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{
    "id": 645070,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/645070/?format=api",
    "text_counter": 93,
    "type": "speech",
    "speaker_name": "Hon. Ngunjiri",
    "speaker_title": "",
    "speaker": {
        "id": 1179,
        "legal_name": "Onesmas Kimani Ngunjiri",
        "slug": "onesmas-kimani-ngunjiri"
    },
    "content": "Thank you, Hon. Speaker. I want to add my concern on this issue of the banking crisis in this country. The financial sector is a thermometer of economic performance of any nation. We had gone through the same crisis in the 1980s, where we even set up the Deposit Protection Fund that was later enhanced to an insurance fund. In 2008, we raised the capitalisation of banking for those who want to set up a bank to Kshs1 billion. With all those measures, we are saying that in the last nine months, this country has witnessed the collapse of three banks, starting with Dubai Bank in August, which was capitalised to about Kshs5 billion. Because it was a small bank, it was ignored. In October, the Imperial Bank was placed under receivership. It was number 17 in terms of strength. We have about 43 banks and one mortgage institution. The Imperial Bank had assets worth about Kshs70 billion with Kshs58 billion as deposits. It had 26 branches in this country and five in Uganda. So, you can see the extent of economic mismanagement. Last week, Chase Bank was placed under statutory management with deposits worth over Kshs100 billion and about 1,400 employees. This is a very serious matter. When we say that banks are a thermometer to the economy of a country, you can therefore imagine the extent of damage in the entire country, coming particularly from Chase Bank, whose focus was on small and medium enterprises, women SACCOS and the youth. Some companies are now going under. Once a bank is licenced, we do not have to go asking for an audit. That licence from the CBK is enough. Somebody is sleeping on his job. We would want to know the truth. It is affecting this country. I support the Leader of the Majority Party. We want this issue to be sorted out. Kenyans are eager because---"
}