MPs support National Payment Systems Bill

MPs have backed a Bill seeking to reform the payment systems saying it would enhance credible transactions within the financial sector and promote investor confidence.

They spoke during debate on the National Payment System Bill, which aims to regulate and supervise payment systems. MPs added that Uganda and Tanzanian have implemented similar systems.

Finance Assistant Minister Oburu Odinga said Kenya is determined to become the financial hub of the region and the Bill will help it achieve the status.

The vice chairman of the Finance Committee Philip Kaloki said electronic money transfer systems are prone to vices like money laundering.

"This is the era of technology. This Bill will stabilise money transfers in the economy and strengthen financial institutions," he added.

Kaloki noted that penalties prescribed for offences, including Sh500,000 or one-year jail term, are good but lobbied for tougher punishment of a fine of Sh1 million and imprisonment for five years.

Rangwe MP Martin Ogindo said the Bill would reform and secure the payment system but noted the legislation would largely regulate the private sector.

"Government is the biggest spender. I want to see how clearly the Government is safeguarded," he said. He added: "It is important reporting system reach some independent body that is able to scrutinise the report."

Budalangi MP Ababu Namwamba said the legislation would curb pyramid schemes that had ruined the lives of Kenyans.

"If it becomes law, it would ease monetary transactions within East African region . It will be a stimuli for a monetary union in the region," added Defence Assistant Minister Joseph Nkaissery.