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{
    "id": 675580,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/675580/?format=api",
    "text_counter": 103,
    "type": "speech",
    "speaker_name": "Hon. Gaichuhie",
    "speaker_title": "",
    "speaker": {
        "id": 17,
        "legal_name": "Nelson Ributhi Gaichuhie",
        "slug": "nelson-gaichuhie"
    },
    "content": "Thank you, Hon. Speaker. To respond to Njomo’s request, we discussed his amendment Bill. We have done the First and the Second Reading and we are about to go to the Committee Stage. Due to exigency of duties, we have not been able to conclude. I want to assure him that we are on the final stage and we will be requesting the HBC to prioritise the same Bill for the Committee Stage when we come back from recess. We think we still have to do an amendment on his Bill, but that will also depend on the HBC if they will prioritise it as soon as we are through. My other request is that you give the Committee time to consider the challenges facing the banking sector. I want to request for extension of time. On 12th April, 2016, the Leader of the Majority Party stood on a point of order and requested you and the House to ask the Departmental Committee on Finance, Planning and Trade to investigate the challenges affecting the banking sector in Kenya that has seen three commercial banks put under receivership within a year. Several Members ventilated on the matter. At the conclusion of the debate, you directed that the Departmental Committee on Finance, Planning and Trade investigates the matter and reports to the House within 35 days, after the Members insisted that the issue of commercial banks going under was of great concern and needed serious attention, especially on the status of the customers’ deposits. The Departmental Committee began its investigations under the following terms of references:- (1) Investigate the root-causes of the collapse of Chase Bank, Imperial Bank and Dubai Bank; (2) Investigate whether the external auditors of Imperial Bank, Chase Bank and Dubai Bank did their work diligently while auditing these institutions; (3) Investigate whether the commercial banks regulators - that is the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA) did their job diligently; (4) Check on the corporate governance regime and its applicability in the banking sector. (5) Check on the interventions that were required to avoid the collapse of commercial banks. The Committee has since met the following bodies:- (1) The Governor of CBK; (2) The Director of Bank Supervision Department of the CBK; (3) The Acting Chief Executive Officer (CEO) of the Kenya Depositors Insurance Corporation(KDIC); (4) The CEO of the CMA; (5) External auditors of Dubai Bank; (6) External auditors of Imperial Bank; (7) External auditors of Chase Bank; (8) The Institute of Certified Public Accountants of Kenya; (9) The management of the board of Imperial Bank and Chase Bank; and (10) The Kenya Bankers’ Association. The Committee is yet to meet the board of directors of Dubai Bank and the former Governor of CBK, Professor Njuguna. As you are aware, the Committee’s programme of considering the matter was affected and, therefore, suspended during the months of May and June, 2016 due to the following reasons:- We were supposed to consider the Budget estimates which were tabled on 30th April, 2016 and were committed to the relevant Departmental Committees for consideration. Based on 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."
}