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{
    "id": 229921,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/229921/?format=api",
    "text_counter": 178,
    "type": "speech",
    "speaker_name": "Mr. Kimunya",
    "speaker_title": "The Minister for Finance",
    "speaker": {
        "id": 174,
        "legal_name": "Amos Muhinga Kimunya",
        "slug": "amos-kimunya"
    },
    "content": " Mr. Temporary Deputy Chairman, Sir, I associate myself with the sentiments of the House. But I just want to clarify one thing; that in bringing the amendment to the Banking Act, I know it was passed a long time a go; it was last year. If you look at the totality of the package that was contained in all these other things, the move was to give more powers to the Central Bank of Kenya to regulate the financial institutions. You will recall that even just two weeks ago when we passed the Microfinance Bill, we moved the power to regulate interest rates, and we gave it to an independent regulator, which is the Central Bank, so that it is not a political decision to be taken by the Minister, in terms of which bank to approve and which one not to approve. I think that is the spirit in which we brought this first amendment. We said, let the decision on whether a bank should increase its charges or not, not be a political decision by the Minister, but let it be a calculated decision by the regulator, which is the Central Bank of Kenya. We are then protecting the borrowers in terms of the magnitude of their loan, and we have already passed the first one in terms of how to protect the deposits. So, I just wanted to make that clarification, that, in fact, what we are removing is not protection of charges, but the person doing it. Instead of it being the Minister, let that responsibility lie with an independent regulator, which is Central Bank. That is what we are asking and I would like us to look at it from that point of view, that it is not an issue of saying the banks will be let loose. The point is that, let the decision be by the Central Bank rather than by the Ministry."
}