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"id": 246882,
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"speaker_name": "Mr. Oloo-Aringo",
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"legal_name": "Peter Oloo Aringo",
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"content": "Mr. Temporary Deputy Speaker, Sir, I beg to move:- THAT, taking into account that commercial banks have been unable to expand banking operations to many towns in Kenya and are in fact withdrawing their services from these towns; and aware that the spread of banking operations is key to developing all parts of the country, this House do grant leave to introduce a Bill to amend the Kenya Post Office Savings Bank Act, Cap.493 (b), Laws of Kenya, in order to allow the Kenya Post Office Savings Bank, in addition to and in furtherance of its responsibility and current function to advance loans and other forms of credit services to its target group, i.e., low income individuals and households and small and micro enterprises. Mr. Temporary Deputy Speaker, Sir, this is legislative Motion which is different from a petitionary Motion. In a legislative Motion, the hon. Member receives permission from this House to introduce a Bill. Such a Bill becomes a public Bill. When it is enacted into law, it becomes part of the statutes like any other law. I want to congratulate hon. Members, because most of them are now bringing legislative Motions to the House in order to improve the Statute Books because there are many bad laws and the Government may not have the time to bring those changes. Hon. Members have taken their own initiative and are bringing those changes to the Statute Books. This is a healthy development. As the Parliamentary Service Commission, we will support this by creating within the Service, the capacity of legal services to assist hon. Members to amend as well as to initiate Bills. Having said that, the history of the Post Office Savings Bank (KPOSB) is well known. It was started in the colonial times in the East African Common Services. Its purpose at that time was to promote thrift and savings amongst the African people because they were the low income earners in this society. Mr. Temporary Deputy Speaker, Sir, the thrust of my Motion is that, while retaining these aims and objectives of saving and thrift, we are now looking at affordable micro-credit as a human right. Once we progress from sheer saving and thrift, we should understand that providing micro- credit to the poor and destitute is a human right in the same way that education, adequate nutrition and provision of good health are human rights. Until we, as a country, address the provision of affordable credit to the poor and the marginalized, we shall not liberate this country from poverty. Mr. Temporary Deputy Speaker, Sir, why am I saying that? Who saves with the KPOSB? It is the small-scale farmers, traders, Jua Kali artisans, students in colleges and universities. Indeed, I June 14, 2006 PARLIAMENTARY DEBATES 1337 will explain later that even the Higher Education Loans Board (HELB), which is under the Ministry of Education, pays students through the KPOSB throughout the country. These people form the majority of the savers with the bank. So we are addressing the plight of the poor or small people in our society. Secondly, Mr. Temporary Deputy Speaker, Sir, the KPOSB has worked well so far, because within the KPOSB, the following services are offered: Ordinary savings schemes for the people, premium bonds, Save as You Earn (SAYE), fixed deposit scheme, premium savings scheme, money transfer services and visa credit card, which the ordinary person who does not use the conventional bank can use in the KPOSB. So, we can say that it will be the people's bank once we convert it into a bank. The fixed deposit account offered by the KPOSB gives an interest rate of between 1 and 3 per cent. There are also two million Kenyans who save with this bank. There is also no minimum deposit. That is why it is very attractive to many people. The majority of account holders are in small and medium sized businesses in all the small towns, whether you are talking about Kitale, Siaya, Wajir, Garissa, amongst other towns. The bank has branches which are spread throughout the Republic of Kenya. Therefore, its network is in every constituency and district. The KPOSB is the only financial institution that is found in all the 72 districts, including in the rural areas, with its headquarters being in Nairobi. At the same time, it has 600 professional staff at the headquarters. When we convert it into a bank, these members of staff are readily available to go and provide services to the far-flung parts of this country and every part of Kenya. In fact, after the Constituency Development Fund (CDF), this is going to be the most revolutionary movement that this House can initiate where credit will be available to the people in all parts of Kenya and in every constituency. To me, that is the answer!"
}