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{
    "id": 435870,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/435870/?format=api",
    "text_counter": 63,
    "type": "speech",
    "speaker_name": "Hon. (Ms.) Kajuju",
    "speaker_title": "",
    "speaker": {
        "id": 840,
        "legal_name": "Florence Kajuju",
        "slug": "florence-kajuju"
    },
    "content": "that the shares of a member may be used to offset a debt due to the society from such a member. This is erroneous and is likely to lead to de-capitalization of a society in case of default by Members. The current legislation in Kenya is clear that members’ shares are equities for the society and cannot be expended except in liquation. The shares cannot, therefore, be collateral against credit advanced to Members, nor can such equity be used to off-set debts owed. They can only be transferred to other members. The Bill needs to clearly distinguish between shares which are equity capital to the society and other deposits which may be used as collateral for credit advances, and also to offset debts due. This is particularly important for deposit taking SACCOs, which rely heavily on the Members’ shareholding as their main source of capital, in the absence of which the SACCOs’ existence will be threatened. On the audit and inspection, the Bill proposes in Part VII that the auditing and inspection of co-operative societies shall be undertaken by the appropriate national authorities. However, the Bill does not take into consideration the extent to which such inspection and audit might go with regard to the operations of the society outside the jurisdiction at the registration state. The Bill ought to recognize the fact the cross-border operations of a society may have material negative impact on the performance and stability of the society, especially a deposit taking SACCO. In this respect, the role of the partner states and equivalent appropriate authority need to be defined in the Bill. With regard to the terminologies, the Bill introduces terminologies which are not necessarily aligned to the prevailing legal system in Kenya. This includes the general assembly and the control committees, among others. These terms my bring confusion with regard to the operations of the co-operative society in the current module, unless the proposals are aligned. There is need to have a general terminology and not specific terminologies. On the East African Community Integration (Education) Bill 2014, the Committee considered it clause by clause, and found that the Bill is anchored on Article 7 of the Treaty which provides for people-centred and market-driven economy; the object of the Bill is to provide a legal framework within which people in East Africa can get the necessary knowledge and information about their affairs and activities. The title of the Bill, therefore, is not consistent with the contents of the Bill. For instance, the Title makes reference to education whereas the contents of the Bill show that it is meant for dissemination of community information or civic education among the partner States. Therefore, the Committee proposed the following amendments to the Bills. Under the East African Cross Border Legal Practice Bill, 2014, the Committee proposes the following amendments when the Bill comes to the Committee Stage in the East African 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."
}