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{
    "id": 973630,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/973630/?format=api",
    "text_counter": 178,
    "type": "speech",
    "speaker_name": "Kipipiri, JP",
    "speaker_title": "Hon. Amos Kimunya",
    "speaker": {
        "id": 174,
        "legal_name": "Amos Muhinga Kimunya",
        "slug": "amos-kimunya"
    },
    "content": " Hon. Chairman, I have heard the comments from my colleagues but on this one, I have to agree with the President. You borrow money on the understanding that you are prepared to pay and not to default. So, we must, first of all, never pass laws here that will establish a culture of almost encouraging people to default. That is why you not only give security, but you also give guarantors who are jointly and severally enjoined in the process. Hence, you cannot say that because the person has given a house as security, which is probably matrimonial, and which cannot be realised at the point of default. The bank should continue pursuing the amount due to it until they realise it. The bank should be able to go for the guarantors and even choose the most realisable assets. That is the practice globally. I can see the sense because of the frustration and the reality on the ground as well as the several newspaper pages of auction notices. I can see the pain that the Hon. Member brought this amendment. However, we should look at the bigger picture. Kenya should not be seen as a country that is legislating to encourage people to default on payment of their debts. That is a fundamental principle. Otherwise, we will become a pariah nation. Who will trust that you will soon not be legislating on other things that affect investment? Banks use money that belongs to members of the public to lend to other persons. It is depositors’ money that is being lent. It is not just the bank. John Mbadi, as a customer, deposits money into his bank account. That money is then lent out to his colleagues. If his colleague fails to pay, it is Hon. John Mbadi who will lose his deposit. So, let us not just look at the banks. Let us look at the banks as purely an intermediary forum which take depositors’ money and lend it to borrowers. We must protect both the borrower and the depositor. Hon. Chairman, I could go on and on but for obvious reasons, let us pass this amendment. As a House, let us be careful in future as we legislate on such laws so that we do not end up putting the House into this kind of situation. Thank you, Hon. Chairman."
}