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{
    "id": 955007,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/955007/?format=api",
    "text_counter": 191,
    "type": "speech",
    "speaker_name": "Kipkelion East, JP",
    "speaker_title": "Hon. Joseph Limo",
    "speaker": {
        "id": 1915,
        "legal_name": "Joseph Kirui Limo",
        "slug": "joseph-kirui-limo"
    },
    "content": "After you leave the TTI, you are given a start-up pack or a tool box so that you are enabled to participate in economic activities directly. If you are a carpenter, a mason or you want to engage in making of shoes like a cobbler and the rest, you are given a tool box. However, this can be addressed at a later stage when we fund the TTIs to give those start-up packs. That way, we will be able to use the wet blue and the skin, which is produced in Kenya. For now, we propose some amendments to save this industry. As indicated earlier by Hon. Njomo, the Bill is proposing a repeal under Clause 43 of Section 33(b) of the Banking Act to remove the cap. There is an argument that this cap has worked negatively in terms of getting the SMEs the required credit. There was also a view from the courts that the amendment which this House did was unconstitutional. There are a raft of amendments which are required to make it compliant. The Bill is proposing to repeal that section. During public participation, most of the stakeholders who came opposed this repeal. The reason is that banks are claiming that it is working against them and it is going to kill the banking sector. At the same time, they do not show any effort in terms of training and reducing risks on the part of SMEs, so that they are able to take credit, use and refund it, and, therefore, reduce risk. On the other side, what is making SMEs not get credit is not entirely because they are risky. It was the view of many stakeholders that this is because the Government is not stopping the appetite of borrowing locally. If the Government stops borrowing locally, it will reduce competition. Once competition is reduced, the banks will not have an option, but to look for you, build capacity, give you credit and visit you every evening and morning to see how you are doing. They will give you tips on how to perform well and become partners in the SME world. Therefore, the sentiments which were made by the stakeholders together with the Members here need to be listened to and we look for a way. You know this country is for all of us and we need to ensure that SMEs and banks survive and the Government is able to get some little credit to run its operations. However, if the Government stops or reduces the appetite for credit, then it will somehow resolve the issue."
}