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{
    "id": 41853,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/41853/?format=api",
    "text_counter": 233,
    "type": "other",
    "speaker_name": "",
    "speaker_title": "",
    "speaker": null,
    "content": "Mr. Speaker, Sir, sharing of credit information amongst lenders is very critical in decision-making for new lines of credit. With the recent introduction of deposit-taking macro-finance institutions, there is need to broaden the sharing of credit information to cover these new institutions. To this end, we propose to amend both the Banking Act and the Micro-Finance Act to allow for credit information sharing by institutions licensed under the two Acts. Mobilization of deposits from the public is only allowed to financial institutions regulated under the law. However, some unscrupulous persons have been found to engage in deposit-taking business without a license, particularly in the micro-finance sector with the aim of fleecing Kenyans. In order to address this problem I propose to amend the Micro-Finance Act to prohibit deposit-taking businesses by unlicensed entities. Further, we propose to amend the Micro-Finance Act to prohibit institutions from obtaining approval from the Registrar of Companies to use the words “Deposit-taking Micro Finance” in their business name from commencing deposit-taking business before being issued with a deposit-taking license by the Central Bank of Kenya. Further, I now turn to further deepening Capital Markets for faster growth and employment. Pension schemes are required to appoint fund managers to professionally invest scheme funds irrespective of their size and class of investment. This requirement has put unnecessary administration costs on pension schemes that invest all their funds in guaranteed funds. In order to lower the administration costs of these pension schemes and help them to grow their asset base, we do propose to amend the law to remove this requirement for appointing fund managers by schemes that invest all their funds in guaranteed funds. Mr. Speaker, Sir, the Government has to date initiated critical reforms that have positively impacted on the capital markets, leading to a substantial growth in the security segment. In order to further deepen the capital markets I propose to amend the Capital Markets Act to facilitate introduction of an over-the-counter market for bonds. This measure will go a long way to facilitate issuance of bonds by small and medium enterprises. In my last year’s Budget, we did announce measures to be taken to facilitate future trading in commodities. One of the measures was the establishment of a futures exchange to serve as a platform for trading futures contracts of multi-asset classes such as currency, mineral and energy derivatives. In this regard, we do propose to amend the Capital Markets Act to allow for the introduction of a regulated commodities futures market. We have had experience of insurance companies collapsing and exposing policy holders, particularly when they dispose of their assets upon experiencing financial problems. In order to address this problem we do propose to amend the Insurance Act to empower the Insurance Regulatory Authority to assume control of the assets of financially troubled insurance companies. Mr. Speaker, Sir, I now turn to further caring and cushioning our people against high commodity prices. In addition to policy and expenditure measures that I have already mentioned which are aimed at improving the welfare of our people, we have also proposed additional tax measures to cushion our economy and the people of Kenya against higher prices."
}