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{
    "id": 203569,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/203569/?format=api",
    "text_counter": 227,
    "type": "speech",
    "speaker_name": "Mr. Billow",
    "speaker_title": "",
    "speaker": {
        "id": 260,
        "legal_name": "Billow Adan Kerrow",
        "slug": "billow-kerrow"
    },
    "content": "Mr. Temporary Deputy Speaker, Sir, what I am trying to say is that the amendments that the Minister is trying to bring through this Bill, in principle, are trying to give the Government, through the Cabinet or the Minister, powers to determine the monetary policy of the CBK. That is the concern that we have. I think we should leave the CBK independent. We have succeeded in the last few years when the CBK has retained independence and the Governor has had security of tenure, and the Government has, therefore, not had its hand in the till. Let us leave it that way. Mr. Temporary Deputy Speaker, Sir, my last comment on this Bill is on the issue of the Capital Markets Authority (CMA). The attempt by the provisions again for setting up Investor Compensation Fund to compensate the investors who lose their money because of the activities of brokers or dealers who have failed, or if the operations or business of dealers or stock brokers have failed. In principle, I find it a very good thing to do. But my main concern is that the difficulty we have had in our capital markets is with the operations of the CMA itself. The CMA has got rules that deal with corporate governance of companies which are listed on the Nairobi Stock Exchange (NSE). We have seen laxity - let me use that word - on the part of the CMA in actually monitoring the activities or good governance in this institution. We had the example of Uchumi Supermarkets Limited; a clear case where the company collapsed because of the activities of some of the 3984 PARLIAMENTARY DEBATES September 18, 2007 directors and, yet, no action was taken absolutely. We also had the case of the stock broker, if you can remember, a few months ago and no action was being taken until it was too late. I think it is important that the CMA, which has got the powers, should not be lax. I think the Minister should ensure that, even when the Investor Compensation Fund is set up, the CMA should be able to carry out its responsibilities without any fear from the Executive. Mr. Temporary Deputy Speaker, Sir, with those few remarks, I beg to support the Bill."
}