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{
    "id": 1511206,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1511206/?format=api",
    "text_counter": 282,
    "type": "speech",
    "speaker_name": "Nominated, ODM",
    "speaker_title": "Hon. Irene Mayaka",
    "speaker": null,
    "content": " Thank you, Hon. Temporary Speaker. I will proceed to Clause 3 which, for the last 12 years, has not had any changes in the core capital requirements allocated for financial institutions. I like that the Committee has already indicated that they are amending this to eight years and are staggering the periods within which the minimum core capital will be included. But even as we seek to change the core capital requirements for financial institutions, we should also be very keen on the tiers that the banking industry has been put in. We need to define if we are changing to the tiers that the banking institutions have been focusing on with the Central Bank for the previous years, or if we are now introducing a new tier system. That needs to be very clear. Clauses 5 to 8 outlines the specific penalties, the licensing requirements, the regulations and the code of conduct for all referred to as non-deposit-taking credit providers. This has also been a source for extorting consumers, including where we have consumers who take credit on their electronics and household items, and the items are taken away from them because they are not able to comply. Even as we do this, and the fact that we are introducing regulations on interest, this also prevents the extortion that happens within that particular space. Clause 12 gives a five-year transition period to businesses, and I hope the Committee is listening to this. I wish I could have the attention of the Vice-Chairperson of the Committee. Even as the Departmental Committee on Finance and National Planning proposes a five-year transition, I will introduce an amendment because I feel like the ongoing clients can be subjected to this. However, if a financial institution or a credit lending institution is onboarding new clients, then the new clients should ideally be subjected to these new laws. If we are onboarding new clients and they are still within the five-year transition period, then we are not curing anything. We need to start seeing the effects of these laws on the clients who are being onboarded. So, I will introduce an amendment to Clause 12 for us to accommodate that. Clauses 13 to clause 19 speak about the microfinance space. I like that they specified that this will only affect businesses whose annual revenue exceeds Ksh500,000. This is very important because it then classifies and ensures that we do not affect microfinance institutions, which are already assisting Kenyans. Further, I looked at the Committee reports regarding the public participation they conducted from Kericho, Isiolo, and Siaya counties. We can clearly see that Kenyans have welcomed these particular amendments because they have suffered for a long time from unscrupulous and mischievous lenders. It is also time for us to bring sanity back to our financial institutions. Let me give the example of Chase Bank, which collapsed. There was no anticipation from the customers to note that the bank was going down with their money. One fine print in terms and conditions used in the banking industry is that you cannot remove your deposits if a bank is about to go under. So, when specifying the core capital"
}