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Someone did say Kenyans were born on the eighth day. To prove the unique-ness that is our country, trouble is brewing in the banking industry but important people want bloggers and users of social media arrested for the collapse of these banks not fraudsters.
Meanwhile, our MPs are now breathing fire! But the all-important question Kenyans are asking is, why the knee-jerk reaction when they could have formulated laws to protect Kenyans before?
As the MP for Tongaren Hon. David Eseli puts it, the 11th Parliament was a sleep. He asked his fellow lawmakers where was the finance committee when National Bank (NBK) announced they were selling their branches, and declared a profit while at it?
It was under the watch of the 11th Parliament that at least three banks have been placed under receivership to the detriment of Kenyan depositors who know little about banking jargon to decide the safest course of action or “safest banks” to deal with. And their ignorance is justified because their duty is to pay taxes not become experts at banking.
Furthermore, they put their faith in legislators whose duty is law making; including laws that inform financial institutions business by sealing gaps and loopholes that can be used unfavorably against Kenyan depositors. Now depositors are angry and confused after their hard earned money disappeared with the closure of three banks.
If there was a time Parliament could’ve dealt with the challenges with the banking industry, then it was this Parliament. The 10th Parliament going back provides a broad canvas painted with stories of bank collapse going as far back as 1984 and with a total of at least 32 banks collapsing from 1984 to 2012. To their credit, the 11th Parliament did pass the Insolvency Act that was accented on 11th of September last year (2015) but its effects are yet to be seen.
The Act aimed at providing for and regulating the bankruptcy or liquidation of natural persons, incorporated and unincorporated bodies to enable their affairs to be managed for the benefit of their creditors. In light of the closure of these banks therefore, one wonders whether MPs realize besides passing Acts they are also responsible for ensuring they are enforced.
It’s indeed surprising that MPs are now investigating these bank collapses with the aim of making recommendations to protect depositors and banks from the illegal activities of rogue managers and shareholders. Why not enforce the Insolvency Act that allows for depositors to withdraw their savings even as they embark on that 30-day investigation ordered by the Speaker?
The 11th Parliament should note that the burden to resolve malpractice in the banking industry squarely lies on their shoulders. If they are not up to the task the electorate that have been affected by these illegal practices that continue to thrive will act decisively in 2017.
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