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{
    "id": 914985,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/914985/?format=api",
    "text_counter": 220,
    "type": "speech",
    "speaker_name": "Kandara, JP",
    "speaker_title": "Hon. (Ms.) Alice Wahome",
    "speaker": {
        "id": 1700,
        "legal_name": "Alice Muthoni Wahome",
        "slug": "alice-muthoni-wahome"
    },
    "content": "by Hon. Waititu is to secure the loan in the first instance, so that the principal borrower commits and completes his commitment to pay. The guarantor should not be made to pay where there is no proper due diligence and exhaustion of the security of the principal borrower. The borrowers have given their personal guarantees. Therefore before the guarantor is reached, have they exhausted all the securities and means of the borrower? Many times it has been found out that banks react very quickly and require the guarantor to meet the responsibility of the borrower. In the whole set up, the banking industry has the responsibility to assist the borrowers and guarantors in paying debts other than resorting in selling their homes or the securities that have been given. Therefore, I support Hon. Francis Waititu. He has worked very hard and met the Departmental Committee on Justice and Legal Affairs more than once to seek their support. He wanted to know whether legally what he is proposing is viable. I was very sure that I have seen suffering because the law has a gap that after a borrower defaults first or second time, the lending institution rushes to liquidate the security of the guarantor. Up to now banks seem to be complaining about capping of interest rates. Before that was done, ordinary Kenyans were suffering. Borrowing money in this country is very expensive. Businesses are not affordable. The banking industry is always accessible. Women have suffered because they do not have securities they can provide and the little securities that they have are homes which wives hold on to. I am happy to support the Bill because I see a situation where the responsibility of repaying a loan lies with the borrower and the bank and not the guarantor."
}