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{
    "id": 389444,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/389444/?format=api",
    "text_counter": 117,
    "type": "speech",
    "speaker_name": "Hon. A. B. Duale",
    "speaker_title": "",
    "speaker": {
        "id": 15,
        "legal_name": "Aden Bare Duale",
        "slug": "aden-duale"
    },
    "content": "Thank you, hon. Speaker, Sir. Just like the Microfinance Amendment Bill, this is again another amendment Bill to the existing Kenya Deposit Insurance Act. Just like yesterday, I will try to highlight the key areas in which amendments have been made as far as the Kenya Deposit Insurance Act is concerned. This is a very important amendment, particularly to the financial sector. We have the Finance Bill and a number of them are coming, like the Capital Markets Authority Bill. This is one time when we must exercise our legislative role so that my colleagues who are not here, tomorrow when this Bill goes through the Third Stage, will not raise the issue in their party group meetings and call a press conference. This is why this thing is done and I am happy today my good friend, hon. Ababu Namwamba is in. Clause 2 is being amended and basically it talks about the definition of terms and phrases. It defines the terms as used in the amendment. Clause 3 seeks to clarify when to inject into a bank liability support, a capital or financial liability. It talks about capital injection. It is about the liquidity ratio. In the same clause, it is making the Kenya Deposit Insurance Act more expanded and it creates more clarity. Clause 4 of this amendment Bill talks about enhancing the good governance principals by requiring the chairpersons of the boards of directors of the Kenya Deposit Insurance Corporation not to come from any of the member institutions. So, it is about good governance. If you are one of the institutions within the Kenya Deposit Insurance Act as a player and to forestall the conflict of interest then you cannot be a member of board of directors of the institution. I think it is very common in corporate governance practice that requires the appointment to be made from independent board members. Clause 5 of this amendment Bill is seeking to amend the principal act and it wants to clarify the expenses of the corporation’s normal operation account which shall be charged to the Kenya Deposit Insurance Fund. Parliament, as you know appropriates funds under exigent circumstances. That clause mainly makes that clarification. Clause 4, if I may go back, also clarifies on the number of board members to be appointed by the Cabinet Secretary in charge; that is the Cabinet Secretary for National Treasury. Clause 6 of this amendment is said to amend section 20 again of the principal act to ensure that monies appropriated by Parliament under this provision are for the purpose of this fund and not for any other purpose. So, it is trying to safeguard the role that the budgetary process of Parliament plays, that the monies for this particular fund cannot be used for anything else, not even by the corporation itself. 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."
}