Entry Instance

HTTP 200 OK
Allow: GET, PUT, PATCH, DELETE, HEAD, OPTIONS
Content-Type: application/json
Vary: Accept

{
    "id": 723066,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/723066/?format=api",
    "text_counter": 168,
    "type": "speech",
    "speaker_name": "Hon. Ababu",
    "speaker_title": "",
    "speaker": {
        "id": 108,
        "legal_name": "Ababu Tawfiq Pius Namwamba",
        "slug": "ababu-namwamba"
    },
    "content": "own Parliamentary Savings and Credit Co-operative Society (PACOSO). If you go to the villages across the length and breadth of this country, you find young people and women congregating themselves in groupings that undertake diverse economic activities under this umbrella of SACCOs. This is one facet of our economy that is growing exponentially and we, therefore, become duty bound as legislators, to provide an enabling legal environment that can effectively manage this growth and direct the subsector towards making a contribution to the growth of our economy, especially providing investment capital and growing employment portfolio in the country. The Bill is particularly significant seen in the context of recent developments and incidents where many Kenyans have been ripped off and lost their investments and savings because of unscrupulous conduct and activities of groupings styling themselves as SACCOs and exploiting the lacuna in the law to reap of hardworking Kenyans. In the 10th Parliament, we had occasion to debate, not once and not twice but severally, the challenge of pyramid schemes or what Americans call the Ponzi schemes. This was a very emotive issue at that time because many Kenyans had been rendered paupers overnight because of activities of these Ponzi schemes. I do recall one particular Kenyan who approached me with a Petition in this House. He had lost his entire lifetime savings because of the get-rich-quick schemes run by undertakings styling themselves as SACCOs. Therefore, this law will protect savers and investors and also provide a framework or a system that can be run with certainty and members can have confidence that their money is safe and is being directed to legal activities that will not only help this sector to grow even faster, but will also give confidence to every cadre of our people; the big-time savers, the small times and all categories, to save. In this way, SACCOs will continue to become key focal points for mobilising capital and directing investment. Among the issues that I am pleased to note about in this piece of legislation is the attempt to provide a framework for penalties for crimes that have affected and led to the kind of challenges we have had previously. Of course, we know that deterrence is a key factor in ensuring that the rule of law rules. By providing stiffer penalties and controls and by providing stricter provisions in registration by regulating the management of SACCOs generally, there is no doubt this environment will become more certain and better regulated. I am very excited that we can only look forward to an environment where SACCOs become key drivers of our economy. There has been a tendency in this country for every little institution that gets into some funds to want to become a commercial bank. I actually do believe that the banking industry in this country is oversaturated by over-proliferation of banking institutions. I believe that is a challenge that can be cured by Kenyans having more reliable options where they can save money and access credit in an easier manner similar to the opportunity we have in this House where Members can access credit at our two SACCOS, namely, PACOSO and Bunge Savings and Credit Co-operative Society (BUCOSO), at a very short notice and without too many controls. I believe that with a better legal regime, SACCOs will become very strong options and an alternative to the banking industry, which will also help to drive sense into the banking industry in this country, which is driven more by excessive profiteering than anything else. Without belabouring the point, I add my voice to fully supporting the Bill. I support."
}