HTTP 200 OK
Allow: GET, PUT, PATCH, DELETE, HEAD, OPTIONS
Content-Type: application/json
Vary: Accept
{
"id": 506987,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/506987/?format=api",
"text_counter": 340,
"type": "speech",
"speaker_name": "Hon. Aden",
"speaker_title": "",
"speaker": {
"id": 15,
"legal_name": "Aden Bare Duale",
"slug": "aden-duale"
},
"content": "Thank you, hon. Temporary Deputy Speaker. I stand to second this very important Bill; the Central Bank (Amendment) Bill 2014. Let me start by saying that, indeed, this is a Bill that is bound to transform the economic dynamics in our country. It is going to have such a fundamental effect, just as the Mpesa has had a fundamental effect on the financial sector of this country. If I may take Kenyans back a bit, the National Securities Exchange, then the Nairobi Stock Exchange (NSE), experienced phenomenal effect when ordinary Kenyans came into play in that particular sector. It is going to make it easy for Kenyans to be able to trade on Treasury Bills and Treasury Bonds. Unfortunately, not so many Kenyans understand what these investment instruments are. But I can tell you, if Kenyans are allowed to trade online, meaning that if you have any amount of money you wish to put away, you can do that using your phone or any other form of internet access, it will fundamentally transform our financial sector. Investment in Treasury Bills and Bonds right now is a preserve for only a few in this country. The reason being that the amount required to trade in Treasury Bills is Ksh100,000. Not so many Kenyans are able to afford that kind of money. But what hon. Kabando wa Kabando was saying is that, let us give opportunity to everybody to trade and invest to that an ordinary Kenyan who might not afford Kshs.100,000 but is able to afford Kshs.20,000 or Kshs. 5,000 can put his money in a secure place and be guaranteed a return. With time, this particular Bill, upon implementation will, indeed, transform the dynamics of the financials of our country. The Central Bank of Kenya, as I have read the Committee’s Report, should not fear the implementation of this Bill. It is important to have legislation so that Kenyans can be involved. They have admitted that they want these changes but I want to say that by legislating them, Kenyans will enjoy this faster. Ordinary Kenyans will now benefit from trading in these instruments; that is the Treasury Bills and Bonds. They will give them a good return. Right now, as hon. Kabando wa Kabando rightfully said, they only get 1.5 per cent from most of the commercial banks. With this, they will be able to get 10 per cent or 9 per cent return from the Central Bank by investing in these instruments. This is also one way of reducing risks. Commercial banks can close shop any minute! I am not saying there is any bank which is at the verge of closing down, but we have seen it happening in this country. Many Kenyans who were well off were reduced to poverty because the banks where they had put their money went under overnight, and therefore they lost their fortune. Investing in the Government of Kenya, a sovereign nation is good because even if governments change, there is reduced risk to your investments. For that reason, this particular Bill is recommending something that is very good for all of us. The law of demand and supply says that the more there is demand--- These things are done more often in an auction. The more the demand for Treasury Bonds and Bills from Kenyans, the lower the interest rates. For that reason therefore, the Government itself will be able to benefit eventually. They will be able to borrow money at very cheap rates. If there is Kshs.1.3 trillion of savings out there, imagine if this money is given to the Government for it to invest in the economy, the economy can have a multiplier effect. 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."
}