Hon. Members, it appears like we do not have quorum. Ring the bell.
Very well, we now quorate.
I will be making a communication after a short while. Hon. Members, I wish to introduce to you a delegation from the Parliament of the Republic of Uganda, who are seated in the Speaker’s Row. The delegation comprises of the following hon. Members:- Hon. Iriama Margaret
- Leader of Delegation Hon. Kabasharira Naomi
- Member Hon. Bayigga Lulume
- Member Hon. Betty Aol Ocan
- Member Hon. Barumba Beatrice Busaniya - Member
Hon. Ninsiima Ronah
- Member Hon. Wadanda Famiah
- Member The delegation is accompanied by Ms. Adrine Natukunda, a staff and Ms. Janet Mataka, the Secretary to the delegation. The Committee is in the country to benchmark, learn and share experiences with Members of this House on the process and challenges encountered in the implementation of tobacco related laws. They have been with us since Tuesday, 24th June, 2014 and they are scheduled to complete their undertaking on Friday 27th June, 2014. On my behalf, and that of the hon. Members, I wish to welcome them to the National Assembly and wish them fruitful engagements with you Members. 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.
I thank you.
Thank you hon. Speaker, I wish to request for a Statement from the Chairperson of the Departmental Committee on Health regarding the nonpayment of medical expenses by the National Hospital Insurance Fund, in regard to orthopedic services. The Chairperson should find out in terms of timelines when the National Hospital Insurance Fund can commence payment of orthopedic appliances. Thank you.
The Chairperson, Departmental Committee on Health or the Vice Chair; hon. Racheal Nyamai or hon. Pukose. Go to the next one. Member for Embakasi North, hon. Gakuya raise your matter.
Thank you, hon. Speaker. Pursuant to Standing Order No. 44(2)(c) I wish to request for a Statement from the Chairperson of the Departmental Committee on Finance, Planning and Trade regarding the preparedness of Kenya for attainment of Vision 2030.
That is enough. Let us hear from the Chairperson of the Departmental Committee on Finance, Planning and Trade; hon. Langat. In the interest of time, we do not need the narrative. We just need what is recorded there.
Thank you, hon. Speaker. The Statement is about Vision 2030. It is quite wide and we, at least, require two weeks to be able to pursue the matters that the Statement is seeking.
Very well, two weeks?
Two weeks is okay, hon. Speaker
Next, hon. Neto. Member not being present, we move to the next Statement request.
Thank you, hon. Speaker. Pursuant to Standing Order 44(2)(c), I wish to request for a Statement from the Chairperson of the Departmental Committee of Defence and Foreign Relations regarding the welfare of the Kenya Defence Forces soldiers returning from service in Somalia. Under the Operation Linda Nchi, Kenya Defence Forces troops---.
That is enough; we do not need those stories. What is on the Order Paper is enough. Just read what is there; forget about those other stories. Those, you can deal with them when the response comes. The Chairperson should be able to pick the request and address it in details, because even if you give us a narrative, it is not going to help anything. There is no value addition. Departmental Committee on Defence 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.
and Foreign Relations, hon. Gethenji or his Vice Chair, hon. Shill kindly respond. Maybe they could be where you say the Kenya Defence Forces are. There appears to be a buzz of flight. Let us get to the next Statement that was requested by hon. Yusuf Hassan. He has written to me, communicating his inability to be present and appreciating his condition and where he says he is, he has requested that hon. Gitari makes the request on his behalf. Those others that desire that a similar thing happens, that is the way it is done. So, hon. Mule, do not come to tell me somebody has told you. They say it through writing. Hon. Gitari is also absent? That is a messenger of doom! Yes, hon. Mwashetani.
Thank you, hon. Speaker. My request for Statement goes to the Chairman of the Departmental Committee on Finance, Planning and Trade regarding the criteria used by Kenya Revenue Authority (KRA) to determine duty payable to imported motor vehicles.
Thank you, hon. Speaker. We can respond to that Statement on Thursday, next week.
Hon. Speaker, it is okay as long as I am incorporated when he is getting the information.
For the second time, the Statement as per the Order Paper sought by hon. Kanyua. The Chairperson, Departmental Committee on Health, kindly note that Parliament sits at 2.30 p.m. on Wednesday afternoon so that you always try to be here at that time. For the second time, yes, hon. Racheal Nyamai. Hon. Nyamai: Hon. Speaker, we will be able to respond in two weeks. I apologise for coming in late.
Yes, hon. Nyokabi.
Thank you, hon. Speaker. That is in order.
For the second time, yes, hon. Neto. The request for the Statement is dropped!
For the second time, the Chairperson, Departmental Committee on Defence and Foreign Relations, Ndungu Gethenji or the Vice-Chair, Bare Shill.
Yes, the Leader of Majority Party or the Majority Whip. Could you undertake to get a response?
Thank you, hon. Speaker. I am sorry. I will convey the message to the Chair of the Departmental Committee on Defence and Foreign Relations. I undertake that the response should be available in two weeks’ time.
Is that okay, hon. Wesley Korir?
It is in order, hon. Speaker. 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.
For the second time, hon. Gitari on behalf of hon. Yusuf Hassan. Hon. Gitari, Parliament starts at 2.30 p.m. on Wednesday afternoon. So, you cannot just drag yourself and come here at 2.45 p.m. especially when you are a messenger.
This is because hon. Yusuf had written officially communicating that you were the one to seek the Statement on his behalf. Given hon. Yusuf’s condition, it is most unfair that you should be late. Really, that is not being a good messenger.
Yes, hon. Gitari. REPORT ON OPERATION USALAMA WATCH
Thank you, hon. Speaker. My apologies to the House for being late. I was chasing the PA to hon. Yusuf so that he could give the Statement. I am sorry for being late.
On behalf of my friend and my colleague, hon. Yusuf Hassan, I wish to seek Statement No.184/2014 as listed on the Order Paper from the Chairperson, Departmental Committee on Administration and National Security regarding the on-going security operations dubbed “ Operation Usalama Watch ”.
Hon. Speaker, this Statement is supposed to come to this House as urgently as possible because of the interest in this matter. So, we will do it in ten days.
Thank you, hon. Speaker. I will convey the message to hon. Yusuf.
Very well. Let us move on to the next Order.
Thank you, hon. Speaker. I beg to move that the Supplementary Appropriation Bill (No.2) (National Assembly Bill No.27 of 2014) be now read a Second Time.
I really do not have much to say because much of what needed to be said was said yesterday when I tabled the Report. I am very grateful for the contribution of the hon. Members of this House, and of course the tremendous work done by the Parliamentary 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.
Budget Office and the Budget and Appropriations Committee, not to mention the National Treasury. We have worked together very closely on this Bill.
Just to highlight one or two things by way of repeating myself, one is that the adjustments that are sought through this Bill have a lot to do with low absorption that continues to be a problem. That problem is, perhaps, caused by a number of things. The one that we would like to highlight that really needs a bit of attention especially from the Executive is the public sector. The ability of the public sector to deliver service – there are questions that now need to be asked about the public service in this Republic. I think time, perhaps, has come to ask ourselves whether we are not over-established and whether we have all the capacities we need to do the work that we are supposed to do as public servants. There seems to be a bit of lethargy in the public service. The Public Service Commission has its job cut out. These are things I said yesterday and I am repeating them briefly. We have a procurement law that is strong on prohibition and rather weak on facilitation. The sooner we review this law, the better. I think we erred on the side of protecting wrong and failed to give this country a law that makes it possible for us to procure services in good time. That has also been a challenge. There is decrease in the Appropriations-in-Aid. However, we are glad that we have the opportunity to support the security sector through this Supplementary Appropriation Bill. We continue to support agriculture and infrastructure. We have been told that the money that is supposed to come in from donor partners does not always come in as much as it should. This might be, perhaps, due to the inability to meet requirements of counterpart funding which tells us that there are liquidity challenges in the way we are seeking to fund our programmes. Hon. Speaker, I feel very proud to lead a team that is not just a team of politicians, but people who love this country. They are people who have proved to me that they are very professional and very programmatic in their thinking. Kenyans out there need to take comfort in the fact the Budget and Appropriations Committee has people who are up to the responsibilities that they have been given by the new law. Hon. Speaker, I beg to move and request hon. Aden Abdikadir, Member for Balambala to second.
