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"content": "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."
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"content": "As I move, I want to first begin by thanking the Members of the Budget and Appropriations Committee for their diligence in processing the Estimates that were brought before us. Budget making is the sole mandate of this House. All Members of this House participate in the budget making process through their various departmental committees. In reviewing of the Budget Estimates, the Committee listened to the departmental committees represented by their chairpersons who I want to thank. The departmental committees brought to us very progressive highlights of the programmes that the Government is implementing in various departments. In the course of processing the Estimates, we listened to departmental committees’ proposals. Some proposed changes while others wanted the Estimates stayed. It is not in the DNA of the Budget and Appropriations Committee to refuse to adopt changes brought by Members through their committees. As we processed the Estimates, there were some changes that the Committee did not carry, but 99 per cent of the proposed changes were allowed. One of the proposals that was not allowed by the Committee was the reallocation of funds that are meant for fertilizer subsidy. Agriculture is one of the corner stones of this country. It remains to be one of the anchors of our economy. I will talk later on some of the programmes that have been funded. The Committee did not believe that reallocating resources from the fertilizer subsidy was necessary. The other thing that the Committee did not adopt was the reallocation dealing with the Coffee Cherry Fund. Coffee is becoming one of the most strategic cash crops of our country leading in foreign exchange and also its income to farmers is substantial. As a matter of fact, as I will be discussing some of the strategic allocations, you will notice that in one of the allocations, coffee development is one of the areas that we are putting more resources. As I go to the content of the Report, I would like to thank the National Treasury. For the first time, we have revenue projections from the National Treasury that are less than what has been projected by our own Parliamentary Budget Office (PBO). Our PBO is a premier think tank. In this region, it is the leading PBO. In fact, regional parliaments are coming to us for benchmarking within that space and it has been leading in helping them to develop some of their ways of running budgets. Hon. Temporary Speaker, I want to thank our PBO and the National Treasury because for the first time we are aligning in our thinking. The thinking within PBO is that higher revenue projections has not been tenable. Even as we speak, we have not been able to meet our revenue projections because we over project. However, for the first time, the revenue projection given to us by the National Treasury is less than what our own PBO has projected. It means, therefore, that we are making a more realistic budget because revenue collection projected is what will determine the kind of programmes we want to implement. I want to thank the new Cabinet Secretary for the National Treasury and Economic Planning because it is a more realistic budget and we are seeking to live within the confines of our means. Going forward, public debt is not going to be a solution for our problems. In the past, we have been running very huge budgets without factoring in our limited revenue sources, and we end up running a very huge fiscal deficit. In this Budget, the fiscal deficit that we are applying is 4.5 per cent to the Gross Domestic Product (GDP). Remember that when we did Supplementary II here, our fiscal deficit was 5.2 per cent. We have moved downwards by over 0.7 per cent basis point. This shows that for the first time, the broad-based Government which is approaching development in a more inclusive way is becoming a reality."
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"content": "Hon. Temporary Speaker, as I move into some of the strategic resources that we have been able to put more resources, agriculture remains the most important corner stone for this economy. In these Estimates, we have continued as usual to appropriate resources for fertiliser subsidy. The fertiliser subsidy is the reason we have been able to increase food production in the country. As we talk, we have been able to produce more food and that is the reason the cost 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."
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"content": "of living has come down and inflation has been managed. This Budget appropriates Ksh8 billion for various subsidies."
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"content": "You have recently seen the reforms that have been imitated in the sugar sector. To support those reforms, this Budget allocates Ksh2 billion so that the sugar sector becomes profitable. For a long time, the sugar sector has been a loss-making endeavor where farmers deliver their cane to the millers, but in the end, it is the Government that ends up paying them. Those reforms that have initiated are being funded to the tune of Ksh2 billion so that the sector becomes self-reliant."
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"content": "I mentioned the CCF. Coffee has become a strategic cash crop. In fact, when went round to engage in public participation, in the areas of Nyanza, Rift valley and Western, most farmers are abandoning their traditional cash crops and they want to move into the coffee sector. As I said, the coffee sector is giving more returns and is also a foreign exchange earner. Foreign exchange is going to be important for our economy going forward. Therefore, most farmers are moving into coffee. The CCF is an investment which has been done by this Parliament in the past. It is in the wisdom of this Parliament again that we continue to fund CCF and we have allocated Ksh2 billion towards that."
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"content": "I also mentioned that most farmers in those regions are trying to move away from other cash crops. They are engaging in what the Budget Report calls crop diversification. In order to achieve that, we have allocated Ksh2 billion, to help farmers in those regions who want to move away from their traditional cash crops like maize into coffee. We want to give them support so that they can fully engage through our support. We need about 2.7 metric tonnes of coffee for export and for this market. Therefore, we want to urge more farmers to go into coffee farming. Livestock insurance is also an important sector that we believe we need to fund substantially. In this Budget, we have allocated Ksh200 million for livestock insurance."
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"content": "Hon. Temporary Speaker, on the area of education, capitation still remains one of the biggest items in this Budget. This Budget has allocated Ksh90 billion for school capitation - Junior Secondary Schools (JSS), secondary and primary education. You heard about the uproar that the National Treasury did not allocate resources for examination. In this Budget, we have allocated 5.9 billion for examinations. Examination is a process and it starts with procuring exam materials. It goes into logistics later on and lastly into payment of examiners. The total vote for all that programme is Ksh12 billion, but for the start, we have allocated Ksh5.9 billion so that this process goes on. In the course of time, this Parliament will appropriate the other resources to support it fully. We have resources for recruitment of 20,000 more JSS interns in this Budget at Ksh7.5 billion. In the area of health, we have appropriated resources for procurement of vaccines. As you know, vaccines are very important and this country must be self-reliant in that area. We appropriated Ksh4.6 billion for that. We are building a cancer center at Kisii Level 5 Referral Hospital that is going to cost Ksh1 billion from this Budget. We have Universal Health Coverage (UHC) workers that have been demonstrating across the country for the last one year. It is the determination of this House that those workers be converted into permanent and pensionable terms. In this Budget, we have allocated Ksh6.1 billion towards that."
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