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{
    "id": 1096092,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1096092/?format=api",
    "text_counter": 251,
    "type": "speech",
    "speaker_name": "Kipipiri, JP",
    "speaker_title": "Hon. Amos Kimunya",
    "speaker": {
        "id": 174,
        "legal_name": "Amos Muhinga Kimunya",
        "slug": "amos-kimunya"
    },
    "content": "are not exactly very genuine in their business and because of that risk, we must look at the global practice. You do not use insurance to manage banks. You use insurance to protect against the unforeseen circumstances that could create a loss. You also look at those people to really protect the small savers, not the big saver. The big saver could also be part of that collusion. The other thing is that whole point of whether we are creating some beneficiaries from this situation or only looking at that risky behaviour. I think I have covered that point. A more fundamental thing that I raised earlier, Hon. Shakeel raised it too because he is a Member of the Committee, is why we want to expose ourselves by losing the Kshs130 billion we already have. We are increasing the risk to another Ksh950 billion just because people have been lured by banks to go and put their money into those banks. The money disappears with the owners of the banks. Remember we are not talking of recovering that money from the owners. There is a risk that the money could just disappear. We have seen it. Why should the public, through the KDIC, be made to pay for rogue bankers who open up these banks not necessarily to create banks to offer intermediation services but with the intention of defrauding that money? We must reduce that risk. On this whole concept of having smaller amounts, if you look at the Nigerian currency, the biggest note is 50 Naira. It means very little. Ghana uses the Cedi. The reason it is kept so small in Nigeria is that the cost of forging becomes more expensive than the money itself. When you have bigger notes, you are encouraging people to forge those notes because the cost of manufacturing is less than the value you will get. Going by the same basis, if the benefits are so huge, they encourage people to manipulate. If you keep the benefits so low, you discourage people from that moral hazard situation. I think this is exactly the rationale to start us getting through this matter. I am trying to make this issue complex so that I can persuade Members to see the thinking of the Committee. Much as I really appreciate the work put in, I urge that there is no point in proceeding then we have a deletion of all the clauses only to bring it to zero. Let us reconsider it. I will be looking if there is a way we can salvage this situation. Certainly…."
}