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{
    "id": 803003,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/803003/?format=api",
    "text_counter": 175,
    "type": "other",
    "speaker_name": "",
    "speaker_title": "",
    "speaker": null,
    "content": "Thank you, Mr. Deputy Speaker, Sir. I also stand to contribute in support of The County Governments Retirement Scheme Bill (Senate Bills No.6 of 2018). I have heard what the Mover of the Bill has said and want to add my voice on very key areas of concern, informed by the history of similar bodies like the National Social Security Fund (NSSF). The NSSF has a very bad reputation in terms of loss of billions of the contributors’ funds. This is informed by the fact that corruption in this country has affected the citizens enormously. The NSSF is known to have invested imprudently in projects whose rate of returns is extremely low. I have heard that the County Governments Retirement Scheme is also supposed to contribute to NSSF. This means that it is likely to lose its investments. There is also the history of the Kenya Railways Retirement Benefits Scheme (KRRBS). I am speaking with authority because I have worked with Kenya Railways Corporation for nine years. People read from the newspapers that during the old days and even the current times, the former employees of Kenya Railways travel from as far as Kisumu County to the Kenya Railways Headquarters to get their benefits, whereas we have modern ways of transferring money. Therefore, we do not expect members of the county retirement benefits scheme to suffer a similar fate. Mr. Deputy Speaker, Sir, my other concern is Clause 22 (2) (a) of this Bill, which deals with the implementation of public policy by the fund managers. It is always imperative to have a body or an organization which will give some guidance into where this scheme is supposed to invest prudently. We expect the said scheme to invest in reputable blue chip companies, government bonds, real estate and rates. They also need some prudential guidelines which are to be issued by the county treasuries, in the same manner in which a financial institution, more so a bank, under the Banking Act or the Central Bank of Kenya Act, is supposed to operate. There are always prudential guidelines. There is what we call Basel I, which has been overtaken by events. Now we have Basel II, which deals with prudential management of financial institutions where there are investments. This should also apply if, indeed, we will make headway. The other aspect is the humanistic part of it, which is not defined by this Bill. The way retirees are treated is important because this is their money. Once managers are put in positions, just like directors in a company, they are trustees and should take care of the investments of their contributors. Therefore, anytime they deal with former employees they should demonstrate a human face. It is also important that they decentralize the offices instead of parties walking all the way to the county offices. They could be moved to sub-counties and this would enormously help. I stand to support."
}