Hon. Speaker, I stand to second this Bill. As I do so, I join the Chairman of the Budget and Appropriations Committee in saying that we have come a long way in ensuring that we give the Executive the necessary support. We need to undertake our job as required under the law to ensure that both arms of Government are working concurrently for the betterment of our country. The issue of absorption rate by the different Government agencies has been an issue of concern that the Committee has raised. We have said quite a lot to Treasury to ensure that funds for development are spent on time and that during the budgeting process we do not over-budget for projects which require financing in phases. Now that this Bill is coming to pass, we want to seek efficient service delivery. There are many Kenyans out there in different Government departments that are waiting for the passage of this Supplementary Budget so that they can provide service. Indeed, service delivery should be given priority. Allow me to throw a word of caution with regard to checking on corruption. Government officials need to ensure that funds that are appropriated for 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.
expenditure in terms of development must be targeted for development. We must ensure at all costs that we avoid leakages in terms of corruption. It is for the common good of our economic development that we fast-track and pass this Supplementary Budget so that the much needed development projects can take off so that we move our economy forward. I second.
Thank you, hon. Speaker. I beg to support this Supplementary Appropriation Bill and also thank the Budget and Appropriations Committee. Parliament recently passed the Supplementary Estimates I which reflected an increase of about Kshs65.5 billion for both Recurrent Expenditure and Development Expenditure. Since the approval of those Supplementary Estimates, in the opinion of the Cabinet Secretary for National Treasury, the Government faced additional spending pressure amounting to about Kshs80.7 billion out of which Kshs45.2 billion was for Recurrent Expenditure and Kshs35.5 billion for Development Expenditure. This was developed on the basis of a tight fiscal framework due to suppressed growth projections that were anticipated. For the benefit of the Members, the Supplementary Estimates gave Government the ability to generate new resources. This implies that the new requests from Parliament have to be constrained within the existing provisions in terms of contingency. Even the areas where this Supplementary Estimates II is providing resources are very specific, in that they will help the economy before the end of this financial year. Salary related items in this Bill are Kshs4.5 billion. The ongoing projects have been allocated Kshs30.4 billion. The major areas that require additional funding include pending bills for completed road projects. Those who have finished their bit in the economy have Kshs15.5 billion. Security operations have been allocated Kshs20.2 billion. Of course, we have dam construction, agriculture and food security which have been allocated Kshs6.6 billion. Drought mitigation and emergency relief has been allocated about 2.7 billion. International obligations and State visits have been allocated Kshs1.8 billion. Hon. Speaker, in order to grow and ensure a sustainable growth, this additional funding has been done along the Government policy of rationalization where the resources are given to limited priority areas in order to find the necessary intervention which cannot be postponed before the end of the financial year. The highlights of this Supplementary Estimate also provide how this money will be withdrawn from the Consolidated Fund. I am sure that is well shown in the Budget. We are three or four days to the end of the financial year and we are passing the Supplementary Estimates II today. If the House passes this Bill at the Third Stage and the President assents to it on Thursday then the Cabinet Secretary for the National Treasury is under obligation to pay out this money before Tuesday, which is the beginning of the next financial year. As Jubilee Government, we floated the Euro Bond. The Jubilee Government was asking for US$2 billion. No country, even big economies like Nigeria and South Africa have ever raised Euro Bond to the tune of US$8.7 billion. Hon. Speaker with US$8.7 billion, it shows that investors out there have a serious and fundamental confidence in the Kenyan economy, despite the many security challenges that we have. The countries in Africa that did the same Euro Bond, the best 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.
they could do was US$1.5 billion. I want to thank the team here, the lending institutions and the lead councils for that Euro Bond that was floated in North America, USA and Middle East that raised that. What does that Euro Bond do to the ordinary Kenyans? I hope that the US$8.7 billion will ultimately reduce interest rates from the 19 per cent we have today to 10 per cent. If it comes to 10 per cent, I can say that a lot of the middle class in our country will be able to afford mortgage, and more fundamentally that Euro Bond will create a more stable currency situation in our country. It will bring a stabilization of the foreign exchange in our country. So, hon. Speaker, I think this is a small bill. The amount of money they are asking is not that much and because the Constitution and the law provides for them to bring it, I will ask the National Treasury not to have the habit of bringing Supplementary Estimates every now and then. It is not prudent; it is not the best way to do it. It is not good management. They should not take that route. If we allow them to bring Supplementary Estimates I and II, then they will bring Supplementary Estimate III, IV, V, VI up to X. That is not prudent financial management. For this, you have done it but please let us avoid many Supplementary Estimates within a financial year. With those few remarks, I support.
Hon. John Mbadi.
Thank you, hon. Speaker. I also stand to support the Bill; the Supplementary Appropriation Bill. Yesterday we did pass the Supplementary Budget Estimates II in line with the requirements of Article 223 of the Constitution. I just want to say three things with regard to this Bill. One of the reasons why the second Supplementary Bill became necessary is because of the incapacity of the Government to absorb the budgets that we gave them; the resources that we vote and budget. This has been blamed a lot on procurement procedures. But I want to take a different line and say that one of the reasons why we are not able to absorb all the resources voted for Development Expenditure has a lot to do with our revenue raising measures. I am sure this House is aware that before any Government department spends any money or any resource, there must be authority to incur expenditure. So, the mere budget is not enough to allow you to start the procurement process. Unless you have AIE, then you will not start the procurement process. The AIE will never come unless the Treasury clearly gives out the money to the department. This has not been happening because of our revenue raising issue.
Hon. John Mbadi, we will give you time but I want you to address me on this issue which is on page 2790, the last bit D204 on the Bill. Split that figure into two, 300 and 270. I do not see anything corresponding to that in this Bill. So, is it an oversight on part of both you and the Chair of Budget and Appropriation Committee?
You just mentioned the Kshs.570 billion?
Actually, what we had passed yesterday, which should be captured in this Appropriation Bill, is that Kshs.300 billion is supposed to remain under Recurrent Expenditure and Kshs.270 billion is supposed to remain under Development Expenditure. I remember in the first Supplementary Budget, we took Kshs.570 from recurrent to development. So, we are reversing Kshs.300 billion back to the Recurrent 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.
Expenditure. I will check and if that did not happen, maybe the Chair of the Budget and Appropriations Committee needs to propose an amendment.
That is to suggest, therefore, that the schedule would require some amendments to correspond with what the House passed yesterday.
Yes, so that the Chair of Budget and Appropriations Committee can do that. I was just about to conclude the first statement that I was making. The AIE is delaying because like right now we are talking about the Euro Bonds. Remember, we budgeted to raise money through Euro Bond at the beginning of the year. There was no reason and justification really to delay until a few days to the end of the financial year to raise that money to be able to spend it in the few remaining days. The second point I wanted to make is that there is a concern on the issue of what is happening in the counties. It is high time the two Chambers of Parliament took this matter seriously, especially the Senate. Yesterday I attended a launch of a report by the Institute of Certified Public Accountants, of which I am a member, the public policy and governance committee of that ICPAK has done some research in the counties. What you saw yesterday with regard to the reporting from the CRA and the Controller of Budget is true. There is a feeling in the counties and especially among the county assembles that they have to spend all the money that was voted for the assembly before 30th June, yet we did pass a law in this House, which they should be aware of, that any money voted to the county is safe and they can spend it next year. They do not have to spend it at the moment. I think it is the issue of wastage. We need to look at the counties because there could be some people who are out to frustrate counties and devolution as a whole. Finally, I am just concerned about what the Leader of Majority Party has just told this House. I have heard about it and now he has confirmed it in the HANSARD, that we are raising Kshs.720 billion. I have just translated US$8.7 billion into Kenya Shillings and that is Kshs.720 billion on Euro Bonds. I do not know who has given the Government that power to raise that money. This House allowed the Government, for this financial year, to raise Kshs.135 billion and for the next financial year, Kshs.36 billion. The total is Kshs.172 billion. It is not factual to say that this Government has the mandate and authority to raise Kshs.720 billion. This money we are getting through Euro Bond is not charity. It is money that we will pay back and this House had put a ceiling, the maximum beyond which we cannot pass. So, I am concerned when I heard the Leader of Majority Party mentioning such a huge and scaring figure.
Finally, I am just hopeful that the people who are loaning us this money are actually those who should loan us. I hope it is not those Kenyans who have been stealing money from this country and stashing it abroad. Now that there is Euro Bond to be bought, they are the same Kenyans who are buying it in pretence and are using some foreigners out there to stand in their place. So, you cannot see them; you see funny faces and think they are buying Euro Bond from us, yet it is the corrupt Kenyans who have been stealing from the 1980s. The Anglo Leasing and Goldenberg people are the once who are out there posturing to be buying Euro Bond from us. I hope that we will audit this money to find out the exact origin. Who are these buying--- 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.
What is your point of order, hon. Kamama?
On a point of order, hon. Speaker. Is it in order for my good friend, hon. Mbadi, to cast aspersions on the Government by actually insinuating that those Euro Bonds were bought by political brokers or by Anglo Leasing fellows? The Euro Bond matter was purely a project of the Government and those brokers you are talking about are not there. If he cannot substantiate, he should apologise and withdraw.
