{"id":804919,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/804919/?format=json","text_counter":197,"type":"other","speaker_name":"","speaker_title":"","speaker":null,"content":"potential to play a critical role, particularly, in providing local currency financing for PPP projects, thereby significantly de-risking projects from foreign currency funded exposure. To create a more robust framework for the implementation of PPP projects, the Government intends to revamp the PPP Unit with the aim of speeding up the pace of project preparatory activities, while being mindful of the need to ensure projects are well prepared, and all considerations required by law are taken into account. In this regard, we have completed a review of the PPP ecosystem and undertaken a legal audit of the PPP Act 2013. This work informed the need for amendments to various statutes which are before this august House. The proposed amendments focus on land acquisition and reduction of the bureaucracy associated with the PPP project development. We shall also be undertaking administrative actions aimed at speeding up project turn-around times. These include establishing shortlists of advisory services providers, standardizing project documents and resourcing the capacity of the PPP Unit to deliver on its mandate. Next week, I shall be launching the PPP Disclosure Portal which is an online platform through which all stakeholders can access all Kenyan PPP data. This is our commitment under the Access to Information Act, 2016, and a demonstration of our willingness to remain accountable to the people of Kenya for the efficient utilization of their resources for their benefit. Let me now turn to the Financial Sector. The Government continues to implement measures and reforms aimed at further deepening and strengthening the financial sector. As a result, the Kenyan financial sector has witnessed an upward growth trajectory over the last seven years, with the proportion of the adult population having access to formal financial services increasing from 66.9 per cent in 2013 to 75.3 per cent in 2016. The efficiency of the financial sector has also generally been on an upward trend over the last ten years; mainly driven by innovative financial service delivery channels introduced by the players. Similarly, financial stability has been boosted by enhanced credit risk management systems as well as improved economic conditions. However, lending to private sector and enterprises in Kenya has had mixed results over the last two years. You recall that in August 2016, the National Assembly sought to address the public concerns about the high cost of credit through the Banking (Amendment) Act, 2016, which imposed a maximum rate of interest for all types of credit offered by banks, as well as a minimum rate of interest on interest earning deposit accounts. The interest rate ceiling has contributed to slow growth in credit to the private sector, and especially to Micro, Small and Medium Enterprises (MSMEs), in the agriculture and trade sectors. Moreover, the aim of the amendment which was to expand access to financial services and increase return on savings has not been achieved since banks have shied away from borrowers they consider riskier and are priced above the maximum lending rate. At the same time, they have concentrated on either building non-interest earning deposit accounts or reclassifying interest earning deposit accounts to transaction accounts which do not earn interest. As a result, financial access and economic growth has been adversely impacted. In this regard, the Government is putting in place a package of reforms aimed at optimizing lending to the private sector while, at the same time, encouraging innovation in the financial sector in Kenya. Let me detail some of the initiatives that we are undertaking to address the above challenges in our efforts to have a fair, transparent, competitive, efficient and accessible credit market to serve the needs of wananchi . In order to enhance access to affordable credit to Micro, Small and Medium Enterprises (MSMEs) which are regarded as high risk borrowers, the The electronic version of the Official Hansard Report is for information purposes only. Acertified version of this Report can be obtained from the Hansard Editor."}