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{
    "id": 954787,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/954787/?format=api",
    "text_counter": 479,
    "type": "speech",
    "speaker_name": "Wundanyi, WDM-K",
    "speaker_title": "Hon. Danson Mwashako",
    "speaker": {
        "id": 13509,
        "legal_name": "Danson Mwashako Mwakuwona",
        "slug": "danson-mwashako-mwakuwona"
    },
    "content": " Thank you, Hon. Temporary Deputy Speaker, for giving me this opportunity to add my voice to the debate on this important Bill. First and foremost, this year’s Finance Bill will go down in history as one over which we did not have much issues to raise in comparison to the acrimony we saw last year. The only bit that we must stand with Kenyans is on the interest rate caps. The National Treasury and the Executive have indicated intention to bring a Bill that wants to remove interest capping on the loans that we take from banks. I must commend the Hon. Limo-led Departmental Committee on Finance and National Planning for a good job in analysing the Finance Bill 2019, and in particular, bringing in amendments that disagreed with the request to amend the Banking Act. Many Hon. Members have talked about this. I just want to say that some of us had really bad experiences in matters loans when interest rates were not regulated. We remember that many borrowers in 2010 and 2011 took mortgages and other loans at rates above 22 per cent. I remember a situation where someone borrowed a loan at 24 per cent to pay in 20 years. Many of them were not able to service the loans. As such, the banks repossessed whatever securities that were given. So, I am happy the mood of this House is to refuse to amend the interest rate capping. This should remain. The reason given by the National Treasury that they want to amend this to have more money released or lent to SMEs is a fallacy. Banks under the Banking Association of Kenya are really pushing this House to amend this for their selfish reasons. We are aware that banks are making abnormal profits. For all sectors of this economy, banks are making a lot of money. We are aware that, even as they push us to amend the interest rates capping, their core interest is not to lend more to SMEs. They just want to compare whether to lend to us as individuals, SMEs or companies or continue lending to the Government. Now that we are saying no to the removal of interest capping, we must, as a House, interrogate and come up with legislation that will force the National Treasury to reduce its appetite for borrowing from the local market. Indeed, banks are making too much money by lending to the Government through risk-free instruments like Treasury Bonds and Treasury Bills. Kenyans are watching what this House is going to say about interest rates capping. No one in this country would like to go back to 20 or plus rates of interest. So, I really support the Finance Bill with these amendments that we are not removing interest caps. The second issue is the idea of registering student accountants. We have many student accountants working for organisations, for the Government and in every sector of this economy. The moment we agree with the National Treasury that we should not register students as members of the Institute of Certified Public Accountants of Kenya (ICPAK), we will only have those qualified in CPA-K being registered by ICPAK. We will cause a big number of accountants, though not qualified, deregistered from ICPAK. Therefore, we will have many people who are not regulated by anybody. The Departmental Committee on Finance and National Planning has indicated in an amendment, that we should continue registering student accountants, so that every practicing accountant at whatever level is regulated by ICPAK. I really support what the Committee has done. Lastly, as far as we are seeking to raise revenue for this country through this Bill, KRA and the National Treasury must continuously tell Kenyans why they are not able to meet their targets year in, year out. It is not fair for this Parliament, every year, to sit here to do a budget, listen to the Cabinet Secretary for the National Treasury speak and then give us a statement in 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."
}