Hon. Members, I think we get jittery over non-issues actually. I do not think there is anything wrong in casting aspersions. A Member of Parliament is at liberty to make whatever statement as long as they are within the law. To even imagine that maybe some people, who may have invested in the so-called Euro Bond could be some phantoms, is not entirely un-parliamentary. So, I do not see anything out of Order.
Thank you, hon. Speaker. Actually, I am aware hon. Kamama cannot be among the people I am referring to. The furthest he can invest is Migori.
( Laughter )
I hope that the investors are genuine. That is what I said and really, if they bring the money back to us it is okay, but we could be again giving them interest on the money they stole from us. I am actually hoping and asking that we do proper audit, because I am a Member of Parliament who is tasked with the responsibility of oversight. So, there are no aspersions, I have not said anyone has brought that Bond. I was just expressing myself.
Thank you, hon. Speaker.
Hon. Members, remember you actually debated this issue yesterday and the Question was put. So, you are really just supposed to affirm. Hon. Kigo Njenga.
Thank you very much, hon. Speaker. Whereas hon. Mbadi has the right to speculate, he should also remember that he made an offer and invited people to a so-called treat. Should the offer increase? We still have a House which is ongoing and can validate the offers that are coming. Notwithstanding that, the authority to spend in time improves service delivery. Without authority to spend in time, under-absorption of funds shall continue. Kenyans will not get service in time; neither will development be done in time. What we will fail to achieve if we delay this, is failure to attain economic growth, especially GDP from the current 4.7 per cent to the expected 5.8 per cent or even the over 7 per cent by 2017. This done, we will also have to gauge the financial risk of between the time we pass the Appropriation Bill, 2014, which is before this House and the time we implement it. We need to have our Government running.
I support this because I see some organizations, for example, the Independent Policing Oversight Authority (IPOA), being well funded now to do their work. I also see the Kenya National Commission on Human Rights, the Parliamentary Service Commission, which is actually our Commission and also the Judiciary being made to offer justice in time. I look at also the security which is going to carry a substantial amount of money. Looking at the situation in this country; Mpeketoni, Mandera, Wajir and almost all places, we need to also avail funds to such agencies in order to give services to Kenyans. 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.
More importantly is the national title centre which we all know is going to solve many disputes in this country. The harmonization which will be done between the Ministry of Land, Housing and Urban Development and the National Lands Commission will help our people. If this money would be available, our people would benefit from loans at reduced interest rates. Title deeds will be available on time and people can use them to take loans. In turn, this money will be used to develop this country.
I have noticed that this country is experiencing low rainfall. If you look across the country, the rainfall is not favourable and as a result of this, we are going to have low food and food shortage. We need to have food security. As we reduce our---
( Loud consultations )
Order, Members! Those who are consulting, please do that in low tones. I have noticed majority of those consulting very loudly are the ones who do not have a copy of the Supplementary Appropriation Bill. So, you have no idea of what is being debated because if you were, you would be going through to look at those figures. But because you just walked in on your two feet, that is why you want to just come and begin consultations about what is going to happen over the weekend and such like things. Please, even as the weekend is important, so is the work in this Chamber. So, I want to see a Member walking in with a copy of the Supplementary Appropriation Bill and the Appropriation Bill No.28 of 2014, which we are just about to embark on. That is the business we are supposed to transact now, even as you prepare for the weekend. Please proceed.
Thank you, hon. Speaker. As I was saying, we have experienced low rainfall in almost all parts of the country. The granaries are empty and that would translate into food insecurity. If we have money, then we are able to cater for that. Efficiency monitoring in our parastatals is also well catered for. There is also the Free Primary Education (FPE) and provision of Free Secondary Education (FSE). So, looking at all this, I tend to think that it is high time we urgently passed this to avail goods and services to our people. I support.
Thank you very much, hon. Speaker for giving me this opportunity to contribute to this very important Supplementary Appropriation Bill. First, coming from Kajiado Central, I wish to make a very strong appeal to the Commission on Revenue Allocation. Kajiado Central has been totally marginalised. It is not in the Equalisation Fund and I would like this to be known, that we are a very dry and arid area. The Commission on Revenue Allocation (CRA) needs to know this.
Hon. Speaker, as I support this Bill, first of all, I would like to also commend our technocrats in the National Treasury for negotiating for the Euro Bond which is in the region of Kshs175 billion. It will help this country’s economy to stabilise. It is very important that those who did that have this country at heart.
Hon. Speaker, we are debating this Supplementary Appropriation Bill because the financial year is coming to an end and we have got several services that the Government needs to undertake. These are issues to do with national security, health services, water 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.
and education. The Government cannot fulfill these obligations unless we pass this Bill so that we can move to the Appropriation Bill proper.
Hon. Speaker, with those remarks, I support this very important Bill. Thank you very much.
Very well. Hon. Benjamin Langat.
Thank you very much, hon. Speaker for this opportunity to contribute to this Supplementary Appropriation Bill. This is a very unique occurrence because ideally we should not have any supplementary budget if all is working well. I want to join my colleagues in encouraging our Cabinet Secretaries and their respective Ministries to ensure that their budgets are as accurate as possible so that we avoid two supplementary budgets in the same year. This is a very unique Supplementary Appropriation Bill.
Hon. Speaker, the implementation process has been cited as one of the reasons why this Supplementary Appropriation Bill is coming. We have given the Cabinet Secretary the opportunity to tell us what he plans to do with this budget. I think it is high time as a House we found a way of getting a report at the end of the financial year from the Auditor-General on how money voted in the Budget has been spent. The Cabinet Secretary appears here to tell us what he plans to do with the money, but we never get a report on how exactly it has been used. We need to name and shame the Ministries that are given money and they come and blame the procurement process. Once you have known the process, then you should know how to organise yourself, as opposed to waiting to tell us that the procurement process prevented you from achieving what you wanted.
Hon. Speaker, I think Ministries must be strategic. They must know how to live within the procurement law which already exists. Maybe the Budget and Appropriations Committee and my Committee need to agree and say that if you spend less than 50 per cent or 60 per cent then you are not a serious Ministry. You are letting Kenyans down.
Hon. Speaker, you know failure to spend should be taken as misappropriation because what you are simply saying is that you are holding money which other people would have spent. So, in future we should be able to discourage many supplementary appropriations and ask Ministries to do the right thing.
Hon. Speaker, I want to thank the Chairman of the Budget and Appropriations Committee for working extra hard to bring this unique Appropriation Bill at this particular time. Thank you very much.
Thank you, hon. Temporary Deputy Speaker for giving me an opportunity to talk on this. I am a member of the Budget and Appropriations Committee and I think many things that are being said now were said yesterday. However, I just want to say a few things. Some may sound repetitive but they are not.
Hon. Speaker, we may pass a second supplementary budget but it may not be necessarily a good thing. As I said yesterday, the budget process that Parliament is involved in today is a very intensive and complicated work and if you are not going to do it properly and end up having a first and second supplementary Bill, then it means we are not working properly. So, I think there is need for proper planning, proper 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.
implementation and spending so that the money that is given out is spent and probably just one supplementary budget where money is required when all the money has been spent. However, to move money around because it is not spent is not a good thing and it is not good for the function that Parliament has gotten into now.
Hon. Mbadi indicated the processes of authority to incur expenditure and procurement which you cannot start until you have money and so really that has been a hindrance. I know that, but that is particularly worse when we are talking of the supplementary budget today when we only have a few days and then we cannot spend any more.
Hon. Speaker, ideally by now going by the old habit, perhaps, there is already a letter instructing Principal Secretaries to stop spending and then here we are actually saying there is money to be spent. I know at that time we used to be disturbed. The money is coming now, what are we going to do with it? The procurement processes are such that it is not easy to use it. What happens is that people go on a spending spree on things that are easy to do but not probably necessarily of benefit. So, I think I wanted to bring that point up so that now that we are planning, it should be done properly. Parliament has now a different function from before.
Hon. Speaker, the other thing I will say is that with the budgeting function, it does appear to me that we also need a monitoring function because the budget process now is programmed based on targets. Auditors will tell us where money was spent according to the law and how it was supposed to be spent. The auditors will not tell us whether the targets for which we gave money have been achieved. When Parliament is now budgeting, it must have the need to also know whether the targets have been achieved or not. I think those are important points. I can see my Chairman is looking at me and probably I think this will go down in our reports that will come later.
Let me also say one thing about the Euro Bond. I was opposed to payment but the issue is: who are we paying? What were we paying for? We passed the payment as a Committee although some of us dissented but now the money has come and I think it is good for the Budget. However, I think an impression is being created that this money is not a loan. People must know that this is a loan that Kenyans are going to pay for. So, as we celebrate I think we are called upon to actually be more meticulous in the spending of this money so that we get the returns and pay for it, otherwise it can give us more problems.
