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{
    "id": 632392,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/632392/?format=api",
    "text_counter": 99,
    "type": "speech",
    "speaker_name": "Hon. (Prof.) Nyikal",
    "speaker_title": "",
    "speaker": {
        "id": 434,
        "legal_name": "James Nyikal",
        "slug": "james-nyikal"
    },
    "content": "savings available to those who want to venture into business so that they can create employment for people. If interest on the savings of the same people is very high that they cannot make any profits, then obviously this does not serve the country. In this country, we are struggling to create employment for the youth. We are trying to help the youth set up small business and banks have a crucial role in making this happen. That can only happen if interest rates are regulated and maintained at a level that entrepreneurs can make some money. If generation of profits becomes the main goal for banks, then we are lost. That is exploitation of people and it cannot be. If you have interest rates of 20 per cent and above, as other Members have indicated, which business will you run to make 50 or 30 per cent profit so that 20 per cent goes to the bank? It is not possible. Banks are killing businesses in this country. If some of these foreign banks were to have interest rates of 6 per cent in the countries where they are domiciled, it would be declared an emergency and something would be done. But they happily collect 20 per cent and more here. If you have a country where the only successful businesses are banks, then something is obviously wrong. We cannot run an economy whose sole purpose is to serve banks and make their profits huge. Any small activity in the banks is charged. So, it is not only interest that is the source of their profit. I have never understood – I am not a banker – why you pay for depositing money in a bank account. If you ask whether your salary has been deposited, they charge you. Anything you do in the bank is charged. In fact, the only thing banks do not charge for is the air you breathe. I am very worried that very soon banks are going to charge for even the air we breathe while in the banking halls. If banks are looking at business people as a source of profit for them and not as partners in business, then the whole system is madness and cannot help us. There have been many attempts at regulating interest rates. The Donde Bill has been referred to. Hon. Midiwo and Hon. Kabando wa Kabando have also tried. We know there is a big lobby led by the Kenya Bankers Association (KBA). The KBA, like any other association, cannot pretend that it can regulate its own business and profits, because the sole objective of the KBA is the interest of the banks. Asking the KBA to regulate interest rate is like asking hyenas to guard sheep. It will not happen. So, we must support Kenyans. This House must rise and support this Bill. The CBK Governor must come to the aid of Kenyans and protect them against exploitation by the banking system. With those remarks, Hon. Temporary Deputy Speaker, I support."
}