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{
    "id": 995200,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/995200/?format=api",
    "text_counter": 509,
    "type": "speech",
    "speaker_name": "Sen. Farhiya",
    "speaker_title": "",
    "speaker": {
        "id": 13179,
        "legal_name": "Farhiya Ali Haji",
        "slug": "farhiya-ali-haji"
    },
    "content": "Madam Temporary Speaker, let me speak to the salient provisions of the Bill. At the onset, the Bill proposes to require procurement entities at the national and county government to pay suppliers on the prescribed date in terms of when the bill should be settled. If it is not settled by the prescribed date, this Bill recommends that the procuring agency shall pay interest to the suppliers in accordance with the section on the amount due under the contract for supply of goods and work services. The Bill provides maximum interest rates chargeable based on rates set and published by the Central Bank of Kenya. This is important because this Bill does not give a fixed interest. The danger of fixing the interest rate is that at some point, if the economy is thriving and there is much more money for people to borrow, the interest rates tend to come down. There are so many factors that impact the interest rate. If some of the factors are favouring the interest rates, sometimes they come down or go up. For example, the Government does what we call crowding out of local investors; them not borrowing from the local economy. Instead of people lending to the Government, they lend to small business people. If that happens, the interest rates tend to come down. To avoid a situation whereby the prescribed interest rate is too high or too low and not in tandem with the current prevailing interest rates, we based this on the Central Bank of Kenya reviewed interest rates depending on specific time of the year and circumstances. Based on that, then it can fluctuate depending on economic circumstances. Because of that, this Bill proposes to fix the interest rates according to the Central Bank of Kenya rates."
}