Entry Instance

HTTP 200 OK
Allow: GET, PUT, PATCH, DELETE, HEAD, OPTIONS
Content-Type: application/json
Vary: Accept

{
    "id": 1511243,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1511243/?format=api",
    "text_counter": 319,
    "type": "speech",
    "speaker_name": "Kesses, UDA",
    "speaker_title": "Hon. Julius Rutto",
    "speaker": null,
    "content": " Thank you so much, Hon. Temporary Speaker, for allowing me to contribute to the Business Laws (Amendment) Bill before us. As rightly said, this is an amorphous amendment of several laws, moreso the Banking Act, the Central Bank of Kenya Act, the Standards Act, the Scrap Metal Act and others. Firstly, I appreciate my Committee led by Hon. Kuria Kimani. For the last few weeks, we have been going around the country, collecting views and listening to Kenyans on how they want their country and financial institutions to be governed. The views Kenyans gave us have informed the amendments that will be presented later by the Chairman of the Departmental Committee on Finance and National Planning. I will concentrate on the Banking Act and the Central Bank of Kenya Act. The proposal to increase the minimum core capital by the banking institutions or commercial banks, as required by law, is not a new thing. It is not only a Kenyan issue but also an international requirement to ensure that the depositors' interests are protected. We saw the collapse of some commercial banks like Chase Bank. Up to now, the depositors are still struggling to get back their deposits. The need to increase this minimum core capital is to ensure that the balance sheet of a bank is not only what we see in their fixed assets like land, buildings and investments in securities as a venture to increase their income but also available resources or monies and current assets that are there for the depositors. Many people have said that this might kill the banking sector. However, this is something we need to encourage. Kenyans have now grown and developed their financial literacy. They are not the ones we had yesterday. They have gone to school and know the value of mobilising resources through chamas, groups, cooperatives, and individual savers and depositors. The way the world is moving and the encouragement of people to save to access credit, financial payment, and services calls for the need to expand the institution and ensure that the associated risks are managed. The increase in the minimum core capital will ensure that these institutions safeguard the interests of the depositors. When we had the public participation, we listened to the players in the sector. They justified why we need to look at the time frame that had been recommended to three years. We appreciate that most of these small financial or banking institutions are owned by Kenyans. We will reduce and accept the reduction of time to three years. We will also give the latitude to the multinational banks to override the Kenyan banks and investors. To give room to the Kenyan investors, I agree with many Members who have spoken on the need to re-look at the time frame that has been provided. The other issue that this Bill is coming up with is the protection of small-scale investors or micro, small and medium enterprises. In this category, we have the mama mbogas and boda boda riders. They are subjected to unscrupulous and unregulated business entities, more so the"
}