{"id":573985,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/573985/?format=json","text_counter":114,"type":"speech","speaker_name":"Hon. M'uthari","speaker_title":"","speaker":{"id":1576,"legal_name":"Joseph M'eruaki M'uthari","slug":"joseph-meruaki-muthari"},"content":"there have been many changes and reforms. So, this Bill has taken into consideration the changes in the commercial sector. By coming up with this Bill in terms of amending the Companies Act, Cap 486, we are coming to terms with the realities of the moment by clarifying the various issues regarding the formation, management and operations of our commercial entities. This Bill is very important because companies, to a larger extent, manage our wealth. So, making it easy to register companies and defining the various types of companies that we can have is a good thing. The Bill also provides requirements relating to the duties of the directors. It also talks about corporate reporting in line with the updated laws of corporate governance. It also takes into consideration the various persons and laws involved as far as the management of these entities is concerned. Hon. Temporary Deputy Speaker, as we move on, it is important to consider, as a country, how to support our companies become more competitive compared to other entities. At the moment, and my colleagues have highlighted this, it is clear that we are very innovative people, but sometimes our innovations are lost because of not being able to access the startup capital. This is in line with the 2015 GES that was held here last week in terms of highlighting the issues and encouraging the Kenyan people to take an active role. Kenyans are encouraged to access credit facilities especially the youth, women and the disadvantaged people. They should be accorded an opportunity to access credit facilities so that they can move ahead. This is very good. This Bill brings to light issues that are related to the management and running of these entities. This clarification in line with the modern economy is good for us. It is seeks to streamline the process of registration and management of companies. This will make the running of businesses easy and through this, it will improve our competitiveness as a country in terms of doing business and even competing with other entities. When this Bill is enacted, the Government should take interest in its implementation. Some economies, like the Chinese economy, have proven that it is not only capitalism that works. Even public companies, if well managed and issues of corruption properly tackled, can succeed. Many of the Chinese companies that are doing construction work in Kenya are public- owned and yet they are very efficient in their work. So, if we support our companies, we can encourage home-grown companies and improve their production. You will realise that many of our companies like the ones that are involved in infrastructure development do not have capacity. The Government should take keen interest and establish a wing within the National Youth Service or in any other institution through which we can develop our home-grown companies rather than exporting jobs and money. The problem that we are having with our currency vis-a-vis the economic growth is a paradox. After getting the money, we again export the dollars through the exportation of jobs by giving them to foreigners. These foreigners come and do businesses or undertake major capital projects with our own capital. Even when we get grants, they again go back to the people who gave them to us because of our inability. The question of capacity, financing and capitalisation needs to be considered so that we can be competitive and expand the ground and space for our companies. If you look at this in terms of our competitiveness, involvement and participation, you will find that many times our local companies get unfair advantage. As we streamline these laws, 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."}