Hon. Speaker, with that I support.
Hon. Members, I am urging you to remember that yesterday you debated quite at length the Report of the Budget and Appropriations Committee on this Supplementary Appropriation which is now being actualised through this Bill. This is because I can hear most of you are saying the same things which you said yesterday and I am sure the HANSARD will look very interesting because those who said that we should not do a first, second, third or fourth supplementary are saying it again today. So, it does not become any neater to have it repeated severally. Hon. Letimalo.
Hon. Speaker, I thank you for giving me the opportunity to contribute to this debate.
I want to start by commending the Chairman and the Members of the Budget and Appropriations Committee for a job well done. I will comment on only two areas. 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.
Specifically, I would like to refer to Vote 133 (Recurrent Budget), which provides for the Ministry of Interior and Coordination of National Government. This is a very large Ministry with many departments. I am particularly concerned about two departments. One of them is Policing Services, which I would like to link with security services.
Hon. Speaker, we realise that lately, we have encountered a lot of insecurity in the country, in form of terrorism, inter-clan conflicts, cattle rustling, et cetera . So, I want to appeal to the Ministry that oversees Policing Services that it is important for them to take into account the services being provided by the National Police Reservists, who actually supplement the efforts of security personnel. Persons serving as police reservists should also be given allowances because this is a very critical unit, specifically in the pastoral areas.
The second point is about the National Registration of Persons Department. The department has the responsibility of issuing national Identity Cards (IDs) to the youth and other people who have not yet been issued with IDs. The youth are attaining the age of acquiring IDs on a daily basis. However, the allocation made for this specific institution is normally low to the extent that you find officers serving in the Department idling around when there are very many youths who are in need of the national ID. Therefore, it is important for the Ministry concerned to allocate sufficient funds for the Department, so that the youth can be issued with IDs.
Hon. Speaker, my concern is on Vote R153, which relates to the funds allocated to the Department of Livestock. In the months of April and May we expect rains but the rains this time round have failed. This has affected both farmers and livestock keepers. Probably, farmers are a lot better as compared to livestock keepers because farmers can store their harvest until the rain comes. On the other hand, livestock keepers are disadvantaged because their livestock gets weaker every day. The only way the Government should have assisted livestock keepers, particularly now that we are experiencing severe drought; is to organise for off-take exercise, where livestock are bought when they are still healthy, so that livestock keepers do not lose a lot of their livestock. I am very concerned that the amount of money allocated is only Kshs1.8 billion. The Ministry has very many other departments. So, this is one area where the Budget and Appropriations Committee should be able to give a lot of consideration in future. Thank you, hon. Speaker.
Yes, hon. Ferdinand Wanyonyi!
Thank you, hon. Speaker. Yesterday, I was the only one who opposed the Supplementary Budget because only four months ago, we had a similar thing, which we approved. We now have another one. I have been asking myself since yesterday, why we have this particular second Supplementary Budget. I said that it is a trend that is not acceptable because somebody somewhere is not working. If we had this once, maybe, one would understand.
Hon. Wanyonyi, since you said the same yesterday, there is no need of repeating it. Even if you repeat it, it will not make a difference.
Hon. Speaker, I am just building up my case. 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.
No, no, no! You cannot just tell us what you said yesterday with respect to the same issue. Be alive to Standing Order No.186 on tedious repetitions and irrelevances. So, please, just proceed but do not repeat what you said yesterday. Yes, hon. Mulu! Hon. Mulu: Hon. Speaker, I rise under Standing Order No.95. Listening to the discussion and bearing in mind the fact that we actually discussed this same issue yesterday, I move that the Mover be now called upon to reply.
Seeing the mood of the House, I will put the Question.
Yes, hon. Mutava Musyimi!
Hon. Speaker, I wish to thank the hon. Members for their contribution to the debate. Allow me to just make two points.
The first one is on the issue of the cost of the Euro Bond. Let me just assure hon. Members that the facility that we are getting is cheaper by the mile. If we were to access that money from the domestic market, it would have enormous negative impact to our economy. The bank interest rates would go through the roof. It would also affect the strength of our currency negatively. So, this is something for which we must commend the President and the Executive generally. We need to be assured that this is in the best interest of the country. Hon. Speaker, regarding the Anglo Leasing payments, as I said yesterday, the payment was based on fraudulent transactions. We know that but in Christian theology, there is something we call “the lesser of two evils”. This was not a choice between good and bad. It was a choice between bad and worse. Failure to pay would have had far worse implications for this country. So, we commend that decision and support it. My second and final point is that when the Cabinet Secretary, National Treasury, appeared before my Committee last week, soon after the issue of the Euro Bond in the United Kingdom, we asked him: “What did the investors say about Kenya? What were they concerned about as they sought to invest in Kenya”. He mentioned three things. The first two did not surprise me much. Obviously, we are all concerned about the issue of insecurity. The investors are concerned about the insecurity situation in the country but obviously, they see it as a passing thing. If they saw it as something that would be permanent, obviously, they would not invest. So, we need to sort out the issue of insecurity for our own children and ourselves. The investors also expect us to put this matter to bed as soon as possible. Hon. Speaker, the investors were also concerned about the financial deficit. We need to be aware of this as we deal with the Supplementary Estimates and other expenditure. Finally, the thing that really caught my attention is that they were concerned about devolution, and I thought these people really do their homework. Why would they be concerned about devolution? I then remembered the conversation I had with Christine Lagarde, the Managing Director of the International Monetary Fund (IMF). Her concern was that we need to be very careful how we roll out devolution. 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.
As I said yesterday, I am personally not worried about the capacity of this House to play oversight role on the Executive but I am very concerned, like all of us about the capacity of the Members of the County Assemblies (MCAs) to play oversight role on the County Executives. So, we need to be very careful as we implement devolution, to make sure that we do not just give money out for other people to spend in blatant extravagance when services are needed by our people. Hon. Speaker, with those remarks, I beg to reply.
Hon. Members, we are now in the Committee of the whole House to consider the Supplementary Appropriation Bill (No.2) (National Assembly Bill No.27 of 2014).
There is an amendment by the Chair of the Committee.
Much obliged, hon. Chairlady. I beg to move:- THAT, the First Schedule to the Bill be amended as follows:- (i) in item Vote No. D204 by deleting the figure Kshs570,000,000 and substituting therefor the figure Kshs270,000,000; (ii) amending the total figures accordingly. Thank you, hon. Chairlady.
Did you read the First Schedule or the Second Schedule? It was supposed to be the First Schedule.
First Schedule, hon. Chairlady.
It was the First Schedule. 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.
There is another amendment by the hon. Chairperson.
Much obliged, hon. Chairlady. I beg to move:- THAT, the Second Schedule to the Bill be amended as follows:- (i) in item Vote No.R204 by deleting the figure Kshs570,000,000 and substituting therefor the figure Kshs300,000,000 and the total figure be amended accordingly; (ii) amending the total figures accordingly. Thank you.
Hon. Mutava Musyimi, I hope hon. Members understand the import of your amendments.
Hon. Chairlady, I beg to move that the Committee doth report to the House its consideration of the Supplementary Appropriation Bill (No.2) (National Assembly Bill No.27 of 2014) and its approval thereof with amendments.
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.
Hon. Speaker, I beg to report that a Committee of the whole House considered the Supplementary Appropriation Bill (No.2) (National Assembly Bill No.27 of 2014) and approved the same with amendments.
Hon. Speaker, I beg to move that the House doth agree with the Committee in the said Report.
Hon. Speaker, I beg to move that the Supplementary Appropriation Bill (No.2) (National Assembly Bill No.27 of 2014) be now read the Third Time.
On a point of order, hon. Speaker. I have just noticed a small mistake. We have been transacting this Bill on Order No.11 as Bill No.28 and the one that we have just finished as Bill No.27 of 2014. But in the actual Bills that have been published or gazetted, this particular Bill, the Appropriation Bill, 2014 is actually Bill 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.
No.27 of 2014. The one that we have finished is Bill No.26. So, for record purposes, this Bill that we are just about to transact under Order No.11 should be National Assembly Bill, Bill No.27.
Hon. Ng’ongo, according to the register kept in the Assembly, the number appearing as No.26 on the Bill is the one from the Government side. But the one held here reads No.27. So, it is correct that the one we have just passed is correctly within the records of Parliament as Bill No.27 and that the next one correctly - not what it appears as in our records - as No.28 of 2014. It had been checked and confirmed.
Hon. Speaker, I beg to move that this House adopts the Appropriation Bill, National Assembly Bill No.28 of 2014.
