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{
    "id": 319210,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/319210/?format=api",
    "text_counter": 445,
    "type": "other",
    "speaker_name": "",
    "speaker_title": "",
    "speaker": null,
    "content": "Chair will remember that we moved some amendments to the CBK Act through Miscellaneous Bill. Through the Miscellaneous Bill, we brought in very many items. In fact, it was like we were amending the entire Act and what we actually did was wrong. This is because overhauling an Act of Parliament through Miscellaneous Bill and yet there was not adequate time to contribute and get views was not right. In so doing, that has brought a lacuna within the CBK where the board is unable to meet. We know that the CBK is supposed to be an independent body and it is so created. Even Section 231 of the current Constitution gives the CBK that independence. The Constitution says that the law must be enacted to ensure that the independence of the CBK is upheld. It was just last week when we debated a report about De la Rue on the printing of currency. Printing of currency or issuance of currency is one of the functions of the CBK and it cannot do that in isolation. This is because the currency is signed by the CBK Governor and the Permanent Secretary, Treasury. So, there must be consultations between the CBK and the Treasury for that to happen. The CBK, acting on its own, cannot have things working even if we talk about independence. The CBK will let down Kenyans if it cannot have things working because Kenyans can sue it since it is the one with the prerogative of issuing currency within the Republic. That is why the CBK was carrying out those orders to ensure that there is adequate currency in circulation. I have no problem with the issue of the two Deputy Governors but I have an issue where the Deputy Governor is not a member of the board. I have no issue with the Governor and the deputies going through the due process to ensure that we get the right person for the job. The amendment I will bring will seek to have the Deputy Governors as members of the board. The issue that pains me is that one of the Governor. We know the sensitivity of the CBK within the financial sector. We also know the policy directions it is supposed to give in terms of interest rates and monetary policy. Some of these things require instant decisions. We are talking about issues within the CBK where the Governor has to make instant decisions that he may not have time to consult or go and constitute a board because things will not work out. Even a bank may close. Mr. Temporary Deputy Speaker, Sir, I have worked in the bank and I am aware of a case where you could have a problem in a bank. I am aware of instances where you could have a problem with a bank. So, there must be an instant decision to ensure that banks do not have issues or activities that will make depositors run for their money because the bank will close tomorrow. But if the Governor is there as the chair of the board, he will ensure that an instant decision is made, and for that matter a crisis within the financial sector is arrested. So, I am saying that even globally, the chairs of the boards of these banks are the governors. All we have to ensure is that we give the job to the right person. Sometimes, when we make laws, we do not make them looking at a person. If the Governor who is there does not appeal to us, let us say so but let us not make a mistake just because we are looking at a person. This is for posterity and this is a bank that will take care of the monetary policy of our land. It is a position that will require the occupant to ensure that he gives the right policy direction; to ensure that the liquidity within the banking sector is always upheld and to ensure that there is no crisis within the banking sector."
}