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{
    "id": 685346,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/685346/?format=api",
    "text_counter": 196,
    "type": "speech",
    "speaker_name": "Hon. H.K. Njuguna",
    "speaker_title": "",
    "speaker": {
        "id": 1508,
        "legal_name": "Humphrey Kimani Njuguna",
        "slug": "humphrey-kimani-njuguna"
    },
    "content": "On the higher minimum core capital from Kshs1 billion to Kshs5 billion, I have an issue with that provision. Is core capital the problem in the banking sector? In my view, core capital is not the problem but poor governance. In the 1980s, this country was controlled by about four banks. They were even saying that if you cannot sustain an account with more than Kshs10, 000, then they do not need you. A bank like Equity came in and exploited the bottom of the pyramid. You have Kenyan people who require financial services. If you raise the core capital from Kshs1 billion to Kshs5 billion, you will end up with about four banks in Kenya which will dictate the financial sector and services. We are running away from that because it is the same way we are saying that we do not want to be controlled by two political parties. Competition is healthy because when it happens, there is value for money. We want a situation where we have as many banks as possible. Absence of the law is not the issue but poor governance is. The Bill should address that. I like the issue of penalties. Directors of these banks were misusing deposits by giving themselves loans against the established law. In fact, these punitive measures should be made 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."
}