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{
    "id": 954761,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/954761/?format=api",
    "text_counter": 453,
    "type": "speech",
    "speaker_name": "Kipipiri, JP",
    "speaker_title": "Hon. Amos Kimunya",
    "speaker": {
        "id": 174,
        "legal_name": "Amos Muhinga Kimunya",
        "slug": "amos-kimunya"
    },
    "content": "Let me also add my voice to the issue of the banking amendment. I am on record in this House in the past having opposed capping of interest rates because we had alternative ways of ensuring that the economy or the cost of capital is cheap. You may remember in the late 1990s and early 2000s, you needed to know the bank managers and even take them for lunch to be allowed to discuss a business proposal. Come 2003, we removed all that. We did some adjustments and banks started going to the streets. They erected tents in streets looking for borrowers because they had excess liquidity and needed to get borrowers. We have gone around and now banks are all of a sudden downsizing because they do not need customers because there is a big customer called the Government. All they need is one guy in the National Treasury deciding how much to put. Right now, we have a Budget deficit of Kshs600 plus billion and over. What does it do? It triggers a signal that the Government’s appetite has been whetted further. So, what is likely to happen is that interest rates will go up and it will force the Central Bank rate to be raised because of the cap so that they can charge us more."
}