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{
    "id": 736738,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/736738/?format=api",
    "text_counter": 73,
    "type": "speech",
    "speaker_name": "Hon. Katoo",
    "speaker_title": "",
    "speaker": {
        "id": 199,
        "legal_name": "Judah Katoo Ole-Metito",
        "slug": "judah-ole-metito"
    },
    "content": "Clauses 4 to 18 provide for the establishment of the Centre and the Authority especially when you look at Clause 5. Clause 5 establishes what is called Nairobi International Financial Centre Authority (NIFCA) which is a Legal Notice No.44 of 2014 that the President signed. It says in Clause 5(3) that the Authority shall be the successor to the NIFCA established under the Nairobi International Financial Centre Authority Order No.44 of 2014. Therefore, if this becomes an Act, it is just a transition from that Order No.44 of 2014 to this proposed Bill. Most importantly, Clause 6 talks about the objectives of the Authority where among others is to establish and maintain an efficient operating framework in order to attract and retain firms. Many financial firms, as provided in the Bill, will become more like subsidiaries to NIFCA and there will be regulations to regulate them in order to bring order and control in a coordinated way on how firms can join NIFCA. Hon. Speaker, being an integrated model, the Authority will collaborate with relevant agencies to develop strategies. Most importantly, in doing business, you have to be very strategic. Strategy is very important. Therefore, it needs to be developed for you to be competitive. Incentive structures including legal and regulatory framework should also be place to attract firms. Clause 7 gives the powers and functions of the Authority. They will have powers to certify firms and guide the conduct activities under the Centre. There should be order in doing business. Therefore, a criterion has to be developed on how firms will operate. In order to realise this objective among others, the formulation of these policies relate to the administration of the Centre, certification of their firms to conduct activities; power to impose even administrative penalties in case you violate some of the rules; and regulation or a directive and power to determine, impose and levy any key rates for purposes of running business, charges or fees and mostly in consultation with a CS in charge of financial matters. Clause 8 has the Board of Authority which will be chaired by a non-executive chairperson appointed by the President among other officers. Clause 9 also gives the terms of office of the chairperson and other members on how they are appointed. However, I want to rush to Clause 14 which is about the appointment, term of office, qualification of the CEO among others. The CEO will serve for a term of four years renewable only once and the qualifications are there. As I said earlier, Clause 34(6) is the Financial Centre Tribunal. It proposes for an establishment of an appeal tribunal to be known as the Financial Centre Tribunal which shall consist of the persons given there. In order to maintain the independence of this organ, the council and the board, some of the members will be appointed by the President. When you go to the tribunal, because we know there are so many litigation on financial matters and most of them will end up with going for appeals, it is good there is clear separation and independence of the several bodies. Tribunal is appointed by the Judicial Service Commission (JSC) and not by the President. Therefore, Clause 34 explains how that tribunal operates and how it is appointed. It will hear appeals against administrative decision of the Authority. It is JSC that appoints the secretariat and the staff of the Tribunal. Clause 38 empowers or provides for the CJ to lay down rules and procedures of the Tribunal. These provisions are in line with the new requirement on the management of the tribunals by the JSC. Hon. Speaker, I have explained most of the clauses on the Bill. Therefore, I just want to repeat that it is prudent for members to note that His Excellency the President signed the NIFC Order in 2014. However, there is a critical need to anchor the framework in an Act of Parliament in order to achieve the objectives of the Centre. In arriving at this Bill, the National Treasury 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."
}