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{
    "id": 959813,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/959813/?format=api",
    "text_counter": 217,
    "type": "speech",
    "speaker_name": "Gichugu, JP",
    "speaker_title": "Hon. Gichimu Githinji",
    "speaker": {
        "id": 13341,
        "legal_name": "Robert Gichimu Githinji",
        "slug": "robert-gichimu-githinji"
    },
    "content": " Thank you, Hon. Temporary Deputy Speaker, for the opportunity to support the Bill. One thing I like and appreciate about the ruling is that it was in agreement that this is a good law for Kenyans. That is why they could not repeal Section 33B but gave guidance on how to have some clarity on some issues. One of the issues that clarity was being sought is on the issue of the credit facility. Had it remained the way it is, then the section would have given banks a leeway to apply higher interest rates on financial guarantee which would have created a lot of disparity in terms of advancement of loans to persons interested. Hon. Temporary Deputy Speaker, I note that economic growth in this country will not be attained by only giving money to Kenyans. It will be achieved through how the money is given and how it can help Kenyans in terms of ensuring that the bank interest rates are not punitive. One thing that is good about this Bill is that it gives uniformity on how banks should operate. If you have to give a different interest rate, it has to be below 14 per cent since the current rate by the CBK is about 10 per cent. We had situations where banks used to lend at 28 per cent, 20 per cent or 22 per cent interest rates. It was a free market for all and in whatever form the banks wanted to deal with issues of interest rates. Kenyans should know that the Bill had already passed, and that it is only clarity that is being sought. It is not a new Bill that is being introduced or a new law that is being formed. This Bill applies to banks and other financial institutions. Even micro institutions are also covered because the definition of a financial institution according to the Banking Act is a company other than a bank which carries on or proposes to carry on financial business. Financial business is further described as accepting money from members of the public and also employing the money held on deposit or any part of money by lending on investment. So, any institution that lends moneys or invests is also affected by this Bill and this section. It is high time those who call themselves micro-institutions know that they are also affected. Also, they should not 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."
}