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{
    "id": 914917,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/914917/?format=api",
    "text_counter": 152,
    "type": "speech",
    "speaker_name": "West Mugirango, FORD-K",
    "speaker_title": "Hon. Vincent Kemosi",
    "speaker": {
        "id": 13508,
        "legal_name": "Vincent Kemosi Mogaka",
        "slug": "vincent-kemosi-mogaka"
    },
    "content": " Thank you, Hon. Temporary Deputy Speaker. I also rise to support this important proposed amendment Bill for several reasons. I have been a student of contract law both at the University and in Law School. I clearly understand the burden several guarantors have been undergoing in this country. This provision of the guarantor coming in to stand for the principal debtor is not a new provision. It dates back to the year 1867. On several occasions, the courts have held it differently when it comes to guaranteeing the principal debtor. They have never shied from attaching the assets of the guarantors. This proposed amendment is important because it gives a provision that in case of default by the principal borrower, the creditor should first realise the assets of the principal borrower before proceeding to court to recover from the assets of the guarantor. It should be noted that the law, as it stands today, does not have that provision. Therefore, the Hon. Member who has brought this Bill is well guided. If this provision is passed by this House, and I am sure it will, it will give peace to innocent guarantors who have been undergoing the burden of paying the amount that has been advanced to the principal debtors. Some of the principal debtors do not borrow money for good use. Some of them borrow to marry more women, travel abroad and such issues. When it comes to recovery, those people are unable to repay. This is where all the money is recovered from an innocent guarantor. It is, therefore, important that the principal debtor is held liable. If the principal debtor has taken a loan, the lending institutions should first recover from his assets before proceeding to recover from the guarantor. This norm is all over in the Republic of Kenya. Where I come from, not only teachers, but innocent public servants and those working in the private sector, have been made to undergo a punishment that is not theirs. They have been made to pay for the debts that they never incurred; loans they never took. You should also know that some financial institutions are recovering the amounts defaulted from the accounts of the guarantors without following the due process of the law. This is an illegality from the beginning."
}