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{
    "id": 723087,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/723087/?format=api",
    "text_counter": 189,
    "type": "speech",
    "speaker_name": "Hon. (Dr.) Nyikal",
    "speaker_title": "",
    "speaker": {
        "id": 434,
        "legal_name": "James Nyikal",
        "slug": "james-nyikal"
    },
    "content": "Thank you, Hon. Temporary Deputy Speaker. I rise to support this Bill. It has a noble objective to provide for establishment of deposit taking SACCOs, to regulate the same and to involve them in the regulatory framework, at least, of credit information sharing. This is a great move forward in the SACCO movement. The SACCOs are the first institutions that brought majority of Kenyans into the money economy. For many years, SACCOs have been the only institutions where a majority of low income and middle income earners could save and borrow from. Many of us actually managed to get through, through SACCOs. People have bought homes and land through SACCOs. To move it now to deposit taking status will bring a lot of people into the money economy, particularly in terms of banking because it is getting nearer there. The banks, as we know them, have a lot of restrictions. In fact, many people are worried and scared of dealing with banks. Many banks have also had very high requirements for even just opening an account or borrowing through the same accounts. Many of our people in the rural areas have never interacted with banks, but are very conversant with cooperative savings institutions. Many women groups have formed cooperatives which they have linked to table banking. Therefore, to now bring a deposit taking arrangement into this is to move our people forward in the money economy. I think it is the best, sure and gradual way of moving our people there. If you look at it, the introduction of deposit taking SACCOs is in a way aligning or harmonising the law with what is already happening. In many SACCOs, people do enhance their shares, increasing their savings to that they can get bigger borrowings. To now make it possible that you can use the same institutions for savings, deposits and investments is appropriate and is something we should support. I support the Bill because it brings the deposit taking SACCOs under the SACCO Societies Regulatory Authority (SASRA). I am impressed by the way the Bill has looked at the strict regulations that are required, particularly if you are taking money from a large number of people who may themselves not be empowered enough to protect themselves or to pursue those unscrupulous people who may want to get away with the savings of people who have chosen to use the facilities. Therefore, they have provided guidelines in Clause 3 on who becomes a director or chief executive. There have been arguments as to whether we should have minimum academic qualifications. More importantly, if one is supposed to deal with institutions that take money from ordinary Kenyans, we need to scrutinise them more by putting in place strict regulations. We should insist on knowing the financial status of the people involved, their academic qualifications, the status of other similar institutions that they have previously been involved in and the ability of the persons to carry out regulatory activities. That is important. Hon. Temporary Speaker, the same clause not only looks at the academic qualifications and past experiences of the individuals, but it also looks at their credibility and integrity; their past histories in terms of financial involvement to establish whether they have contravened any laws, whether they have been in companies that have collapsed and whether one was a director of a society which was liquidated. All these are important aspects in protecting the funds that will be collected in this manner. This is the right way to go. 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."
}