Entry Instance

HTTP 200 OK
Allow: GET, PUT, PATCH, DELETE, HEAD, OPTIONS
Content-Type: application/json
Vary: Accept

{
    "id": 632497,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/632497/?format=api",
    "text_counter": 204,
    "type": "speech",
    "speaker_name": "Hon. (Eng.) Mahamud",
    "speaker_title": "",
    "speaker": {
        "id": 373,
        "legal_name": "Mohammed Maalim Mahamud",
        "slug": "mohammed-mahamud"
    },
    "content": "Thank you, Hon. Temporary Deputy Speaker. Let me join my colleagues in congratulating Hon. Jude Njomo for bringing this Bill. In Kenya, the only enterprises that are making profits are banks. Year in, year out, banks declare huge profits and the rest of Kenyans are very poor. There is something wrong. Banks normally compete for customers, but when it comes to interest rates, they collude and ensure that interest rates are not controlled. If anybody wants to propose any change, they oppose it like what happened to the Donde Bill in 2000. Although the law was enacted, it cannot be implemented because of the numerous litigations that were put up by the banks. That is why nothing is happening. For Kenya to develop, people must borrow from banks, so that they can develop and get involved in meaningful business. However, if interest rates are high, it is difficult for people to borrow money. Our Government also borrows from commercial banks and this creates a lot of demand for money. That is why interest rates are high. It is high time the Government stopped borrowing from commercial banks. In fact, the Governments needs to cooperate with banks, so that funds like the Youth Enterprise Development Fund and the Uwezo Fund are channeled through banks and people can borrow from there instead of institutions using that money. The Government should limit its borrowing from pension funds like the National Social Security Fund (NSSF) instead of borrowing from commercial banks. Our interest rates and mortgage prices are very high. Paying back is a problem and that is why we have a lot of bad loans and people’s properties are auctioned. Apart from Safaricom, the people who make profits in this country are banks. Where do they get their money from? It is money of the people who are very poor. It is important that the Central Bank of Kenya (CBK) reins in these banks so that we have rates that are affordable to Kenyans. Our interest rates are almost the highest in the world. In many economies, interest rates are just one digit. Ours is very high and we as Parliamentarians and people’s representatives must take the lead. In the last Parliament when Hon. Jakoyo Midiwo brought this Bill and an amendment similar to what Hon. Njomo is bringing, it was defeated because banks interfered with us. Members of Parliament shouted going left and right and that Bill just went underground. 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."
}