Upon approval of the Budget Estimates by the National Assembly, my Committee is charged with the responsibility of introducing the Appropriation Bill in this hon. House pursuant to Section 7(h) of the Public Finance Management (PFM) Act, 2012 and Standing Order No.207(3)(d). The Budget and Appropriations Committee Report on the estimates of revenue and expenditure for the Financial Year 2014/2015 was approved by this House on 11th June, 2014. In the Report, the proposed amendments to the 2014/2015 Budget for the National Government, Parliament and the Judiciary were adopted and the attached schedules became the basis for appropriation of the 2014/2015 Budget.
As required under Article 221(6) of the Constitution which bears reading and I quote:- “When the estimates of national Government expenditure and the estimates of expenditure for the Judiciary and Parliament have been approved by the National Assembly, they shall be included in an Appropriation Bill, which shall be introduced into the National Assembly to authorize the withdrawal from the Consolidated Fund of the money needed for the expenditure, and for the appropriation of that money for the purposes mentioned in the Bill.” That is what we seek to do today.
I now, therefore, present to this House the Appropriation Bill, 2014 which seeks to authorize the withdrawal from the Consolidated Fund of the money needed for expenditure and the for appropriation of that money for the purposes mentioned in the said Bill. The Appropriation Bill, 2014 is a representation of the amendments adopted by this House in the Report on estimates of revenue and expenditure for 2014. The Appropriation Bill, 2014 proposes to allow the National Treasury to issue Kshs950,663,361,045 from the Consolidated Fund Services. This includes Kshs628,331,601,031 for Recurrent Expenditure and Kshs332,531,760,014 for Development Expenditure. The Appropriation Bill, 2014 also makes provision for Appropriations-in-aid of Kshs235,714,894,594. This includes Kshs61,708,733,875 for Recurrent Expenditure and Kshs174,006,360,719 for Development Expenditure.
Some of the flagship projects allotted funds in this Budget include:- 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.
(i) The Kshs66.2 billion for policing services, Kshs71.3 billion for the Kenya Defence Forces and Kshs17.44 billion for the National Intelligence Service That is a message to the Executive arm of the Government that this National Assembly wants to see the issue of security sorted out. (ii) Kshs22 billion for commencement of the Standard Gauge Railway (SGR) from Mombasa to Nairobi. We said a lot yesterday and it is important that, that project starts. (iii) Kshs3.5 billion for the first phase of the irrigation and food security project in Galana. I do not need to say much. We need to bring the cost of food down. (iv) Kshs13.5 billion for free primary education. (v) Kshs28.2 billion for free day secondary school education. I think Members of my Committee know how passionate I am about free primary education. I think if we do not fix access to good education in our public primary schools, I do not think there will be much in the country to talk about in another 20-30 years. The nation will be so divided between the rich who take their kids - like all of us here do - to academies. They then leave other people who are less fortunate to struggle to access education. This is an effort to bring into the net a wider section of our people. There is Kshs4 billion for free access to maternal healthcare and we thank the First Lady for leading from the front on this issue. I do not think the matter of running in the London Marathon all those miles was a small achievement. I think we all commend her for that, and we are glad to see that we are able to put in money for maternal health care, Kshs34.4 billion to cushion vulnerable groups in the society; Kshs3.4 billion for Equalization Fund; Kshs2.03 billion for affirmative action. On social development and I think we are all glad that we can support our colleagues in this honourable House from the county. Through my Committee, and the Report that we gave, we have made tremendous contributions to this year’s budget. I wish to mention a few of those issues. First of all, of course it is the Constituency Development Fund. We have increased Constituency Development Fund by five billion to raise it to Kshs33billion in the next financial year. It is important to indicate, that the extra five billion that we have added, the Committee has taken a position that this matter be given to Constituency Development Fund as conditional grants so that, through Constituency Development Fund we can put all the money in improving and escalating infrastructure in public primary schools. That is where that money will go. We are also allocating Kshs1.2 billion for construction of Ronald Ngala Utalii College. One billion for Narok – Maasai Mara road, this is very important for our economy and tourism. Kshs1 billion for the completion of stalled dams - Umaa in Kitui, Kiserian in Ngong, and Chemasus in Eldama Ravine. Of course the other dams have already been completed. The Mariba Dam in Machakos and Badasa Dam in Marsabit. We are allocating 700million for Kenya wildlife service for ranger recruitment program and also money for special economic zones and five billion for strategic response to public initiatives. My Committee has noted that a perennial hindrance to the full implementation of budget is the absorption capacity. We have said enough of that; I think we need to fix this problem. As I said earlier, I think the minute you begin to see a trend where the recurrent expenditure exceed what goes to the development component, then you have a deliberate deficit as an institution. I think we need to address this matter seriously, and it 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.
relies upon the Public Service Commission to really look at our public service and its capacity to deliver programs to our people. In this regard, the National Treasury also needs to review the Public Procurement Law. We have talked about that today so that it is facilitated and not prohibitive, creating unnecessary bottlenecks. I wish to thank as I close, the Members of my Committee again, your office for valuable advice from time to time, and of course the Parliamentary Budget office with whom we have worked closely. I also thank the National Treasury, I am aware that we are going through a transition and it is quite obvious to me, that we need to know how to work together during the highlights given by the National Treasury Cabinet Secretary in this House, not too long ago. I did talk about the importance of understanding that the organs of State need to work in a complimentary and interdependent manner. Much was said about separation of powers when we were struggling for a new Constitution, I think we need to remind ourselves, that if we are going to deliver to our people, the Supreme Court needs to work closely with the Court of Appeal. We are beginning to see noises. The National Government needs to work complimentarily with the county governments. The National Assembly needs to work in a complimentary manner with the Senate. This National Assembly with regard to budget process needs to work closely with the National Treasury. We want to assure the National Treasury that, we are willing and ready to work as closely with them as possible in a facilitative way and working with them as colleagues. I therefore wish to thank all of us and look forward to hearing the comments from this Floor of these honourable Members as they contribute to this Bill so that we can improve our capacity as a committee. As you have probably have noticed, we are very by partisan in the way operate in the Committee. We are more professional and program people when we sit in that Committee than politicians. I give much credit to all the Members of the Committee; we have been able to do a lot for this country. As a matter of fact, we have decided, in the interest of efficiency, we want to do public hearings in September, October, and November using the county platforms so that we cover the entire country. By the end of this year, we shall know what the priorities are as a Committee, so that we can engage the National Government early enough, so that we are not doing catch up as indeed has been the case. I beg to thank you for giving me this opportunity to move this Motion and now with your permission I beg to request you to allow hon. Member for Mbalambala hon. Abdikadir Aden to second the Motion. I thank you.
Thank you very much hon. Speaker, I stand to second this very important Bill. Allow me to give my input. As was very much in details said by the hon. Chair of the Committee on Budget, it has been a long process; it has been a process that has seen the Parliamentary Budget Committee work tirelessly for the whole month of May and beyond in order to comply with the Constitutional timeline as we are doing today. The passage of this Bill as we intend to do today is indeed in compliance with the law and it is a requirement, so that we can be able to give the country an ability to move forward into 2014/2015 Financial Year. I am very happy to say, in so doing our work, this Committee has complied very strictly with the existing laws and indeed with the Constitution under Article 221(6) to ensure that what is presented before the House here as an Appropriation Bill, is indeed what was passed as estimates in this House and nothing else. In passing this Budget, the budget in totality including what has been 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.
appropriated or what has been given to the Division of Revenue Bill to the counties is a historic budget as I have said before. It is a budget that has seen Kshs1.8trillion being set as a budget for this year. Indeed, it is one that if compared to the other regional economies will show that indeed is a budget that is bigger than a combination of a number the budgets of the countries that are neighboring us. We have given very particular attention to our security. The Chairman had mentioned it earlier, I want to say, that this sends a very strong message to the fact that this money first of all which is being appropriated or being given to the different departments is hard earned money coming from the tax payer of the Kenyan society or a borrowing that has been done on behalf of, or an obligation that has been made by the Government on behalf of the people of Kenya who must pay back those monies. It is not money that has been earned simply. It is very hard earned money and we are saying that when we give all these billions over sh70billion to our security forces and additional 17billion to our National Intelligence, this indeed says that Kenyans are saying, if what you need is the resources to enable you protect us, and then here it is. It is now an obligation upon the systems of the security of this country to ensure that this money is well utilized and that peace and security is restored in the different parts of this country. Hon. Speaker, Kenyans’ lives as you have seen have lately been under a lot of threat. If it is resources that have led to late response to save the many lives of the victims in Mpeketoni then this Budget sends a very strong message by telling our security forces that here is the very hard-earned money, the largest portion of this Budget, so that they can protect us.
This Budget also addresses a number of other issues that are of importance to our security forces. That is the issue of housing to the Police Force. This has also been budgeted for and it goes a long way to say that Kenyans are committed to stand by their security forces so that they can do their job well.
