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{
    "id": 914967,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/914967/?format=api",
    "text_counter": 202,
    "type": "speech",
    "speaker_name": "Kilifi North, ODM",
    "speaker_title": "Hon. Owen Baya",
    "speaker": {
        "id": 13373,
        "legal_name": "Owen Yaa Baya",
        "slug": "owen-yaa-baya"
    },
    "content": "guaranteed. At the end of the day, this young person’s dream to go into business flounders on the way. Therefore, he cannot go into business. If we make it easier such that if I guarantee a young man who wants to start a business, I will not be followed to pay that loan I will be more comfortable to guarantee him. Secondly, this law places responsibility on the people who borrow so that they do not push the responsibility of the loan to the other person. If I have borrowed and I know I do not have any backup, I will work hard and use the money very well so that I can pay. The moment I know that if I default in payment someone else will pay for me, I will relax. I will take my time and not work hard. I will squander the money and say that I do not have anything to pay with because I do not have any assets and, therefore, the person who guaranteed must pay and should be followed. This has happened to many women who borrow. My friend, Hon. Omboko Milemba, singled out the Kenya Women Finance Trust (KWFT). Many women borrow from that institution and when they do so, they are told to give a guarantor. You give a list. They go to the guarantors and check what they have in their homes and list down all the assets. Sometimes those people who take loans us the money in various ways and when they are confronted with repaying, they say they have guarantors whose assets the institution listed and, therefore, should be followed. Institutions like KWFT are losing business because people know that every time I am guaranteed a loan, the person who guaranteed me will have to pay. Therefore, some of these people do not take a loan responsibility seriously because they know they have somebody backing them. Therefore, thanks to my friend, Waititu, this law that is coming in will help and make people more responsible when they take credit facilities. In the same way, the economy of this country will grow. The gross domestic product (GDP) of the small areas that people borrow from will grow because money will be put to good use. If I know that I have somebody who will back me up as a guarantor, I will not put the money to good use. When the money is not put to good use, the economy of the place does not grow. If I take a loan and invest in agriculture, the productivity of that area will benefit from that loan and, therefore, the economy of that place will grow. There have been families in this country who have been very unhappy. By the stroke of a pen, a father decides to guarantee his friend. He is happy that he is helping a friend. Woe unto him because this person will not take greater responsibility on the credit facility and squanders it. The torch comes back to spotlight the family. Spouses have split and children have blamed their fathers because they guaranteed someone. I have a case in my constituency where a father gladly gives a title deed saying that he is guaranteeing his friend. He says that the person is his friend and needs money so he is using his title deed to guarantee this person. This person takes the money, does whatever he does, gets nothing out of it and the bank comes calling. So, what happens? His farm has to be sold. They run to their Member of Parliament (MP) to ask for help. This person knows that the Kshs14 million he has taken from the bank is guaranteed by somebody’s title deed so he can do whatever he wants with the money. This will stop with this kind of law. The first call for payment of a loan whether there is a default or not is the assets of the person who borrowed and not the person who guaranteed. If we do that, we will safeguard families and the economy. We will see prosperity 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."
}