Entry Instance

HTTP 200 OK
Allow: GET, PUT, PATCH, DELETE, HEAD, OPTIONS
Content-Type: application/json
Vary: Accept

{
    "id": 975550,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/975550/?format=api",
    "text_counter": 318,
    "type": "speech",
    "speaker_name": "Kipipiri, JP",
    "speaker_title": "Hon. Amos Kimunya",
    "speaker": {
        "id": 174,
        "legal_name": "Amos Muhinga Kimunya",
        "slug": "amos-kimunya"
    },
    "content": "producing, enhance their productivity and income, so they can retain people in office? It is very clear that at the fiscal policy level, we do not have space. We have exhausted all the options, but at the monetary policy level, we have several options that we are not utilising. We removed the interest cap rate which we were told is good for the economy. The Central Bank of Kenya (CBK) has gone ahead and removed the Central Bank rate and is now at 8.25 per cent, but has this sent any signal to any of the banks to reduce the lending rates? They are not under any obligation to coordinate their lending to this rate. So, they are doing nothing. The bank can do monetary open market operations, but we do not think we are in a situation where we need to start printing money. We have an instrument we used very effectively in the Financial Year 2003/2004. The cash reserve ratio was reduced and all over sudden, banks were awash with money. They set up kiosks on the streets trying to push money to the wananchi . We need to get to that kind of situation. Right now, I believe the cash reserve ratio is in the order of 5.5 per cent. If only we reduced it to 4 per cent, we will end up with more money getting into the private sector. We can have this discussion in detail, but I would like to urge the Government to start being innovative on some of these things. Also, on the issue of pending bills, the faster we can pay, the quicker we will get liquidity into the market. We will restore the creditworthiness of suppliers who are now being listed on the Credit Reference Bureau (CRB) and cannot access credit."
}