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"speaker_name": "Hon. Langat",
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"legal_name": "Benjamin Kipkirui Langat",
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"content": "Hon. Deputy Speaker, as I switch to the banking sector, the current monetary penalty for violation of the Banking Act is capped at Kshs5 million. If you breach the Banking Act, which is a very serious thing for it can cause the collapse of a bank, ou will be liable for Kshs5 million. Given the seriousness of the violation which some of the institutions have continued to commit, it is apparent that the existing penalty is not deterrent enough. In this regard, the Bill proposes to increase the maximum penalty to Kshs20 million and further allow additional penalty each day the violation continues. In the recent past, we have seen three banks go under. That has caused a serious effect on our financial sector and we do not want to see this happening. I support this provision that we must enhance the penalties associated with violations. There is also a proposal to increase the capital base for banks from the current Kshs500 million to Kshs5 billion over the next three years. I know this proposal was here last year, but this House did not find it necessary. Maybe, this year, we will need to consider this proposal because we need strong banks. We have seen how banks can become vulnerable within a short period. Maybe, we need strong banks that are competitive and attract deposits at competitive rates so that they can equally be competitive. We do not want to see a repeat of what we have been seeing in the recent past. Members should, therefore, consider that proposal this time round. Of course, we will still discuss this in the Committee of the whole House and agree."
}