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{
    "id": 959747,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/959747/?format=api",
    "text_counter": 151,
    "type": "speech",
    "speaker_name": "Kangundo, Muungano",
    "speaker_title": "Hon. Fabian Mulu",
    "speaker": {
        "id": 13360,
        "legal_name": "Fabian Kyule Muli",
        "slug": "fabian-kyule-muli-2"
    },
    "content": " Thank you, Hon. Temporary Deputy Speaker, for giving me the opportunity to join my colleagues in deliberating the amendment Bill by Hon. Jude Njomo. First, I appreciate the fact that Hon. Jude thought about the issues of banking especially with regard to protecting Kenyans. Now, Kenyans do not borrow because they plan to borrow. They borrow because of economic pressure and despair caused by economic factors like lack of capital to start business, lack of enough resources to build a house and lack of fiscal planning. Because of those factors, our people find themselves cornered by banking institutions, shylocks and also the phenomenon of mobile borrowing. The allure to borrow money is brought about by hard times and there is thinking that when you borrow money, you will be economically stable. Some people who are unable to repay the loans are bound to commit suicide. I am saying that this Bill has come at a time when almost 90 per cent of our Kenyan youth are under threat by the CRB. It is all because of mobile borrowing. It is a crisis if we do not come up with a system to control the issue of borrowing and give a proper system and operating factors on how to borrow money and how the lender is supposed to bring the invitation to treat. I say there must be invitation to treat because many consumers have been lured, especially in the banking industry, by very lengthy English. It is English with terms that one cannot understand. Our people end up being invited to engage in contracts that they do not understand. The Bill that Hon. Jude Njomo has come up with gives standard operations of the 4 per cent as the capping rate and banks can make profit. Many countries have grown from Third World to Second World. Western countries are talking about being in the Second World. They did not get the Second World status because they had capital somewhere. They got there through loans. Many individuals and commercial entities have grown because of loans. So, loans are good. Before our people take loans, we have to make a good environment for people to borrow. I am saying this due to cases of shylocks. There are some cases where our people are given money by shylocks at an interest rate of 60 per cent a month. Earlier, micro finance systems would come up with their terms of repayment in three months 19 per cent and yet the money for the loan was from the CBK. The money they gave was not theirs. They gave money they had been given by the CBK. So, this is the best thing; to come up with this Bill. We are not saying that the banking industry cannot give loans using the 4 per cent interest rate. The 4 per cent, if you do all the valuation to make sure your customer can pay back the money, will give proper returns. But because of fishy operations in the industry, people want to make money tomorrow. They want to misuse our customers. We cannot let this to go on in this Bill. There was the fusion of the law and a precedent was set. Some people create propaganda in the media to say that this Bill was thrown out, but despite the fusion of the law, there is nowhere in the world where we can let our people to get money without laws. We must have proper laws for our people to get money, especially through the capping of interest rates and by defining what a credit is and the security of such loans. Kenya is in the third world. We are in an economically growing country. We forget that if we want this country to progress into the Second World, the pockets of our citizens should also 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."
}