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{
    "id": 644491,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/644491/?format=api",
    "text_counter": 59,
    "type": "speech",
    "speaker_name": "Hon. Ichung’wah",
    "speaker_title": "",
    "speaker": {
        "id": 1835,
        "legal_name": "Anthony Kimani Ichung'Wah",
        "slug": "anthony-kimani-ichungwah"
    },
    "content": "Thank you, Hon. Deputy Speaker. I also rise to support this Bill. As has been said by many contributors to this debate, there are many emerging issues besides interest rates. The very exorbitant interest rates charged by banks have stifled the growth of businesses in this country. But more worrying is the fact that the interests these banks are paying to individual depositors of banks are not just low but are ridiculously low. More worrying is the fact it is not just individual depositors’ funds. We have seen very unfortunate situations where many of these banks take deposits from the public sector especially parastatals. Those of us who sit in Public Investments Committee and Public Accounts Committee will testify that many of our Government agencies and departments are putting huge deposits in these banks. Since they are not expected, under the Public Finance Management (PFM) Act, to put deposits in banks, the banks are paying, in certain circumstances, no interest at all. It is this money they move to lend to businesses at very high interest rates. It is the same business people who have contributed this money in taxes. We have seen cases of Chase Bank, the NBK and Dubai Bank. At least, for two of those banks that have collapsed in the recent past, I am certain that one may not have collapsed like the NBK. As has been said by some Members here, they hold very huge deposits of public assets and public funds. The NSSF has huge deposits in the NBK. I know of a number of other private banks that may not be very stable but are holding huge deposits from our parastatals. Maybe these are some of the issues that Members of this House and those in the Executive need to look at to ensure that provisions of the PFM Act and the National Treasury regulations regarding investments of deposits of public funds are clearly adhered to."
}