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{
    "id": 827522,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/827522/?format=api",
    "text_counter": 125,
    "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": "the joke has been that if you break into many houses in our villages, you do not need to hover around thinking of what to steal. Just go straight to the bed and check below the mattress and pillows and you will find a lot of money. Do not go to the kitchen or near the cowshed, just go straight to the pillow and mattress. For the rich folks, the sale of safes for keeping money has risen as people prefer keeping their money in them. I am not by any chance saying that regulating the banking service is wrong. In any case, banks and financial institutions in the European Union (EU) are the healthiest and most stable. They regulate banking services such as withdrawals and deposits. What is wrong with our financial sector is the manner in which the Central Bank has regulated the same through unclear and vague conditions in a form of guidelines and circulars. The last time I heard about circulars was when they used to be given to chiefs to harass Kenyans. To imagine that the Central Bank of Kenya prefers the use of circulars to regulate banking transactions is shocking. This state of affairs is what informs Section 65 of the Finance Act, 2018. This provision seeks to maintain the regulation of withdrawal and deposits through properly defined regulations. In this era where money laundering and the flow of illicit money through economic crimes has been a concern for most countries worldwide, the need for regulation cannot be overstated. The regulations will however be different from the guidelines; they will be thoroughly scrutinised, analysed and examined using considerations including impact assessment outlined in the Statutory Instruments Act, 2013 by the Committee on Delegated Legislation. There will be public participation and scrutiny of how regulations comply with other laws. I can go on and on, on the importance of Section 65 of the Finance Act but permit me to note that the section has to be implemented for us to kick out vague guidelines on banking transactions. As I conclude, just to restate, Section 65(1) of the Finance Act provides that the CBK shall prescribe in regulations conditions on deposits or withdrawals by customers in banks and financial institutions. Further, Section 65(2) of the Finance Act provides that the CBK shall within 30 days of coming into force of this Act prescribe regulations setting out conditions for deposits and withdrawals by customers in banks and financial institutions in accordance with Statutory Instruments Act. Section 65 came into force on 1st October 2018 and 30 days expire on 31st October 2018, which is next week when we will be on recess. This is, therefore, 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 on when the regulations will be brought to the National Assembly for scrutiny in accordance with Statutory Instruments Act. The days for CBK to comply are nearly over and so we move first with this in mind. To conclude, the Constitution is very clear; no person or body other than Parliament has the power to make provisions having the force of law in Kenya except under authority conferred by this Constitution or by legislation. We have not given these powers to the CBK to do legislation on our behalf. We all belong to our religious sects. Some are Muslims, Christians while some are Legio Maria – in my place they are called Roho Maler and Roho Mowar. You can also be an Opus Dei where you live below Kshs100 a day. To you, a million is like a billion shillings. Let us not bring those issues into banking regulations; let us have regulations that have been scrutinised by Parliament. With those few remarks, I request the Chairpersons of the two Committees to give a response urgently with their consideration. Thank you. 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."
}