Kenyan public. That is increasing income disparity and it should be corrected immediately. I am supporting hon. Kabando because we need to move forward and use technology innovation to get this country to the next level."
}