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{
    "id": 570856,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/570856/?format=api",
    "text_counter": 13,
    "type": "speech",
    "speaker_name": "Sen. Billow",
    "speaker_title": "",
    "speaker": {
        "id": 260,
        "legal_name": "Billow Adan Kerrow",
        "slug": "billow-kerrow"
    },
    "content": "Mr. Speaker, Sir, I rise to give a statement on the increase in the minimum share capital of commercial banks which was sought by the Senator for Bungoma. The Senator had sought to know a number of issues regarding the increase in the minimum share capital, what policy informed the announcement by the CS to upscale the minimum capital of the banks to Kshs5 billion. He also wanted to know whether the policy statement was subjected to public sector participation. He also wanted to know when the policy is expected to be effective and a number of questions that I will respond to as we move along. Mr. Speaker, Sir, the Statement from the Cabinet Secretary is long, so I will not go to the preamble and the introduction which explains the overview in the banking sector development. I want to draw the attention of the Senator to the East Africa Monetary Union Protocol which was signed in November, 2013 which, among other things, seeks to integrate the member states’ financial systems and adopt common principles and rules for regulation and supervision of financial institutions. I want to go specifically to the questions sought in the Statement. The Senator wanted an explanation on what informed the policy announcement by the Cabinet Secretary for National Treasury to upscale the minimum capital for banks to Kshs5 billion. As you know the current capital requirement for banks in Kenya is Kshs1 billion. The policy statement in the Budget is to raise that to Kshs5 billion. Pursuant to Vision 2030, the financial services sector has been identified as critical to achieving the targeted 10 per cent annual economic growth which requires that this sector stimulates a significant increase in investments and savings by mobilizing both domestic and international resources. The Government’s strategy is to move Kenya to new development frontier. To achieve this, the banking sector is expected to play a catalytic role through the mobilization of substantial resources which are expected to achieve this vision. Therefore, the Kenyan banking institutions are expected to be well capitalized to rise up to this challenge. The second reason that informed the policy is that the Government also aspires to transform Kenya into an international financial centre which is able to attract The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate."
}