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{
    "id": 389442,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/389442/?format=api",
    "text_counter": 115,
    "type": "speech",
    "speaker_name": "Hon. Langat",
    "speaker_title": "",
    "speaker": {
        "id": 384,
        "legal_name": "Benjamin Kipkirui Langat",
        "slug": "benjamin-langat"
    },
    "content": "I do not want to talk much about the Bill, but I will go to specific amendments. I hope hon. Members have copies of the Bill and if not they can always find them in Room 8. They were distributed, I think, three months ago. Hon. Speaker, Clause 2 just seeks to introduce new definitions. Clause 3 seeks to clarify the fact that we want to inject resources into a bank as a liquid support. If there is a troubled bank then it clarifies that the resources are injected to the troubled bank so that it can start working again. The Clause also seeks to amend the principal Act to empower the Kenya Deposit Insurance Co-operation to enter into cross- border arrangements with other regulators or deposit insurers because we are getting global. We have the East African Community (EAC) here. They must be able to relate with others in the region, for example, Rwanda and Uganda. This is just recognition of Kenya for being international. We cannot just remain an internal organization. This Bill also seeks to change the financial structure of the corporation which is Kenya Deposit Insurance Corporation, so that in addition to what Parliament gives--- We all know that in Kenya we have a lot of problems in terms of financing. In addition to what we give, they must also be able to generate their own resources in their insurance scheme, so that they can defray part of their expenses. Therefore, this is one area which the Bill seeks to amend. The original Act says it can only use the money which is appropriated by Parliament and you know, in this country we have a lot of funding problems. We are hardly able to collect nine hundred billion shillings; the counties are demanding two hundred billion shillings. We have a wage bill which is four hundred billion shillings, so we are under pressure. Therefore this organization is given more powers to seek their own funding so that we can release part of the resources to other deserving sectors. One other thing that this Bill seeks to do is limiting the power of the corporation to sell assets of a troubled institution. Many times when they take over and sell the assets, they do not recover their money and they really do not manage the organization properly. It is said they need to look at other ways other than selling the assets of the corporation. It is believed that if there is a troubled bank and somebody comes to manage it, like the Kenya Deposit Insurance Corporation you should be able to revive the organization in a better way than selling their assets. To me, that is a very good provision because in the past we have seen assets being sold, depositors are not taken care of and the shareholders are left quarrelling. So, this really limits the purpose of that institution to management for the purposes of reviving the troubled financial institution. These amendments also seek to improve the corporate governance structure in terms of the board of directors of the Kenya Deposit Insurance Corporation, so that it says it should not come from the member organizations. It should be independent people who are able to see these things objectively not with vested interests. I think that is a very good system, good corporate governance. On Clause 5, the amendments on the Floor seek to amend the Principal Act, to clarify that expenses of the corporations’ normal operations shall be charged to the Kenya Deposit Insurance Fund. This is again what I was telling the House, that the corporation The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}