Recruitment of five thousand teachers has been budgeted for this year. Considering the national demand, I agree that this is far below what we need as a country. However, it is a step in the right direction for this Budget to cater for the recruitment of the 5,000 teachers.
The Constituency Development Fund (CDF) has shown tangible results. I can proudly stand here and say that majority of Kenyans today and even in the 2014/2015 Financial Year have felt the effect of CDF more than that of the county governments. I can say this with authority.
This is certain in my constituency and in my county. I am sure that that if I compare notes with my colleagues, I will find that the same scenario prevails in all other parts of the country. This, indeed, shows that by allocating adequate resources to the CDF, we want to target specific development. As you know most of the money or 90 per cent of the money under the CDF is allocated directly to development.
Hon. Speaker, we call for discipline in spending this money that has been appropriated to the different departments of the Government. I think this has been over- emphasized. The dragon of corruption must be slain. We must seal the loophole in our 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.
economy because it is the unfortunate thing that continues to bog down this economy and we must slay it. We must emphasize on discipline among the spending agencies across the country.
We have seen the overconfidence the rest of the world has in our economy when we floated the Euro Bond. It will be unfortunate if we, as Kenyans, do not stand tall and ensure that we slain this monster called “corruption” so that we can endear our economy to investors out there so that they can invest in our country.
The public hearings have been given adequate attention in this Budget. I must say that it is a Budget that has been prepared after many public hearings were done; when people in Mbita made an appeal for what they needed; when the people in Garissa made an urgent appeal for what they needed and when the people of Maralal said that they had no water in their town. These people have been given adequate attention in this Budget.
I am very proud to represent Balambala Constituency. The people of this constituency and the people of Garissa County, in last year’s budget, asked for electrification of the only sub-county in Garissa County which did not have electricity. Under this Budget, I am proud to say that, that sub-county will get electricity. The living standards of the people of that county will now be at par with that of other Kenyans. This is, indeed, one aspect that makes me very proud.
Effective tax collection is what we need from the Treasury. There are many loopholes in terms of inefficiency in tax collection. It does not mean that we want to increase tax. I strongly believe that if we effectively collect taxes as required from the different places, seal those loopholes and do away with the cartels that have been created to loot our coffers by evading tax this country will be in a better position to finance its budget.
As I end, I send a challenge to our county governments which we have allocated Kshs226 billion. I call on our colleagues, the county assembly members, to stand firm in their budget and appropriation committees and put each and every county through very strict budgetary processes so that we can get effective devolution of resources that we have allocated to the counties.
Hon. Speaker, with those very many remarks, I beg to second this Bill.
Thank you, hon. Speaker for giving me this opportunity to contribute on this Bill. Indeed, I must support my colleagues in the Budget and Appropriation Committee for the amount of effort and time they have put on this work. This is particularly my Chairman.
Having listened to my colleague, hon. John Mbadi, I recommend that one of these days I can give him tutorial on finance because I think he is an expert and authority in accounts.
All said and done, I would like to say that this Bill has addressed some of our most concerns in the country. We have been having challenges and you all know what has happened in the last three months. We have experienced insecurity in Mpeketoni and the northern part of Kenya. It gives me a lot of encouragement to see that in this Bill, we have increased the allocation to security to be able to address some of the concerns like 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.
the police housing, insurance and equipment. So, we look forward to see some improvement in the way our security system operates.
It is also good to notice from the Bill that we have significantly increased the allocation of money in food security. As you know, an ordinary Kenyan spends over 43 per cent of his or her income currently to put food on the table. In order, to bring down the cost of living in this country, we need to invest more on food security so that can lead affordable lives and probably manage to save.
Hon. Speaker, we have also seen an increment in the allocation of infrastructure. These are roads, the standard gauge railway, the bridges, the airport and not to mention the pipeline as we need to prepare to be able to harness the recently discovered oil in the northern and the coastal regions of Kenya.
It is also encouraging to see that we have realized the importance of having a very good education system having allocated more resources on primary and secondary education. We have also had free maternity for our women in line with the Jubilee Manifesto.
Hon. Speaker, it is also very encouraging to see some allocation of funds. We have been talking about special economic zones for some time. I think it is about time as a country we walk the talk and put some resources to special economic zones.
I have been listening to Members contributing on the benefits of Euro Bond and it is important for us as a country to look inwardly and start appreciating the kind of country we have. We have seen investors out there expressing a lot of confidence in our country and putting in money in our country in excess of US$8.9 billion. I am not sure that some of these reputable investment banks obviously have internal mechanism of being able to do their due diligence. So, it is very unfortunate for us, as politicians sometimes to doubt when we hire world class experts in financial advisory services. I am sure J.P. Morgan could have done due diligence. I am sure that they must have done their KYC to be able to conform to different financial regulatory environment that they operate in. So, for us to allege that some of this money is dirty money from the foreign accounts is very unfortunate especially after we have seen the confidence those investors have expressed. It is important that we realize the benefits of raising money out there. One of the biggest benefits is benchmarking for our local companies. Any company in Kenya can access the financial markets of the world not to mention credit rating and other benefits. I am sure hon. Mbadi could also be a beneficiary of some of these initiatives. I am sure if has a mortgage then it could be cheaper to service it than before. So, we are all winners in this matter and we appreciate. We hope the Government of Kenya will consider externalizing our domestic debt. Even this financial year we could look at the possibility of doing another bond, maybe, an Islamic compliant bond so that we access cheaper financing for the benefit of all Kenyans. With those few remarks, I beg to support. Hon. Speaker: Hon. Members, you will allow me to follow the list. I notice that there are very many requests. Some of you who may have been here for some time, but you decided to take your time before you make requests. So, you must allow yourselves to suffer the consequences of your indecision. So, I will follow the list of people as they put their requests here. 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.
Thank you, hon. Speaker for your indulgence and also for taking that line because there are those of us who sit here for four hours and others just walk out and come back to get an opportunity to speak. I stand to support this Appropriation Bill, 2014. I thank the Committee for doing a good job and bringing this Bill before the House so that we pass. Before we came to this Bill we were discussing the Supplementary Appropriation Bill in which we talked about adding funds for the year 2014/2015. It is a challenge to the recipients of these monies especially the Ministries and Government Departments which use this money during procurement to avoid many supplementary budgets coming to the House. Those who receive this money take time in utilizing this money. At the eleventh hour they come to the House seeking supplementary budgets. They are most times unable to spend that money and if they do then they do so haphazardly as you may notice is the case in our counties currently. They are running up and down the globe so as to spend the money without really putting it to proper use. As a House, we will do our best to pass these Bills, but as the money is disbursed then let it be utilized for the benefit of the mwananchi . Allow me to mention a few things that have caught my eyes especially the security issue. This has been a thorn in our flesh and it still is. The funds that have been allocated to that department should be put into proper use so that we can purchase necessary equipment required by our security personnel so that they can safeguard our citizens. When massacres occur in some part of this country officers are deployed there without the necessary equipment. These officers stay in the bush because they do not have housing facilities. We cannot expect much from them! They are also human beings. They need the necessary equipment and so this money must be utilized for that purpose. Education has been a problem in this country. We lack teachers in our schools. Even the 5,000 teachers yet to be employed will not be enough. As much as we are bringing in 5,000 teachers there are others who have left the service through natural attrition and other factors. We need this money to be used in the employment of more teachers. Only that way will we educate our children. There are few children in the country who are fortunate to attend good schools and so they perform well; we expect they will be the leaders of this country. However, the majority of children still do not access education. With teachers on the ground and proper allocation of money, I believe we shall promote this country as far as literacy is concerned. Some of our constituencies have only one road running across them; the others are pathways which are used by animals or motorbikes. I hope that the Cabinet Secretary in charge of Transport will use this money properly so that the Motion that we passed in this House of ensuring that each constituency has, at least, 20 kilometres of tarmac every financial year becomes a reality. This should not be a goose project or something envisaged to be. This money should be disbursed down there so that we get roads. We need security roads in places where we have problems with bandits and rustlers. The security roads will help us follow the attackers to their hideouts. In the marginal areas, for example, in Igembe Central, when our cattle are stolen we are forced to use a helicopter because there are no security roads. Such roads need to be opened using the money that has been allocated. I wish to conclude by saying that when we were discussing the Supplementary Appropriation Bill somebody said that there are people who either do not plan for the 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.
money, or they do not spend it well. We would like Treasury to make proper follow-ups so that this money is spend well. The Kenya Revenue Authority (KRA) should also strive to collect enough revenue and at the right time. The KRA should follow up on taxpayers so that we have money to spend. Maybe an institution of inquiry could have been allocated money but at the time they want the money it is not there to spend. So, let us avail the money when it is required and if there is a failure then we lay the blame on poor spending or usage of the money and not really the source. With those remarks, I beg to support.
