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"id": 235931,
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"type": "speech",
"speaker_name": "Mr. Katuku",
"speaker_title": "The Minister for Water and Irrigation",
"speaker": {
"id": 281,
"legal_name": "John Mutua Katuku",
"slug": "mutua-katuku"
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"content": " Thank you, Mr. Temporary Deputy Speaker, Sir. As I second this important Bill, I would like to thank the Minister for Finance for finally bringing this Bill to this House. It is a Bill that has been worked on for many years and has been pending before this House for sometime. The introduction of this Bill gives our investors, business community and Kenyans a chance to participate in a more organised way, bearing in mind that the Bill gives us a chance to have more coordinated financial activities. The Bill seeks to November 8, 2006 PARLIAMENTARY DEBATES 3517 protect Kenyans who have lost money in dubious institutions which are not structured and regulated in any way. This Bill brings about regulations to some of the mushrooming institutions which are calling themselves banks, and robbing our people of their resources. People visit such institutions thinking that they are banks when they are just family institutions, and deposit their money. When they need to withdraw it, they go back only to find the institutions closed. Some of those institutions promise to advance credit facilities to customers once they have deposited their money. By bringing this Act into place, we will be able to regulate and know who is in business, doing what and in what area. The Act will also ensure that the Central Bank of Kenya (CBK) has a greater role to supervise microfinance institutions. It will ensure that people who are appointed to work in the institutions have background knowledge of running financial institutions, unlike in the prevailing situation where you find people who have no background knowledge opening up financial institutions just because they have money they have stolen or earned from somewhere, yet they are not qualified. With the Act in place, we will expect the CBK to vet people who want to establish microfinance institutions so as to make sure that they have background knowledge. The introduction of this Bill gives Kenyans a chance to access credit facilities from recognised institutions. These is what most Kenyans are lacking. Sometimes bank interest rates go up to a level which ordinary Kenyans cannot afford. Once financial institutions are regulated, interest rates will go down to a level where Kenyans can borrow money and do business. Most Kenyans today rely on SACCOs to carry out most of their investments. Some of them rely on merry-go-round groups. The enactment of this Act will ensure that we give Kenyans a chance to have recognised institutions which can give them credit. Mr. Temporary Deputy Speaker, Sir, in addition to that, we have seen financial institutions going under with people's money. This Bill has a provision to ensure that a Depositors' Protection Fund is in place, in all financial institutions. The fund established under this Bill, just like in other financial institutions, is to take care of those who deposit their monies in the institutions so that in case they collapse, those affected can benefit from the fund. Without wasting time, I would like to appeal to hon. Members, bearing in mind that the Bill is long overdue, to pass it and give Kenyans a chance to have a law which will regulate or ensure the control of financial institutions. It will also ensure the establishment of financial institutions that are recognised by the law, and do away with those that have messed up Kenyans by going round and collecting money from individuals, yet their directors are not known and they are not recognised. I hope this House will pass this Bill so as to give Kenyans well regulated microfinance institutions. I hope that investors will put up such institutions so that Kenyans can access credit facilities, not only in the urban areas, but also in rural areas. Big institutions ask for big collaterals from customers who want to access credit. However, microfinance institutions will offer better terms. I hope that once regulated, microfinance institutions will give Kenyans a chance to contribute to our growing economy. As I conclude, I would like to express my disappointment with some of our colleagues in this House. Recently, I read in one of our the local newspapers about one of our colleagues who has been going round saying that our economy is growing very well owing to monies earned from the sale of drugs, and taken to the Nairobi Stock Exchange (NSE). That is unpatriotic and if anyone has any information regarding dirty money, he or she should report the matter to the relevant authorities. I hope that when that hon. Member steps at our airport, the relevant authorities will be waiting for him so that he can record a statement and tell us who is dealing with the dirty money. How can hon. Raila go out there and say such things? It is a shame! Talking about your country while out there is not very good. With those few remarks, I beg to second."
}