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{
    "id": 910357,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/910357/?format=api",
    "text_counter": 325,
    "type": "speech",
    "speaker_name": "Mr. Henry Rotich",
    "speaker_title": "The Cabinet Secretary for National Treasury",
    "speaker": {
        "id": 13142,
        "legal_name": "Henry Rotich",
        "slug": "henry-rotich"
    },
    "content": "The aim of the interest rate capping introduced in September 2016 was to reduce the cost of borrowing, increase access to credit and higher return on savings. It is now going to three years and the law has had the opposite effect with MSMEs starved of credit and the loan books of small banks becoming smaller. Hon. Speaker, you will recall in the Finance Bill, 2018, I proposed to amend the Banking (Amendment) Act, 2016 by repealing Section 33B of the Act. The proposal was motivated by the need to enhance access to credit and minimise the adverse impact of the interest rate capping on credit growth while strengthening financial access and monetary policy effectiveness. In addition, I highlighted a number of reforms that we are putting in place to optimise lending to the private sector while at the same time encouraging innovation in the financial sector in Kenya. The Central Bank of Kenya is already dealing with consumer protection issues in the banking sector. Given the challenges that MSMEs are facing in accessing credit from the banking sector and conscious of the need to spur business activities, I am in this year’s Finance Bill proposing a repeal of section 33B of the Banking Act, 2016. I am convinced this will unlock credit to 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."
}