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{
    "id": 945669,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/945669/?format=api",
    "text_counter": 428,
    "type": "speech",
    "speaker_name": "Sen. M. Kajwang’",
    "speaker_title": "",
    "speaker": {
        "id": 13162,
        "legal_name": "Moses Otieno Kajwang'",
        "slug": "moses-otieno-kajwang"
    },
    "content": "If we had time and the good Senator for Nairobi City County was around, we would have illustrated how Nairobi City County Government borrowed Kshs5 billion from Equity Bank Kenya Limited many years ago. The money was meant for budgetary support. The County Government defaulted on the loan raising the interest from 14 to 24 per cent. You will not believe it but Nairobi City County Government is servicing a loan at an interest rate of 24 per cent. We have 10 of the 24 per cent that the bank calls “penal interest” because the County Government has defaulted on the loan. You can imagine paying 24 per cent of Kshs5 billion. That is a quarter of the amount. It means that Nairobi City County is paying more than Kshs1 billion every year. All the money that it collects from Gikomba Market goes to pay a loan sitting at Kenya Commercial Bank (KCB). When Nairobi City County was unable to service the loan in one bank, they sold it to another bank. So they moved it from Equity Bank Kenya Limited and sold it to KCB. When the Governor of Nairobi City County appeared before the Committee, he proposed to sell the loan to a third bank. The Committee wrote to the National Treasury not to approve that transfer of the loan and recommended that the Nairobi City County Government must come up with proactive measures to ensure that loan is settled. That is contained in this Report. It would be of interest to the people and citizens of Nairobi City County to know how this Committee has treated that matter. There are various issues that have been raised in the 10 reports for the 10 counties. For now, the way forward is that, once this House adopts this report, then we should move on to implementation. We have made certain suggestions on how we think that implementation can be done in a much more effective manner by this House. Madam Temporary Speaker, in recognition of the time and considering that there are other 20 reports that are still on the Order Paper, I beg to reply. Pursuant to Standing Order No.61, because this is a matter that affects counties, I request the indulgence of the Chair to defer putting of the question to a later date."
}