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{
"id": 1554372,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1554372/?format=api",
"text_counter": 226,
"type": "speech",
"speaker_name": "South Mugirango, UDA",
"speaker_title": "Hon. Silvanus Osoro",
"speaker": null,
"content": "transformers. About 11 villages in my constituency are experiencing a blackout because of a worn-out transformer. Any time you visit the Kenya Power offices, they tell you they are waiting for a specific part from Nairobi or have sent for a part somewhere overseas. They are waiting for it to arrive in two to three weeks so that they can fix the transformer. That puts us in a very awkward situation."
},
{
"id": 1554373,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1554373/?format=api",
"text_counter": 227,
"type": "speech",
"speaker_name": "South Mugirango, UDA",
"speaker_title": "Hon. Silvanus Osoro",
"speaker": null,
"content": "This Bill seeks to encourage people within the electricity industry. Removing Excise Duty will substantially reduce the cost of locally assembling transformers. That is what we proposed last year. If we remove the 25 per cent Excise Duty, dealers in the electricity sector, including KPLC and transformer suppliers, can import transformers in parts and assemble them in the country. That will help create jobs because our country's assembly industry will grow. Currently, many transformers we import into the country are fully assembled elsewhere, meaning that jobs have been created elsewhere. Removing Excise Duty on imported transformer parts will encourage foreign investors to establish assembly plants in the country, thus creating jobs for our youths as we mitigate the challenge of not having enough transformers. I wish this Bill could have come to the House as early as 2023. We could have solved this problem."
},
{
"id": 1554374,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1554374/?format=api",
"text_counter": 228,
"type": "speech",
"speaker_name": "South Mugirango, UDA",
"speaker_title": "Hon. Silvanus Osoro",
"speaker": null,
"content": "If we allow each Member to speak, they will say that one or two transformers in their constituencies are missing. Some are even missing up to 10 or 15 transformers. I got a message from one of my constituents yesterday telling me I lied to them that I would fix a transformer about four months ago. I hope that the people in that constituency are following these proceedings. The problem with that transformer is that the part needed for it to be repaired is missing because of the 25 per cent Excise Duty. So, we have to wait a little bit longer. We are now in the Second Reading of the Bill. Once we pass it, the 25 per cent Excise Duty on that spare part will be removed. The transformer will then be fixed."
},
{
"id": 1554375,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1554375/?format=api",
"text_counter": 229,
"type": "speech",
"speaker_name": "South Mugirango, UDA",
"speaker_title": "Hon. Silvanus Osoro",
"speaker": null,
"content": "I urge all Members to support the Bill. In addition to the transformers, we should think about other parts, especially motor vehicle parts, like tyres. All these things were in last year's Finance Bill. We have talked about them. We should assemble those parts in the country so that we do not rely on finished products from other countries. We should be self-reliant. We can assemble transformers in the country. The challenge was that Excise Duty on specific parts was higher than on fully assembled transformers from other parts of the world. This is a step in the right direction. With those remarks, I fully support the Bill."
},
{
"id": 1554376,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1554376/?format=api",
"text_counter": 230,
"type": "speech",
"speaker_name": "The Temporary Speaker",
"speaker_title": "",
"speaker": null,
"content": "(Hon. (Dr) Rachael Nyamai): Hon. Wangwe."
},
{
"id": 1554377,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1554377/?format=api",
"text_counter": 231,
"type": "speech",
"speaker_name": "Navakholo, ODM",
"speaker_title": "Hon. Emmanuel Wangwe",
"speaker": null,
"content": " Thank you, Hon. Temporary Speaker. I rise to support the Amendment Bill, which seeks to remove the 25 per cent Excise Duty on electric transformer parts. I come from a constituency with very low electricity connectivity. Many times, the KPLC says that there are no transformers or that they are faulty. Whenever you approach REREC, they say that the transformers are being imported and are in transit. That puts you in an awkward position. You have to relay that bad news to your constituents, yet all they care about is electricity. Electricity connectivity in my constituency is about 34 per cent, which is very low. I hope that once this Bill is enacted, transformers and transformer parts will be available, and the whole country, including my constituents of Navakholo, will benefit."
