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{
    "id": 17344,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/17344/?format=api",
    "text_counter": 480,
    "type": "speech",
    "speaker_name": "Mr. Kenyatta",
    "speaker_title": "The Deputy Prime Minister and Minister for Finance",
    "speaker": {
        "id": 168,
        "legal_name": "Uhuru Muigai Kenyatta",
        "slug": "uhuru-kenyatta"
    },
    "content": "Madam Temporary Deputy Speaker, from the very outset, I want to state that I understand the concerns that have been raised by hon. Mungatana. But I think he has not actually fully understood the situation. As I was moving, I think I made it quite clear that I am proposing to amend the Capital Markets Act to allow for a regulated commodities futures market. So, it is important for us to recognize that what we are amending is the Capital Markets Act. So, the commodities and futures exchange will be operating under the Capital Markets Act. So, the Capital Markets Authority will still have the overall regulatory authority over that particular exchange. We want to allow for the recognition of self regulatory organizations. We want, for example, the Nairobi Stock Exchange, which is still regulated by the Capital Markets Authority, to be a self-regulatory authority, so that it can manage its members. Anybody who is applying to be a member of the Nairobi Stock Exchange must have certain conditions, et cetera, so that we do not have, as the hon. Minister said, people who just come in or fly by night. There must be rules and procedures. So, there will be primary regulation amongst themselves, in accordance with international best practice, good governance and proper accountability. But the Capital Markets Authority still has the overall responsibility and regulatory authority. It is important for us to begin to develop a culture amongst these institutions so that they also have a primary responsibility over their members to sort out themselves. However, that does not remove the oversight and the role of the Capital Markets Authority. It is really just to encourage that anybody who is applying must have certain standards that they are supposed to meet and to use. That is why we are saying we want to recognize those type of bodies within the Act, so that they have a role at the primary level of ensuring that their members play in accordance with international best practice and standards. However, the overall regulation and oversight still remains the preserve of the Capital Markets Authority. I think as we go to the next Bill, we should be able to see that a lot clearer. So, there is no issue of removing the authority of the regulator. The regulator remains and will continue to be the overall oversight and authority over both, for example, Nairobi Stock Exchange and this new futures market that we wish to bring on board. But we want to encourage those organizations to develop a culture of self policing, to say the very least. I thank all Members, once again, for their contribution."
}