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"id": 17312,
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"type": "speech",
"speaker_name": "Mr. Mungatana",
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"id": 185,
"legal_name": "Danson Buya Mungatana",
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"content": "Mr. Temporary Deputy Speaker, Sir, first of all, I stand to support the Minister who has moved the Finance Bill. In particular, I just want to raise two quick points with the Minister. These relate to the proposed amendments to the Traffic Act. Mr. Temporary Deputy Speaker, Sir, I am very happy that I am seeing the Minister put into use the Information and Communication Technology in as far as registration of motor vehicles is concerned. I believe this is one of those measures that will bring about more efficient utilization of time and it will very well eliminate some of the problems we are having at the Port and some other places. The only thing I wanted the Minister to look at again is what he has introduced in as far as the use of IT in the Traffic Act is concerned. There is a proposed fine of not exceeding Kshs800,000 or imprisonment for a term not exceeding three years for a person who knowingly interferes with the computerized motor vehicle registration system. Mr. Temporary Deputy Speaker, Sir, I do not know whether there was intensive consultation in this but I imagine people who do this will be people who will be making much more money. I propose that this Kshs800,000 be relooked into so that it can be enhanced so that it has the deterrent effect. Even if you look at it as US$10,000 even with these measures, that is still low. I propose to push it up to something like Kshs1.5 million or the equivalent in other foreign currencies. The second and final issue is that in this Finance Bill, the Minister has chosen to amend the Insurance Act. In particular, he has said that we needed to give the regulator more power so that he can carry out his authority by protecting the assets of insurers or policy holders when there is a problem like we have had recently with one of the insurance companies which has gone under yet again. This is good and I support it. They are saying that when they consider whether or not to open a branch, they should take into account the history and the financial condition of the insurer, which is alright; the adequacy of the capital base and the structure of the insurer, which is also alright; but the Minister has proposed a fee of only Kshs20,000. If we are talking about a serious insurer, who would have planned for a period of time to go into branches, I believe that this is a small amount. The Minister needs to look at this amount again. I am not sure that an insurance company which will be paying only Kshs20,000 to open branches would be a serious insurance company. Why does the Minister not think about enhancing this fee to, at least, Kshs100,000 for the simple reason – which the Minister needs not be reminded – that there have been problems in the insurance companies. We need solid insurance companies. Definitely, if it will cost only Kshs20,000 to open a branch, maybe, even those jokers who are still in the business will continue collecting money from people and disappear. After all, what does it cost to open a branch? It costs only Kshs20,000. I am, therefore, asking the Minister to look at this amount again and see if they can enhance it. Mr. Temporary Deputy Speaker, Sir, even on the aspect of adequacy, I propose that the regulator comes up with rules which will determine what the adequacy of the capital base and the structure of the insurer he is talking about is, so that we, as Kenyans, can be confident that when an insurance company has paid the enhanced fee of Kshs100,000, there are even rules and regulations pertaining to the aspect of the adequacy of the capital of that insurance company. We will know that the insurance company has passed through the regulator, and the regulator is satisfied that such-and- such rules have been satisfied as far as the adequacy of the capital base is concerned. If we leave it the way it is, it is a bit loose. In fact, the regulator may just say that he has cross-checked but we, as Kenyans, will not know what it is that he has done. So, it is important for the Minister to ensure that rules are made to support this law just for purposes of protecting insurance policy holders and potential insurance policy holders. Mr. Temporary Deputy Speaker, Sir, otherwise, we should support the Finance Bill as presented by the Minister. I beg to support."
}