Thank you, hon. Speaker. I rise to support this Motion and I thank also the committee for a job well done. The Budget and Appropriations Committee, has been very resourcefully in informing this House, whenever financial matters are brought and that is very encouraging.
However, I would like to just request the Budgets and Appropriations Committee that as they do this public hearings on every Financial Year, I know they have limitations here and there, but it would be good for them to try to really spread themselves across the country, such that at least they get some feelings from a diverse clients. Not necessarily, trying to concentrate on a few, I know they have only done in these two Financial Years, 15 counties. They still have a long way to go. I want to take the words of the mover of this Motion, he said by September-October, they would like to have covered all the counties. In that regard, I am cognizant of the fact that for the last two financial Years, the Budget and Appropriations Committee has not visited Kajiado Country. So the views of the people of Kajiado Country, in terms of budget formulation, have not been taken on board so far.
Hon. Speaker, let me go to specific votes and most, let me talk of Development Vote and not Recurrent Vote. I am impressed that there is some additional funding in this coming Financial Year on D105 that is the Ministry of Foreign Affairs and International Trade. You will realize that in the Jubilee administration, international trade has been put under the Ministry of Foreign Affairs. This is because of the most important aspects of international trade in diplomacy. Therefore, it is good that this Ministry gets more funding as it has been done this Financial Year, for us to first of all open new missions, in areas that will add economic value, to the economy of this country.
It is also good that our missions abroad are refurbished. Several embassies are in dilapidated state and everything is perception. If the representative of this country abroad, does not have a good face, that is already marks lost, in terms of international trade and international representation. D107, this is the vote on the National Treasury. First, of all let me take this opportunity to congratulate as my colleagues have said, the National Treasury for the very able way they have run our economy in these two Financial Years. That has been evident by the way everybody has been talking about, the Euro Bond, which has really given the Kenyan economy a vote of confidence.
This afternoon, His Excellency, the President gave a State Address of the National economy and the rating of our economy stands at B plus and that is very important. Therefore congratulations to those running the National Treasury. However, in this budget, in the coming Financial Year, beginning, 1st July, 2014, on the issue of procurement and the mover of the Motion has talked about it. There is need to simplify 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.
the rules of procurement for ease making of business. Actually, the current procurement rules are in a way contributing partially or in totality---
( Loud consultations )
Hon. Speaker, there are loud consultations, among Members.
Especially, the Members who are walking all over. Hon. James Rege, please consult in low tones.
I was talking of the need to simplify procurement rules. This will help us in the ease of making business. Partially or at a large extent, this procurement rules, the way they are now are actually the cause of low absorption of funds, both at the national and county levels. So there is need to simplify them, actually, they are even impeding the implementation of government projects. Take for instance the Laptops, the standard gauge railway and the security tender awarded to Safaricom the other day, all of them have faced legal challenges and this is all because of procurement rules. Therefore, if the Budget and Appropriations Committee as a representative of this House can help the National Treasury and other Government essences to actually make those procurement rules a little bit relaxed for easy implementation of this projects.
D115, this is the Ministry of Energy and Petroleum, the only thing I want to say about it is, the rural electrification projects that have been ongoing all over the country. There is need for the Committee on Energy, Communication and Information to look into it. This is because the cost of doing this rural electrification projects is going high and we cannot really go far with the cost of living if the cost of doing this electrification project is high. No.2 again, the committee on Energy, Communication and Information, needs to look at some of the stalled projects or slow pace of implementing this rural electrification projects. This is worrying on the ground and the Ministry of Energy and Petroleum needs to do something to speed up the implementation of those projects.
Even the issue, which was a flagship of the Jubilee administration of connecting all primary and secondary public schools for purpose for boosting education and for the primary schools, for purposes of good usage of laptops, the Ministry of Energy and Petroleum has not done much in ensuring that this is implemented. My last two points are on D133, this is the Ministry of Interior and Coordination of National Government. I really, do not want to say much, other than to add to what my colleague, the Member for Dagoretti South has said, that the increment in the allocation to this Ministry, is so important for modernization of equipment and projects and increase of personnel. We need to bring down the ratio of police to citizens in this country, to even lower than the internationally accepted standards if possible. There is also need to use this fund and look into their welfare and improve on their mobility, both on air and ground, to be able to handle this insecurity problem. Still on that, now that His Excellency, the President has put the KWS, Kenya Forest and other armed uniform forces under the command of the Inspector General (I-G) as far as security issues are concerned, with this fund, we want to see this menace of poaching come to an end. We want to ask the I-G, now that KWS rangers are under him in terms of security operation, this poaching is really killing our tourism industry and something has to be done about it. 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.
Finally, on security, it is also the high time to look into ways of incorporating the county government into security projects and programmes for ease of management of security. My final point is on D143, which is on the Ministry of Transport and Infrastructure, there was Motion passed by this House asking the Government to tarmac at least a 20 kilometer road in every Constituency. It is the right time now for the Ministry of Transport and Infrastructure looks into ways of implementing that Motion. Even if it means doing it in phases, such that by 2017, maybe several or all constituencies have a 20 kilometer road, as per the Motion or resolution of this House. Hon. Speaker, I beg to support.
Hon. John Mbadi
Thank you, hon. Speaker. I also rise to support the Motion that is asking this House to approve the Appropriation Bill of 2014. I want to start from the fact that this House debated and approved the Budget Estimates for 2014. We did it in line with the Constitution and having passed the Budget Estimates, what has been done is just to consolidate them and put them in the Appropriation Bill and that is what the law requires. I wanted to read the Constitution, so that the National Treasury, must also be alive to one fact that the budget process is spelt out in the Constitution and it should be respected as it is. We have been cooperating very well as a committee, through the Chairman, and with the National Treasury and we hope to still continue cooperating. Even as we do that, we must respect the Constitution. First, the law requires that two months to the end of the Financial Year, the Cabinet Secretary responsible for finance, must bring to this House, Budget Estimates for National Government. Besides that there are Budget Estimates for Parliamentary Service Commission and also the Judiciary, those two other Arms of Government, bring their budget to Parliament independently. What is required from the Cabinet Secretary is to give us his opinion within the month of May, which he did. After that a Committee of this House, which is the Budget and Appropriations Committee, must seek, the opinions of Kenyans and go out there. That is a Constitutional requirement and not something that we do because we like, but because it is a constitution requirement. Once, that is done then this House discusses and reviews the report of the Committee with a view of approving or rejecting, which this House did. So then what happens after that takes us to Article 221(6) of the Constitution that when the estimates of national government expenditure and estimates of expenditure for the Judiciary and Parliament have been approved by the National Assembly, they shall be included in an Appropriation Bill, which shall be introduced into the National Assembly to authorize the withdrawal from the Consolidated Fund of the money need for the expenditure.
Hon. Speaker, therefore what that says is that the Treasury has all the time to engage with the Budget and Appropriations Committee before the estimates are passed by this House. Once the estimates are passed by this House the law requires that that is what should go into the Appropriation Bill. If you do not that you would be acting unconstitutionally. I know there is a provision in the Public Finance Management (PFM) Act which requires us to balance the reduction with the increment but that is an Act of Parliament. The Constitution is superior. 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.
So, hon. Speaker, I am raising this matter because I know that we gave the Treasury some time to come and harmonise with us the estimates that we approve vis-a-vis their original draft of the Appropriation Bill. Unfortunately the Treasury did not meet our deadline. Deadlines are deadlines and we cannot wait. However, there is still time for the Treasury to engage us to fill the Budget gap. I know there is a Budget gap of about Kshs17 billion. However, what was annoying was that the Budget gap was coming according to Treasury because of us. Hon. Speaker, you remember in the Budget Policy Statement (BPS) we passed Kshs33 billion to go to the Constituencies Development Fund (CDF). The Treasury decided on its own to reduce it to Kshs28 billion. There is no justification for this. They are increasing money for other Ministries like that of Labour. They give more money and then when it comes to the CDF they reduce its allocation. So, what we said is that they have to look for this Kshs5 billion because that is what went into the BPS.
Hon. Speaker, another Kshs5 billion was because of the Parliamentary Service Commission (PSC). The law requires PSC to bring an independent budget to Parliament and not through Treasury and, therefore, we should tell the Treasury that they are not over sighting and perfecting the PSC. It is the work of this Parliament and so we told him that we will not accept the Kshs5.2 billion that you are reducing and we will take it back because it is not your job.
