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{
    "id": 463314,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/463314/?format=api",
    "text_counter": 196,
    "type": "speech",
    "speaker_name": "Hon. Langat",
    "speaker_title": "",
    "speaker": {
        "id": 384,
        "legal_name": "Benjamin Kipkirui Langat",
        "slug": "benjamin-langat"
    },
    "content": "7. Section 45 of the Microfinance Act, 2006 is amended by deleting subsection (2) and substituting therefor the following new subsection— “(2) Where a company registered under the Companies Act as a microfinance bank fails to acquire a licence to operate under this Act within a period of one year from the date of such registration, the company shall forthwith cease the use of the words “microfinance bank” in its name.” We are allowing the microfinance institutions which have been licensed to take deposits, to be referred to as banks. For example, the Kenya women deposit-taking microfinance institution can be known as Kenya Women Microfinance Bank. We are allowing them to use the word “bank”. The problem we have is that once a company has been registered by the Registrar of Companies, it has to look for a licence from the Central Bank of Kenya (CBK) so as to operate as a microfinance institution. Now, there is a risk because if you are calling yourself a bank and you do not have a licence for up to one year, it is serious. We need to limit that period so that it cannot be abused. So, we are saying that once a company has been registered, if it takes more than one year before it obtains a licence, it shall cease to use such a term so that it does not mislead the public. So, that is the import of that amendment."
}