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{
    "id": 570877,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/570877/?format=api",
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    "content": "small country like South Sudan. The minimum share capital required to open a bank in that country, that became independent just the other day is $10 million. So, there is no way that we can again look at a bank for a county and a national bank. Mr. Speaker, Sir, when you look at the international standards that govern the banking sector, which are used by the CBK, for example committee on banking, they are standard. You cannot have one set of standards for a county bank and another set for national banks. Therefore, for those who are planning to open banks in the counties; whether county government or individuals, they must appreciate the supervisory structure in the banking sector by CBK. The standards are the same and the Standing Orders are also the same; they must appreciate that they have to plan their investments. With regard to the question by the Senator for Bungoma County, I agree that it will be necessary as Committee on Finance, Commerce and Budget to invite the CBK Governor. Since he is to appear before the Committee next Thursday to discuss the issue of forex currencies, we could take that opportunity to also discuss any issues on this matter that Members may not be satisfied with at the time. However, I want to advise Sen. Khaniri that for a small economy like Kenya, 44 banks is a large number for CBK to supervise and manage. Normally, economies of this size have very few banks and that applies to all the other economies in the region and so it helps to merge. It has been a policy of the Government for many years to raise the share capital to Kshs1 billion. Mr. Speaker, Sir, regarding the question by Sen. Ndiema on Small and Medium- sized Enterprises (SMEs); I have said very clearly that the SMEs in this country are largely catered for in terms of access to credit by Microfinance Institutions (MFIs) and SACCOs. However, these banks themselves, even the big banks, do not have a niche market. They are not restricted to large customers and so forth. They also provide credit and the Standing Orders, SMEs are not in any way disenfranchised. In fact, the more the capitalized the banks are, the more chances are that these institutions will get more money. To answer Sen. Kagwe’s question, the “unbanked” population in this country obviously far exceeds those who are “banked”. However, banking these days is not just about going to a banking floor. All the big banks today including the international banks, which are a small minority, have agency banking. They have agents even in the small remotest places. So, if one needs to deposit or do basic banking services, one can do so though the banking agents virtually in all parts of this country. With dynamism in the banking sector, people nowadays can use mobile banking. You can do most of the banking work without having to go to a banking hall. Mr. Speaker, Sir, the Senator for Migori asked for the list of the number of banks which already have capital of over Kshs5 billion. They are 21 banks and this is public information. I urge the Senator to go to the website of CBK to get the information on these banks. Sen. Obure asked about public participation in the banking sector. When we meet the CBK Governor, we will find out from him whether the Kenya Bankers Association and the banking sector have been properly brought on board with regards to this matter. 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."
}