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{
    "id": 645054,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/645054/?format=api",
    "text_counter": 77,
    "type": "speech",
    "speaker_name": "Hon. A.B. Duale",
    "speaker_title": "",
    "speaker": {
        "id": 15,
        "legal_name": "Aden Bare Duale",
        "slug": "aden-duale"
    },
    "content": "On Thursday, Central Bank of Kenya (CBK) placed Chase Bank, one of the country’s medium-sized lenders, under receivership. Thousands of Kenyans - from farmers to pastoralists to business people - have lost their hard-earned savings just because a few directors engaged in insider lending and decided to rob the depositors of this country. It is the third bank that the Central Bank of Kenya has taken over since Patrick Njoroge became its Governor last June. A fourth bank has since sent its chief executive officer and five senior managers on leave while its accounts are being investigated. The Auditor-General has been auditing the National Bank of Kenya under the Public Audit Act since it is a State corporation. Hon. Speaker, considering that the National Social Security Fund (NSSF) is the largest shareholder in the Bank, underlying the fact that most of the funds invested in that Bank are pension funds, can you order the Public Investments Committee to expedite their report on matters that they are currently investigating with regard to the National Bank of Kenya because that is their mandate? Secondly, can you, Hon. Speaker, direct the Departmental Committee on Finance, Planning and Trade to investigate the same because we represent those depositors? Today, there are Kenyans who cannot put food on their tables just because one director in Chase Bank obtained an unsecured loan of Kshs1 billion through inside lending. The matter is so grave such that it is not only about the directors, but the auditors of those banks who, in previous years, have given those banks a clean bill of health. It touches on the former Governor of Central Bank of Kenya and the previous leadership. It is a very serious matter. It is only in this country where you go to sleep while rich and wake up a poor person. It can only happen in Kenya. It does not happen anywhere else. Since Independence, there is no bank that has gone under receivership that has ever been revived. I can go on record on that. The 349 Members of this House are representing the many Kenyans who have lost their hard-earned sweat to criminals who have decided to form banks and steal from the depositors. Hon. Speaker, I want you to direct the Departmental Committee on Finance, Planning and Trade to investigate and report on all the problems that are currently facing the banking and the financial sector, including corporate governance issues in all the three banks, and report to this House within 45 days. In their investigation, the Committee should also inquire into possible regulatory issues at the Central Bank of Kenya and why it has failed to regulate the banking sector in advance. That Committee must also propose an amendment to the Kenya Deposit Insurance Corporation (KDIC) on how to safeguard the depositors of this country. For those of us who bank with other 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."
}