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{
    "id": 914860,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/914860/?format=api",
    "text_counter": 95,
    "type": "speech",
    "speaker_name": "Garissa Township, JP",
    "speaker_title": "Hon. Aden Duale",
    "speaker": {
        "id": 15,
        "legal_name": "Aden Bare Duale",
        "slug": "aden-duale"
    },
    "content": " Hon. Deputy Speaker, first I want to go on record that I am moving this Bill on behalf of my very good friend and Member for Juja, Hon. Waititu, because he is not feeling well. So, we have agreed that I move it on his behalf. My colleague and Senior Counsel, Member for Tharaka, will second. Hon. Deputy Speaker, I beg to move that the Law of Contract (Amendment) Bill (National Assembly Bill No.1 of 2019) be now read a Second Time. I also want to go on record that from my religious background as a Muslim, we do not take interest. If you are Muslim and you take interest, you know the consequences both in this world and thereafter. However, as a leader, I move it on behalf of other Kenyans who, in one way or another, are affected by the law. The main objective of this Bill is to amend the Law of Contract Act, Cap.23, to provide that in case of defaulting on loan repayment, the creditor must first realise the security of the principal. I will give a home ground example. When we borrow from our Savings and Credit Cooperative Societies (SACCOs), there are Members who guarantee us. These Members have no security, but on the basis of trust, we sign for them as guarantors. If that Member defaults on loan from the SACCO, the law currently states that the SACCO goes for the assets of the guarantor in case the principal hides. Before you go to the guarantor, you should look for the assets of the principal borrower. That has been the case. There are many people out there who lose their family property because Hon. Duale, Hon. Washiali or Hon. Junet made them guarantors. They have disappeared and did not pay. You end up losing your property. This law is very important. I have received a letter from the Attorney General saying that we should wait for more discussions. No! I want to tell the Government that the legislative powers of the House lie with the 349 Members. If the Government has issues with Private Members’ Bills, it should propose amendments. You cannot step down a Private Members’ Bill. When applying for a loan from a financial institution, the institution usually requests the borrower for a guarantor. If the institution asks for a guarantor, in case the borrower’s assets cannot cover the cost of the loan, he or she goes to a friend and asks the friend to guarantee the loan from the bank or the SACCO, as requested by the institution. When this borrower defaults in the payment of the loan, that same institution, after issuing a notice to both the guarantor and the borrower, chooses which assets to recover for the loan. Most of the time they go for the assets of the guarantor. The Member for Juja is saying that the institution should not go for the guarantor. We should amend the law so that the institution goes for the principal borrower. It is a 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."
}