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{
    "id": 632527,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/632527/?format=api",
    "text_counter": 234,
    "type": "speech",
    "speaker_name": "Hon. Bowen",
    "speaker_title": "",
    "speaker": {
        "id": 2256,
        "legal_name": "David Kangongo Bowen",
        "slug": "david-kangongo-bowen"
    },
    "content": "I heard two Members refer to him as Member for Kiambaa. Hon. Temporary Deputy Speaker, regulating interest rates is important for the small business community in our country. Many people have suffered and have even had their property sold because of the high interest rates. Suppliers have gone to banks with Local Service Order (LSO) and Local Purchase Order (LPO) to get financing facilities. After giving out collateral, you borrow the loan at an interest rate of 10 per cent, but after 10 days, it shoots to 25 per cent. The collateral given to the bank might be your land, cow or sheep. An increase of 15 per cent is a lot. You have an LPO or LSO from the Government, which takes a whole year to pay you. The interest rate goes up and the only cow or sheep you have is taken by the bank to sell because you cannot service the loan. We have a role as Members of Parliament to make laws which manage businesses or create a conducive environment for investors in Kenya. I would like to thank the Member for coming up with this Bill. Recently, the CBK published interest rates charged by the various banks in the country. It was surprising to see banks that were charging up to 28 per cent. This is very serious. Recently, the CBK came up with a new regulation that you cannot withdraw or deposit Kshs1million without an explanation. Again, there is a new regulation from the CBK that if you are withdrawing or depositing Kshs1milllion, you have to explain where you got it from and how you want to spend it. That is a very unnecessary regulation. Even if it is meant to curb money laundering, it should not be that case. I am a farmer. I have so many cows on my farm. When I sell 50 cows, I can get Kshs1 million. Do you want me to tell you that I sold my cows and I want to spend some of the money on schools fees for my children? That is unnecessary. We have an institution called the Banking Fraud Unit. What is their work? The work is to investigate where this money is coming from and where it is going. Apart from that, we have seen foreigners obtaining money from countries that charge low interest rates and coming to Kenya. They invest at 25 per cent and make money. Kenyans are exploited. If we pass this Bill, it is going to help many Kenyans especially business persons. It is going to help the youth and women in the rural areas to access cheap credit. I support."
}