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{
    "id": 628676,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/628676/?format=api",
    "text_counter": 210,
    "type": "other",
    "speaker_name": "",
    "speaker_title": "",
    "speaker": null,
    "content": "farmer’s money held in Kenya Tea Development Authority (KTDA) fixed account at the Imperial Bank. The request sought the Statement to address the following:- (1) State the amount of money that was put in the fixed deposit account at the Imperial Bank Limited by KTDA. (2) State when the deposits were placed and explain the terms which they were placed. (3) Explain measures that KTDA has taken to cushion the small-scale farmers against loss following the closure of the bank. (4) Give details of any other monies deposited in any other banking institution by KTDA on behalf of small-scale farmers and state the measures that the agency has taken to minimize any risk exposure given the experience with the Imperial Bank Limited. The response is as follows:- (1) The amount of money that was put in the fixed deposit account at the Imperial Bank Limited by KTDA was Kshs2, 926,365,091. This was at the time the bank was placed under receivership. The deposits were placed by KTDA on the following dates and at the following interests rates:- (a) On 29th May, 2015, the amount was Kshs1, 105, 000,000, at 13.1 per cent interest rate. (b) On 4th June, 2015, the amount was Kshs800, 000,000, at 13.1 per cent interest rate; (c) On 16th, June, 2015, the amount of Kshs500, 000,000, at 13.2 per cent interest rate; and, (d) On 25th September, 2015, Kshs521, 365,091, at 23 per cent interest rate. (2) The deposits were made based on the attractive interest rates offered by the bank as shown above. (3) The other issue was with regard to the measures that KTDA had taken to cushion small-scale farmers against loss following the closure of the bank. The KTDA has a list of banks in their panels. The selection of the banks is made using various aspects that include:- (a) Bank assets; (b) NSE listing; (c) Reciprocal business; (d) Governance structures; and, (e) Geographical presence. To limit exposure in any bank the board sets the limit for each of the banks. The Imperial Bank was introduced in the panel in July 2011 when its asset base, according to its audited accounts, was Kshs19.72 billion. The limit then was Kshs0.5 billion. In order to consider continuation of a bank to remain on the panel of the listed banks, KTDA management services relies on:- (a) Audited accounts as published. (b) Licensing by Central Bank of Kenya (CBK) and the regulator. (c) Other information, for example, in the case of Capital Market Authority (CMA) and CBK which approved a public bond placement that was oversubscribed and The electronic version of the Senate Hansard Report is for information purposes"
}