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{
"id": 959754,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/959754/?format=api",
"text_counter": 158,
"type": "speech",
"speaker_name": "Kiminini, FORD-K",
"speaker_title": "Hon. (Dr.) Chris Wamalwa",
"speaker": {
"id": 1889,
"legal_name": "Chrisantus Wamalwa Wakhungu",
"slug": "chrisantus-wamalwa-wakhungu"
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"content": "them have small profit margins. In the long run, that was like robbery without violence. That is why the servant of the people of Kiambu Constituency, Hon. Jude Njomo, moved this Bill. If I can remember, at that time, I was the one who seconded it. The Bill was passed. In fact, at that time, we thought His Excellency the President would not assent to it because we know – and it is in the public domain – that he has interest in the banking industry. That is not a secret. We should keenly look at Article 115 of the Constitution. We do not want an abuse when one is given an opportunity and there is conflict of interest. This amendment Bill is as a result of the interpretation of the courts. I am happy that Hon. Jude Njomo has tried to align it to take care of ambiguity, its constitutionality and its discrimination. Common sense dictates that interest rate is annual. That is the practice. When you borrow money from a bank, if you talk of 10 per cent, it will never be for a period of one day or two days or one week. Anyway, it has been clarified in the Bill. It will be annually. Secondly, on the issue of discrimination, I am happy that Hon. Jude Njomo, in this amendment Bill, has clearly captured it. When Hon. Mbadi was seconding this Bill, he explained it well. When we talk about relevance, it is difficult to segment or distinguish the 4 per cent and the ambiguity issue. In the Finance Bill that will be coming to this House soon, most of the things in terms of removing the capping of interest rate will be discussed broadly. I am happy to note that the Finance Committee rejected that proposal. When that issue comes to the Floor of this House, we are going to reject it. If at all Article 115 of the Constitution on Presidential assent and referral will apply, I will call upon this House to turn up in large numbers to raise the two-thirds majority quorum to overturn the President‟s reservations. We have so many things that have emerged and we need to have controls for consumers. We are here for the interests of consumers. Recently, as I checked my phone, I did not have money in my M-Pesa account, and I had a patient who had been discharged from hospital. His immediate relatives could not afford to pay the hospital bill. Somebody played around with my phone and discovered something called Fuliza M-Pesa. This animal called Fuliza M-Pesa is making abnormal profits. This service helped me to rescue that patient at that time, but I realised that Safaricom was charging abnormal interest rate. So, it is important that such services are also regulated. I want to know the banks that have partnered with Safaricom on Fuliza M-Pesa. This is happening through the backdoor. In line with Article 35 of the Constitution, Kenyans have a right to information. Fuliza M-Pesa might be easy to obtain but it is frustrating Kenyans. Right now, before you send money to somebody, you have to ask them whether they used the Fuliza M-Pesa service or not. Otherwise, if you send them money and they used the service, they will not get that money. So, on this animal called Fuliza M-Pesa, the Departmental Committee on Communication, Information and Innovation needs to summon Safaricom to appear before them. It is frustrating and fleecing Kenyans. It is robbery without violence. The interest rates of Fuliza M-Pesa are abnormal. It is making abnormal profits. In fact, it is negating the principle of this Bill. Safaricom also has Okoa Jahazi service, through which you can borrow some airtime when your account is depleted and you have no cash with which to replenish it. When I tried to use this service the other day, I realised that borrowers are charged 10 per cent per day. If you tabulate that annually, it is also abnormal profit. If you borrow Kshs1,000, they take away Kshs100 immediately. Some of these things that come easily must be controlled, because they are fleecing poor Kenyans. Somebody who takes Okoa Jahazi or uses Fuliza is on the lower side of the economy. He is a poor person or of middle-level income. When you look at the interest rates, it is important, Hon. Jude Njomo, that we should open the scope and go after 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."
}