},
{
"id": 1554378,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1554378/?format=api",
"text_counter": 232,
"type": "speech",
"speaker_name": "Navakholo, ODM",
"speaker_title": "Hon. Emmanuel Wangwe",
"speaker": null,
"content": "What is the import of the Bill? It is to ease the importation of transformer parts. We should now caution the Kenya Revenue Authority (KRA) not to shift the goalposts. We often pass Bills, but when they get to the KRA, they change the coding system. We then find that the code for an assembled transformer and individual transformer parts are separate. The KRA should implement the law as soon as possible. Once the Bill is passed and assented into law, the waivers should be put in place to get the transformers as quickly as possible. The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
},
{
"id": 1554379,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1554379/?format=api",
"text_counter": 233,
"type": "speech",
"speaker_name": "Navakholo, ODM",
"speaker_title": "Hon. Emmanuel Wangwe",
"speaker": null,
"content": "We have heard people say that the President is moving around in villages and commissioning electricity connectivity projects in various homesteads. What separates electricity connectivity in an upmarket estate from connectivity in the village? Electricity connectivity is required more in the village than in the upmarket estates because we also have streetlights. We need electricity in the villages for our sons and daughters to use for their studies. We used koroboi growing up, and it affected our eyes. We want our children to have better lives than we had. With those remarks, I support the Bill."
},
{
"id": 1554380,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1554380/?format=api",
"text_counter": 234,
"type": "speech",
"speaker_name": "The Temporary Speaker",
"speaker_title": "",
"speaker": null,
"content": "(Hon. (Dr) Rachael Nyamai): Hon. Rutto, Member for Kesses."
},
{
"id": 1554381,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1554381/?format=api",
"text_counter": 235,
"type": "speech",
"speaker_name": "Kesses, UDA",
"speaker_title": "Hon. Julius Rutto",
"speaker": null,
"content": " Thank you very much, Hon. Temporary Speaker, for giving me an opportunity to quickly add my voice to this amendment Bill. I support the amendment on the Excise Duty charged on imported transformers. Whereas the purpose of imposing Excise Duty on imported products is to enable domestic production, create employment and encourage consumption of local products, our situation is very critical because we have a challenge with the Excisable Goods Management System (EGMS) codes that have been provided by the Common External Tariff – that is EGMS Code No.8504. Whereas this amendment intends to reduce the importation of fully finished transformers, it challenges the KRA because there is no EGMS code supporting the assembly of imported parts in the Republic of Kenya. That is why we are here today. I want to speak about the country's energy and electricity connectivity demand. In my constituency, Kesses, where I was given an opportunity to lead, we had a 29 per cent household connectivity rate. Despite deliberate efforts to expand access, we continue to face challenges across the region and the country. In this regard, this amendment will help reduce the cost of connecting people to electricity. I wish to give a classic example of the ongoing FDB4 connectivity initiative undertaken by KPLC, which is a donor-funded programme. It had reached a stalemate due to a Court case. However, once the case was resolved and the contractors resumed their work, it became evident that the required materials must be imported from overseas. In this case, the cost of Excise Duty on the imported materials has become an impediment to the implementation of the project. This has taken time, causing a delay that denies Kenyans the opportunity to access electricity. Therefore, this amendment will help reduce the cost of imported materials for these contractors, thereby facilitating the expedition of projects. Lastly, we are facing a big artificial challenge caused by the vandalism of transformers. The relevant Committee should review the existing legislation to enhance the penalties for vandalism so that the culprits, including staff perceived to be colluding with criminals, can be appropriately punished. This is an economic crime that needs to be punished. As we work to create employment opportunities and promote local manufacturing, we also need to protect infrastructure by introducing severe penalties to deter vandalism and ensure that our limited national resources are safeguarded. We must also promote local assembly in Kenya. I realise that demand is not only in Kenya. It extends to other East African countries that are showing interest in local assembly within the region. If Kenya moves swiftly, we will create employment opportunities for our youths. With those remarks, I support the Amendment Bill."
}
]
}