Jakoyo Midiwo Reveals Why He Doesn't Borrow Loans

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Deputy Minority leader in the National Assembly Jakoyo Midiwo on Thursday passionately disclosed that he does not borrow loans from Kenyan banks.

Speaking during the Second Reading of the Banking Amendment Bill 2015 in Parliament, Midiwo termed the banks as 'scandalous' blaming them of stealing from Kenyans through their high lending charges.

The Gem Member of Parliament faulted the local banks for charging excessively high interest rates, contrary to the limit set by the Central Bank of Kenya.

At some point during his contribution to the Bill, the lawmaker firmly stated: "I hate Kenyan banks".

Mr Midiwo questioned why multi-national banks in the country were continuously making huge profits yet their establishments in other countries were making losses.

The queries were further raised by Leader of Majority in the House Aden Duale who accused the banks of making Billions in profits while their customers were languishing in poverty due to the high lending rates.

Duale also claimed not to have borrowed loans locally, even as he sought to know why the lenders were charging higher interests than the principle amount borrowed. Duale observed that CBK had set the lending rate at 8% yet Kenyan banks were charging more than 10% in interests.

MPs discussing the bill in the House, blamed CBK Governor Patrick Njoroge for issuing orders requiring banks to question the source of money of customers transacting more than Sh500,000.

The lawmakers blamed Mr Njoroge of running the banking system contrary to the laws set by the Constitution, leading to a struggling economy and massive exploitation of Kenyans through the high interest rates.

The legislators are now proposing reduction in the rates to about 4% in a bid to shield customers from exploitation by the commercial banks.

This article was first published on Kenyans.co.ke

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