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{
    "id": 91926,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/91926/?format=api",
    "text_counter": 296,
    "type": "other",
    "speaker_name": "",
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    "speaker": null,
    "content": "what he has said. All I want to add is just a few comments. The Ministry has done a commendable job in certain respects and I think we must give credit where it is due. In particular, in the maintenance of macro-economic stability, the Ministry has done a commendable job. It has kept the inflation levels at reasonably low levels. I would like to single out the Central Bank of Kenya (CBK) which is the regulatory agency responsible for monetary policy. I think they have done a very good job for this country. If you look at the trend of interest rates that are being charged by commercial banks to customers, it has been declining. That is a very good thing. It means credit is affordable and that stimulates economic activity in the private sector and the cost of doing business goes down because of those low interest rates. In fact, I think CBK has been more proactive than the commercial banks. The commercial banks are responding, but I think they are doing so rather slowly. I wish to urge the commercial banks to heed the advice from CBK to reduce the lending rates further down than where they are today. I also wish to commend the Ministry for the introduction of the Economic Stimulus Programme (ESP) last year. I think there were serious implementation problems and, therefore, I do not think the intended effect of ESP was felt because no sufficient structures had been put in place to implement it. But this time round, 2010/2011, with sufficient consultations, I believe that ESP is going to have the desired effects. We would like to urge the Minister to work very closely with some of the Ministries like the Ministry of Education and the Ministry of Industrialization on some of the packages in the ESP. I have a few concerns which I would like to bring to the attention of the Minister. We have a number of funds that have been created by the Government. I am talking specifically here about the Youth Enterprise Development Fund (YEDF), for example. I see very little logic or rationale for the Government to direct that huge amount of money through commercial banks, which then on-lend at very high commercial rates of interest--- In fact, they make a lot of money out of it. I am not saying that commercial banks should not make money. But what I am saying is that commercial banks which have been given money by the Government to on-lend for purposes of stimulating economic activities, should only add something on top that reflects their cost of doing business; meaning that they should not lose money. But they should not make extra ordinary profits on account of funds that have literally been given to them for free. So, this is something that the Government should follow up and ensure that the funds which have been created by the Government with the intention of stimulating economic activities are lend to wananchi, youth or women organizations at low interest rates, so that they can serve the purpose for which they were created. Madam Temporary Deputy Speaker, I also would like to mention briefly the issue of the Government investing in De La Rue. This is an issue that we raised a long time ago. It is still before the Committee. What is the justification for the Government--- Arguments have been given; fairly good ones, but there have also been counter-arguments. We should not mix equity participation by the Government with competition and procurement of services. If we want to get currency notes, we should procure them competitively in accordance with the Procurement Act. If the Government feels that it is worth participating in an economic venture, then it should do so independently. I do know that currency supply is not just another good because it is a security item. I see that, that is where the Government is coming from. We have to balance those two arguments. We still feel that there must be put in place mechanisms to ensure that, merely by participating in the manufacture of currency,"
}