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{
    "id": 1096072,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1096072/?format=api",
    "text_counter": 231,
    "type": "speech",
    "speaker_name": "North Imenti, JP",
    "speaker_title": "Hon. Rahim Dawood",
    "speaker": {
        "id": 2572,
        "legal_name": "Abdul Rahim Dawood",
        "slug": "abdul-rahim-dawood"
    },
    "content": " I am sorry, Hon. Temporary Deputy Speaker. When I presented this Bill to the Departmental Committee on Finance and National Planning, where I used to be a Member until late last year, they were very enthusiastic about it. They even made more suggestions and said they would bring them to the House. Unfortunately, I have seen their Report saying that this will not be a good thing. The reasons given are very shallow in the sense that they just took the word of the KDIC CEO, Mr. Mahmud, whom I have nothing against. He said that this will create a big issue in the finances. However, prior to this year, there was a new way of raising the deposits insurance funds from banks. Previously, it used to be at 0.15 per cent of the total deposits that depositors have put in a particular bank. They are now going according to the Risk Based Model, where banks will have to pay more money into the KDIC Fund. Currently, they have more than Kshs130 billion. The KDIC is holding onto funds and every year they collect a lot of funds. Due to the risk-based insurance scheme, if they are sure banks will not fold up because they have done everything including the Central Bank of Kenya (CBK), the amendments should be moved in law legally, not through regulations but through an Act of Parliament so as to raise the amount from Kshs100,000 to Kshs1 million. The other thing is that I am willing to sacrifice a clause in the Bill stating, if somebody has more than one account, they should be consolidated. I am willing to give this away because people will open many accounts so as to spread the risks. I agree that moving the amount from Kshs100,000 to Kshs1 million is an important move. Once we have this Bill as an Act, it will instil confidence in bank deposits so people will not keep their money under their mattresses the way they used to or bury it. Many years back, there was a gentleman from Laare in Meru County who did not trust the bank system. He buried his money underground and before passing away, he told his sons where it was buried. When they dug out the money it had already been eaten by termites. We should not go that way again. There are many people who keep their money because they do not trust they will get more than Kshs100,000 or Kshs500,000 when they need it. I want to encourage my colleagues to support this, Bill. It is not for the rich depositor but the common depositor with less than Kshs1 million in a bank, institutions like a building society or others regulated by the CBK. With those many remarks, I ask Hon. Sankok to second this Bill. I request my colleagues to support it because I think this is something for the people by the people. Thank you, Hon. Temporary Deputy Speaker."
}