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{
    "id": 1096099,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1096099/?format=api",
    "text_counter": 258,
    "type": "speech",
    "speaker_name": "Butula, ODM",
    "speaker_title": "Hon. Joseph Oyula",
    "speaker": {
        "id": 13313,
        "legal_name": "Joseph H Maero Oyula",
        "slug": "joseph-h-maero-oyula-2"
    },
    "content": " Thank you, Hon. Temporary Deputy Speaker, for giving me this opportunity to also contribute to this very important Bill. The amendment is very important to the people of Kenya. A depositor takes his money to a bank for safe custody and for future investment. A depositor expects that any time he goes back to the bank to look for his money, it should be available and not to be told that the bank has closed down hence he loses his deposit. So, it is the responsibility of the management of the bank to ensure that deposits are well taken care of. The Central Bank is there to supervise banks and make sure that depositors’ money is safe. Responsibility for whatever happens lies with the Central Bank and the banks. Deposit protection should come in in case banks are completely unable. And they should be able to compensate the depositor to the maximum level, not Ksh100,000. We should not look at depositors as small or big ones. To earn this money takes time, so it must be protected. If the small depositor who was expecting to increase his deposit is told that the money is lost, we are like telling the depositor that he would as well go to hell. My position is to support this Bill so that the depositor is properly compensated in case a bank fails. It should be the responsibility of the Central Bank to make sure that banks do not fail. Even the Ksh1 million we are talking about is not enough. Why do banks fail? It is because of the carelessness of the management. The banks should arrange with the Central Bank on how to compensate depositors when need arises. This idea of protecting small and big depositors is good. We should not only look at big depositors and ignore small depositors. When will the small depositors become big depositors? They can only increase their deposits if they are secure. To be secure, they must know that there is proper compensation should there be any loss. This Bill should be supported so that small depositors are protected. It is the small depositors that we as Members of Parliament should take care of. Everybody is talking of investments and improving the economy. How are we going to improve the economy when monies get lost in banks because of corruption? Money does not just disappear. It gets lost because of corruption. Whoever comes in, whether it is a big or small politician or the government, should know that they are punishing small depositors. Therefore, the small depositor stands to be compensated adequately. So, I support this amendment. Even though the increase was gazetted at Ksh500,000, that is still very little money. Even the Ksh1 million we are talking about is still on the lower side. I support this Bill and thank Hon. Dawood for having brought it. A lot of us have suffered in the hands of banks. Thank you, Hon. Temporary Deputy Speaker."
}