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{
    "id": 723003,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/723003/?format=api",
    "text_counter": 105,
    "type": "speech",
    "speaker_name": "Hon. A.B. Duale",
    "speaker_title": "",
    "speaker": {
        "id": 15,
        "legal_name": "Aden Bare Duale",
        "slug": "aden-duale"
    },
    "content": "In amending the SACCO Societies Act, this Bill provides for something called deposit- taking SACCOs. It is only dealing with those SACCOs that do deposit taking. There are many SACCOs, like the coffee SACCOs. They might have other functions but, this one is only amending the Deposit-Taking SACCOs. It gives them a new name that distinguishes them from other co-operatives, particularly non-profit making SACCOs. Non-profit making SACCOs are not within this legal framework. So, it will give legal restrictions. It will give certain legal limitations to the usage of this unique identity for deposit-taking SACCOs. What is the intent? What is the purpose? The intent and purpose of those deposit-taking SACCOs is to eliminate confusion and assure customers that the SACCOs they are using in any part of the country using the name “Deposit-Taking SACCO” are going to be a regulated institution. So, the moment you fall within that name, you must abide by certain regulations and legal regime so that the protection of the citizens’ savings is assured. It is just like the way we have it in the Banking Act and the Micro-Finance Act. Secondly and more fundamentally, the area that this Bill is going to deal with is the area of integrity among officers who will serve in the deposit-taking SACCOs. The men and women who will serve in that SACCO must agree in principle that they are people who can be trusted with the savings of the people of Kenya. What does the Bill do to those men and women who serve in these deposit-taking SACCOs? The Bill proposes to amend the Sacco Societies Act to provide for criteria of making a determination on the suitability of officers holding positions of responsibility in SACCOs. Those people who go to SACCOs are the middle-poor Kenyans. So, we have to be very careful on who becomes the chairman in charge of those SACCOs. Their integrity must be above reproach. You can steal the billions of the rich, but it is very immoral, even in the eyes of God, to steal from the poor. So, this Bill is putting in place criteria to make a determination on the integrity. If you steal--- You know Hon. Keynan is one of the rich, affluent Members. So, if you steal from Hon. Keynan, he will have some assets remaining. The same can be said of Hon. Duale or the rich who own banks. But if you steal from mama mboga and you happen to be the chairman of that SACCO, that is why this Bill is putting criteria to decide who becomes a member. What does it do? It deals with the governance structure of SACCOs. In essence, we are looking at the integrity and the governance structure. The deposit-taking SACCOs will serve deposit and credit services to a large section of citizens in line with the governance requirement in other areas of the financial sector. Thirdly and more importantly, this Bill seeks to amend the SACCO Societies Act in order to empower the SACCO regulator so that it can impose minimum standards on directors and senior officers as prescribed. The regulator is given some powers. Why are you a regulator? A regulator is always created to protect the industry and the consumers of that institution. In this case, this Bill seeks to amend the Sacco Societies Act in order to empower the SACCO regulator. You know the Leader of the Minority Party was one time the Chairman--- He was given a job by Hon. Charity Ngilu to investigate the pyramid schemes. He did a good job. The Report was tabled but, five or six years later, many Kenyans still miss their hard-earned savings with the pyramid schemes then. So, SACCOs are very key. They are in our villages, wards, constituencies and counties. I think this Bill is coming at the right time. We must also, in the future, bring amendments to the Kenya Deposit Funds Act so that when Hon. Dalmas Otieno and I bank with a certain bank and the directors and owners of that bank violate the Banking Act and the bank collapses, what next? How do we protect that? This House is under obligation to protect Kenyan citizens who save their hard-earned money with banks. For example, Chase Bank collapsed. There are millions of Kenyans who became poor by 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."
}