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{
    "id": 580659,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/580659/?format=api",
    "text_counter": 541,
    "type": "speech",
    "speaker_name": "Hon. Waweru",
    "speaker_title": "",
    "speaker": {
        "id": 1378,
        "legal_name": "Dennis Kariuki Waweru",
        "slug": "dennis-kariuki-waweru"
    },
    "content": "Hon. Temporary Deputy Chairperson, I strongly support the amendment. As you are aware, a capital market is a channel by which foreign inflows come into our economy. In the last few months, we have seen hemorrhage of our capital markets in excess of Kshs174 billion; an erosion of capital in this economy. I do not want to take too long. We have been having inflows of Kshs600 million every single trading day from the financial markets of the world. In effect, in the last six months, we have been having an outflow of approximately Kshs500 million out of this country. That has affected our currency. We have seen the weakening of the Kenya Shilling and the reduction in the liquidity in the market. As you are aware, the inflow of forex flows into the channels of our banking institutions and that provides liquidity to us all. That has adversely affected our economy. We have seen inter-bank rates in excess of 23 per cent and we have to start asking ourselves if this law serves our economy. I strongly feel that we need to remove Capital Gains tax as our market is in its infancy. It is a very small market. This foreign capital has options. These foreign Fund Managers are spoilt of choices. So, I do not support this law because it is discouraging foreign inflows into our economy and thus affecting our forex. That is why we are paying Khs105 for a US$. That is why we are also paying 20 per cent for the cost of money in our banks. They are all related. So, I strongly support and I feel it is high time that we realised that we made a mistake. Let us take the right decision to repeal this law, so that we can start getting direct foreign investment and also inflows to the capital markets."
}