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{
    "id": 493518,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/493518/?format=api",
    "text_counter": 219,
    "type": "speech",
    "speaker_name": "Hon. Aden",
    "speaker_title": "",
    "speaker": {
        "id": 15,
        "legal_name": "Aden Bare Duale",
        "slug": "aden-duale"
    },
    "content": "important markets in Africa, that is priding itself as being one of the sophisticated markets for the two main reasons, that is; one, we have very well established financial institutions whose credibility is now rating at international levels. Secondly, we are privileged to have capable human resource that is able to carry out very unique products in the securities and ensure that they can offer Kenyans as well as international investors these products. The growth of securities market will give Kenyans an opportunity, first of all, Kenyans will have the opportunity to invest in or diversify their investment portfolio. Unfortunately, not many Kenyans have much opportunity in terms of what they can invest in. If they get capital, people tend to crowd in the same traditional business of either shops or the business of buying and selling. But with the opportunity of a well established securities market, Kenyans will now have an opportunity to say that they can diversify their portfolio. That will give them an opportunity to shield them from the shocks of the normal economic trends. So, if ordinary businesses either in small-scale industries or in the investments of the shops and the likes are not working very well, then at least they know that their investments in the securities will probably be one that can save them at that particular opportunity. That diversification of portfolios is an opportunity that can be created if we establish a well regulated securities market. Additionally, we can be able to attract as country direct foreign investment. Once investors have the confidence that there is a well established securities market, then they can bring in their capitals and invest in the various instruments and security products in the securities exchange. The regulations will get rid of the so-called rogue fellows or conmen in this industry. I must say that, one of the good things to do is to ensure that institutions that are handling securities do so, by using or ensuring that they have professionals in place. This is very important. If you remember what happened during the financial meltdown in the developed economies, one of the reasons that brought down quite a number of economies is because of rogue unqualified people in the securities market. These products are of the nature that they are not visible; they are not things that you can buy and sell. They are not physical products, so when I say buy and sell, you cannot buy and sell them. They are not physical products like the traditional businesses. For that reason, if you have rogue or people who are out to con people, they can, indeed, manipulate this market and they are known to have done a lot of damage to even well developed economies such as the United States of America. Time and again you will see in the international media, certain traders in the securities markets who have been arrested because of certain reasons. That is possible when we have well established and regulated securities markets. For that reason, this particular legislation, indeed, gives us an opportunity to give the international investors and Kenyans the confidence to say that you can invest in Kenya and in the securities market, well aware that you are protected by law and each and every one of the professionals operating in that particular institution are people who are working within a legal framework. Indeed, I want to say that Kenyans stand to benefit a lot if this particular market is well regulated. That is because many Kenyans do not understand the securities market very much. It is not the ordinary “buy and sell” markets. It will help a lot if we implement those very important laws to ensure that Kenyans are protected. It will ensure that our economy is not just a bubble, but an economy that is based on very clear legislations and guidelines that govern all areas, up 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."
}