Cut interest rates, DP Ruto tells banks

PHOTO | DPPS Deputy President William Ruto with Rebecca Arus of the Turkana Women Advocacy and Development Group during the Kenya Pastoralists Week in Lodwar, on November 30, 2013.  NATION

In Summary

• Double digit growth may not be achievable at this rate, says Deputy President
• Mr Ruto said that experts in the financial sector should be able to look at ways of bringing down the interest rates in order to allow Kenyans to borrow more and do business.

By OUMA WANZALA
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Deputy President William Ruto on Saturday warned that the country may not be able to realise double digit economic growth unless high interest rates charged by commercial banks were addressed.

Mr Ruto said that experts in the financial sector should be able to look at ways of bringing down the interest rates in order to allow Kenyans to borrow more and do business.

“With the current interest rate of about 20 to 25 per cent I wonder what kind of business one is supposed to do in order to get returns unless one is doing drugs,” said Mr Ruto.

He was speaking in Nairobi when he officially opened the African economic research consortium’s 25th anniversary celebrations.

“We are locking out almost the whole population. Even the middle class cannot now afford to own houses due to high costs,” said the Deputy President.

WARNING

Later, Mr Ruto flew to Lodwar where he issued a stern warning to cattle rustlers and inciters who continue to threaten internal security.

Mr Ruto condemned the latest incident on the border of Turkana and West Pokot counties where over 200 armed bandits held Lorogon village hostage for a week owing to a conflict over land.

Mr Ruto said the government was committed to ensuring that every village and citizen was safe.

“We will get rid of all illegal arms that are used by cattle rustlers in pastoral communities,” he promised.

He was speaking during the commemoration of the 11th Kenya Pastoralists’ Week organised by the Centre for Minority Rights Development.

The DP warned police officers who mishandled firearms that their days were numbered, pointing out that the ongoing police vetting was unstoppable.

He said the government would, by the third financial year, have bought 3,600 vehicles for security personnel as well as modernise police stations to serve the public more effectively.

He also said a fully paid insurance scheme for the police would be rolled out. He said a Sh5 billion pay increase for security personnel was rolled out starting this month.

Mr Ruto asked leaders from pastoral communities in Turkana, West Pokot, Samburu and Moyale to play their part in championing peace.

“At this time, we should not be talking of insecurity and a way of life where children are not going to school,” he said

.

He criticised opponents of the Nyumba Kumi security plan. “What is wrong with a person knowing his or her neighbour?” Mr Ruto asked.

He supported Turkana Governor Josphat Nanok’s plan to put 1,500 acres under irrigation, saying that arid and semi-arid land was viable for farming as long as water was available. He said the move would boost food security in the county.