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{
    "id": 981996,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/981996/?format=api",
    "text_counter": 397,
    "type": "speech",
    "speaker_name": "Sen. Cherargei",
    "speaker_title": "",
    "speaker": {
        "id": 13217,
        "legal_name": "Cherarkey K Samson",
        "slug": "cherarkey-k-samson"
    },
    "content": "Madam Temporary Speaker, despite the financial sector having its challenges, we must also make SACCOs competitive, because most of the SACCOs are still being run based on the laws that were there before, yet the banking sector is evolving daily. That is why we are even discussing about mobile banking. We are also talking about electronic use, and we now have apps where you can just go to your bank and borrow money from the app using your mobile phone. Madam Temporary Speaker, it means that the financial sector is undergoing a serious revolution with the modern day technology. We are told that MPesa is one of the unique mobile banking apps that has ever been seen in the world. We should ensure that we also introduce this modern technology in SACCOs, such that people who are techno- savvy, like the young people, can be part of the SACCO conversation in this country. In the area where I come from, SACCOs have always been associated with the old, and with people doing agriculture in the villages. Madam Temporary Speaker, the National Assembly Bill has been elaborated very well by the Majority Leader. Therefore, we should ensure that we put the necessary legal safeguards in place so that these SACCOs can be profitable to Kenyans. That will ensure that they are protected from the people who want to take advantage of them, and ensure we move forward. Madam Temporary Speaker, we should see how counties can become part of the entire process. I know that the tea sector also has their own societies. In the area where I come from, they have their own SACCOs. We have seen what SACCOs can do. How can the national and the county governments ensure that they create a proper environment for SACCOs in this country, from now and going forward? I want to advise that even as we process these amendments, we should look at ways of ensuring that we tighten and fine- tune this Bill in order to give the county governments a proper role in this issue of SACCOs. Finally, even as we think about reforming the banking sector, we should also cushion it. The process of liquidation in banking and SACCOs is almost similar when they go under. We should reform the banking sector and ensure we have a deposit protection fund. We should also cushion SACCOs so that its members can have an opportunity to be part of the banking system. This is something that we should support. Madam Temporary Speaker, as we debate the BBI, the centre of it should be based on how to make sure that Kenyans have economic power by ensuring that we have revolutionary financial institutions. The major lifeline for our people is farming. How do we transform farming from agrarian modern farming to a more techno-savvy one which is more profitable? It does not make sense to have 20 cows and have 20 litres of milk. You can have two cows and have around 50 litres of milk. That is the revolution we are looking for. Most milk SACCOs in my county were selling milk at Kshs15 per litre. However, the President stepped in and said that he will add more money to avoid milk glut in the market. How do we ensure that these SACCOs are profitable? How do we cushion and make them vibrant? The banking sector has forced us to think that financial institutions only deal with banking. Therefore, if you do not bank with the banks, you are a failure. It should be a complementary role. The financial sector should be reformed in a way that The electronic version of the Senate Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor, Senate."
}