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{
    "id": 827521,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/827521/?format=api",
    "text_counter": 124,
    "type": "speech",
    "speaker_name": "Suna East, ODM",
    "speaker_title": "Hon. Junet Nuh",
    "speaker": {
        "id": 2840,
        "legal_name": "Junet Sheikh Nuh",
        "slug": "junet-sheikh-nuh"
    },
    "content": " Hon. Speaker, pursuant to Standing Order No.44(2)(c), I wish to request for a Statement from the Chairperson of the Departmental Committee on Finance and National Planning and the Chairperson of the Committee on Delegated Legislation regarding coming into force of Section 65 of the Finance Act, 2018. As you are aware, on 30th August 2018 this House passed the Finance Bill, 2018. Thereafter, the President retuned the Bill to this House pursuant to Article 115 of the Constitution with amendments on a few clauses, facts which are in the knowledge of all of us. Subsequently, this House passed the Bill in light of the President’s reservations on 20th September 2018 into law and was thereafter assented to by the President. One of the key provisions of the Finance Act, 2018 is Section 65. It provides that the Central Bank shall provide, in regulations, conditions on deposit or withdrawals by customers in banks and financial institutions. As it is presently, withdrawals and deposits from banks are governed by the Central Bank in circulars stipulating conditions for making deposits and withdrawals. This includes requirements for documentation and the quantum of deposits and withdrawals a customer can make from a bank among other a million and one conditions. This provision was included in the Finance Act by the Departmental Committee on Finance and National Planning, following public participation and outcry by Kenyans who raised issues with unclear stringent rules that apply in the banking sector, deterring Kenyans from engaging in public transaction. I agree with Kenyans that up to now no one can answer questions, including how the Central Bank came up with the guidelines, where they are made, whether in golf courses and wherever they were agreed upon. The contents of the guidelines are subject to speculation and, worse still, there is no impact assessment statement that has ever been done to assess the impact of the guidelines on the economy. This has been adverse in chocking liquidity and money circulation and flow into the economy. Where liquidity and money circulation are not present in an economy, stunted economic growth is the obvious result. Hon. Speaker, it is also similar to asking you how much you think I have in the pockets of my trouser. It is impossible for you to know. Unless you sneak through the air into my pocket, you will not know. I have not seen you putting on some goggles that can enable you see inside my pocket. Consequently, when customers shy away from banking, the Central Bank cannot tell how much money is circulating in the economy. Many Kenyans shy away from withdrawing or depositing money due to the strangling conditions. Indeed, this has seen shylocks and mobile loan enterprises rise with many Kenyans preferring to bank with them despite the exorbitant interest rates. This has made the bora uhai phrase gain traction among desperate Kenyans seeking to access banking services. Better still, The electronic version of the Official Hansard Report is for information purposes only. Acertified version of this Report can be obtained from the Hansard Editor."
}