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{
    "id": 573933,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/573933/?format=api",
    "text_counter": 62,
    "type": "speech",
    "speaker_name": "Hon. (Eng.) Gumbo",
    "speaker_title": "",
    "speaker": {
        "id": 24,
        "legal_name": "Nicholas Gumbo",
        "slug": "nicholas-gumbo"
    },
    "content": "turnover to be less than Kshs100 million, net assets less than Kshs50 million and employees earning less than Kshs30 million when we define small companies. I would want to believe that, that is the definition captured under the Small and Medium-sized Enterprises (SMEs) at the moment. Under the same clause, the mandate given to the Capital Markets Authority (CMA) under Part XXIV, which is on company takeover, is laudable because it is wider and more acceptable as it now includes non-listed companies. If you look at the current Capital Markets Authority Act, it only extends the mandate of the CMA to listed companies. To have the CMA mandate limited only to listed companies is limiting. What it means is that we will be having two sets of laws giving CMA different mandates if we pass this law as it is. I do not think that is good. It would be good to have a harmonisation. My thinking of harmonising those two sets of laws is to amend the CMA Act, so that it captures the mandate of the CMA as provided for in this proposed Bill. I also notice that Part XXIV of this Bill does not take particular recognition of the role of the Competition Authority of Kenya (CAK). This is a regrettable omission. It is regrettable because the role of the CAK is so important, especially when you start talking about acquisitions, takeovers and fair market practices. That is because there are times when entities engage in takeovers merely for the purpose of perpetuating unfair market practices, and so that they engage in a deliberate process to remove competition from the market. In so doing, they unnecessarily entrench unfair dominance and monopolistic tendencies, all with the purpose of denying consumers the right to choose. Clearly, as we go into the Committee Stage of this Bill, we must find accommodation under Part XXIV by recognising the role of the CAK to prevent the habit of some companies engaging in mergers, takeovers and acquisitions merely for the purpose of denying people a choice. Hon. Deputy Speaker, having said that, let me just briefly talk about the provisions of Clause 16 of this Bill, which is the statement of proposed officers. This is elaborate and it is very good in so far as it gives clear definitions, that the applicant for registration shall ensure that the requisite statement for the company’s proposed officers complies with the relevant Sub-sections (2) and (4) of this Bill which, I think, is a good provision. As I rush to conclude, allow me to say something about registration of foreign companies. For a long time, we have had a situation where we have lived in the global sphere. Of course, we will definitely be having engagements with foreign companies from time to time, but when we register foreign companies, the provisions here are that foreign companies must make sure they have their local representatives. This is a very good provision. I think the requirement for foreign registered companies to have local offices in Kenya is good, but then we have to be alive to the realities of the trading world now. I want to ask that when we get to the Committee Stage, we should look at how then we will deal with issues of e-commerce and other forms of electronic trading. What are the implications of insisting on this? Much as it is a very good provision that foreign companies must have their physical offices and local representatives here in Kenya, which is one form of empowerment, what does it mean for somebody who engages in e-commerce? What does it mean for somebody who engages in other forms of electronic trading? These are some of the areas that I can think of right now, but all in all, and as I stated, I want to thank the Departmental Committee on Justice and Legal Affairs. The Bill that we have 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."
}