So, hon. Speaker, finally, remember when we go out there to listen to the public and hear their concerns and what they consider as priority projects, we are not going there to entertain ourselves. We go there so that we incorporate some of those issues in our Budget. I want to give you an example. Last year we went to about seven or eight areas and those areas had priority items. We took number one priority item in every area we visited. We did the same this year for eight. So, that is 15 in total. We decided that the Narok-Maasai Mara Road will be brought on board. It is a very important road. We decided to give Kshs1 billion for that road through the committees. Is that not a good thing? We did that through what we are calling Public Hearing Allocation which we are putting under Treasury.
Hon. Speaker, there are others which include for example my neighbouring constituency of Mbita. We have a hero called Tom Mboya who we refer to as Tom Okeyo Odhiambo. This person contributed a lot to this country. This person was the first person to bring clearly defined economic papers for this country some of which we are still referring to. Nobody can visit his gravesite and yet it is a tourist site. This Budget and Appropriations Committee has made sure that we are allocating Kshs10 million to that site. What could be so good like that?
Hon. Speaker, another thing is that we have been crying for a patrol boat for Lake Victoria. This Committee has made sure that there is allocation of Kshs90 million for this particular patrol boat.
Hon. Speaker, I want to add that there are road in other areas like there is a road in Central Province that this Committee has allocated money to. We have allocated money in respect of our departed colleague Mr. Nyumu who just passed on the other day because he had started a project of rehabilitating the youths who are victims of alcohol.
Hon. Speaker, listen to this: What is our strategy? Our strategy is for the next three years to divide our 47 counties into three so that each year each county must give us 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.
a flagship project so that we allocate funds direct to those projects as a Parliament. If for example Siaya feels that there is one road that cuts across the county we will not continue blaming the Executive and yet now Parliament has a budget making power. So, if it is Siaya and there is a road that cuts across all the constituencies and we cost it we will allocate money for it say Kshs1billion or Kshs2 billion for that specific road.
Hon. Speaker, if you allow this Committee to go that direction and engage with the Treasury on your behalf I am sure by the end of our term we will say that this Parliament has made some progress.
Hon. Speaker, very quickly after talking about those issues I wanted to just raise one more point before I sit down. I want to say that we have allocated money to ministries. Yes, we are very proud. We have given money for security. We have given money for infrastructure for example to the roads. We are giving Kshs42 billion for donor funded roads. We are giving Kshs41 billion for ongoing projects. Kshs22 billion for maintenance of roads and Kshs10 billion for new roads. We want the ministries now to start running. We do not want where we allocate huge amounts in the Budget and they just remain budgetary provisions. If we have given money for Narok-Maasai Mara Road, I would like to see construction on that road going on and not just putting figures and then another day you will hear money is not available and yet the money was allocated some previous years ago.
So, hon. Speaker, my plea is that we respect and implement the Budget. My final comment if I still have any few minutes left is that there is an allocation through these public hearings money that we have put in the Budget for this Parliament to use in executing debate on peaceful co-existence in this country. I would urge that that money is utilized effectively and efficiently so that we can remain cohesive in this country.
Thank you, hon. Speaker.
Thank you, hon. Speaker. I rise to support this particular Bill which is important for us. It is also important to note that this Bill has really considered some of the very important sectors of our country like the question of security. At the moment we are dealing with issues of security which are very serious and this Appropriation Bill has given good resources to the Police, Kenya Defence Force (KDF) and even to the National Intelligence Service (NIS).
Hon. Speaker, as we appropriate this it is also important that the Government really improves the level of co-ordination among these different arms so that by the end of the day we also get the value of the money that we appropriate in this particular Budget allocation. So, in this way we should not have incidences where we are informed that the information was known and not acted upon. Maybe it is time that those people who have the information are also given the mandate to act as it is required. This is so that by the end of the day we can avoid the incidences of merciless killings whereby people have lost sense of humanity and people are killing each other like nobody’s business.
Hon. Speaker, it is also important in this particular Budget that certain sectors of the economy that have not been considered can be expanded as we consider this. There are certain areas that are very important but when it comes to allocation it is not commensurate to the value of the sectors. For example when you look at sports and art 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.
for which we are known for you will find that what is allocated to them in terms of developing this sector you will realise that it is not good enough. These are some of the things we may need to consider in a very serious way in this House.
We also have other elements in terms of development. As a country we have increased funding to the Ministry of Foreign Affairs but at times they do not represent our interests well. I happen to come from Igembe North Constituency, which is the cradle of miraa . I realise that even some of the countries that we visited have had committees of miraa . You hear that even our representatives there, like our representative in the Netherlands, made no appeal at all against that Government’s decision to ban miraa . The ban of miraa in London has frustrated the people that I represent in this House. Even the Ministry of Foreign Affairs does not represent all the sectors of our economy. Therefore, it is important that when people are given assignments they take care of the interests of the country. Representation is about representing the country’s interests. Hon. Speaker, in this year’s Budget, we have allocated funds to the Ministry of Industrialisation for its activities. There is talk about youth employment and expanding the economy, but we cannot do business the same way all the time and expect different results. It is high time we reviewed the way we do things. Even talking about trading, we are trading things that have been made in other countries. Most offices use furniture from other countries. What does that mean? It means that we are exporting our jobs rather than provide for strategic funding of certain sectors of our economy. If it is industrialisation, we should specifically put money in areas that will improve not only the climate but give more serious incentives in that particular area. As a nation, we have been very much involved. Even in the Supplementary Budget there is allocation for the Southern Sudan Liaison Office but how much does Kenya benefit from that peace in that particular country? Hon. Speaker, in this Budget, we could have an allocation of even Kshs2 billion for construction of warehouses to support business people. We can hold our goods near the border with Southern Sudan. So, when we export goods to South Sudan, instead of doing so through Uganda, the goods can be taken near the border of Kenya with South Sudan. That way, we can take advantage of the investments that we have made. As a country, we have invested heavily in the peace building in countries like Sudan, just as we are doing in Somalia. This has cost us heavily but by the end of the day, how do we locate ourselves strategically? This has to be identified in the Budget. We may delay certain infrastructure investment but by the end of the day, we invest in other areas that may improve trade, as I said, around our border with our neighbouring countries. Hon. Speaker, Ethiopia is a large country with a big population. If we could have facilities near our border with Ethiopia to enable us fasten the cross-border trade, our economy would expand and be in a position to support more Kenyans, in terms of employment creation. This will provide our manufacturers with a ready market. Therefore, they will increase their production. Another area we may need to look at more seriously is research and development. The Asian tigers and other countries that are developing fast put good money in the area of research and development. As a country, we are involved in service delivery. We are 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.
also more involving in trading with goods from other countries. If we put more money into the industries around Kariobangi, and support the juba kali sector by giving its players money, we can boost our production. Instead of importing everything from China, India and Korea, why can we not support our own producers, like those found in Nairobi’s Kariobangi Industries? They should be given the money they need. Hon. Speaker, we know that in countries like China, the governments invest in the production sectors. When money is injected into such sectors, it expands the economy and enables the government to get money. In our case, even though we have some shift, when you look at our budgeting you will appreciate that it is very much traditional and within the box. It is high time we identified some sectors like research. That way, we will be able to put more resources where they are required, expand our economy and avail more resources for development. We can create more jobs and have more of the cash income programmes. As we look at the areas of production, we must also talk about agriculture. We need to move from talking and starting acting, so that more water dams can be constructed, so that we can undertake irrigated agriculture. We are now faced with famine, which means that we have to import commodities. Importing means that we are spending money which we could have saved. Any country that cannot feed its people cannot claim independence. With those sentiments, I support the Bill but next time, the Committee will have to engage stakeholders more and look at those sectors of the economy we have not considered before. Thank you.
Yes, hon. Gumbo!
Hon. Speaker, I thank you for giving me the opportunity to contribute to this Bill. I want to start by appreciating the work that has been done by the Budget and Appropriations Committee in giving Parliament the ability to have teeth with regard to resource allocation. I do not want to go back to what a lot of my colleagues have said but, in many occasions, we have spoken about the ills that are bedeviling our country. In this Budget, we are seeing in attempt to address the issues that affect our country. Hon. Speaker, as we have said before, it is good to aim at achieving sustainable economic growth. However, if that economic growth does not translate into addressing the contemporary issues that affect the country, we would, in a way, be planning in vain. So, as we go forward, it is very important that the programmes that we have put in place – which we want to address through this Budget – be programmes which will address the issues that affect our country. As we speak, some of the biggest issues confronting our country have to do with unemployment amongst our youth, national insecurity and food security. The omission that I would want to note, in keeping with the programmes of the Government in power, it is not clear from the Budget whether we are still on course. It is not clear from the Budget whether we are still on course with regard to the long-term development blueprint which is the Vision 2030. Indeed, of course, if you want to achieve development for a country and to make our country is a middle income economy--- But as you listen to the proposals being laid here, it is emerging that we are departing on a daily basis more and more from the goals 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.
of Vision 2030. In my view, I think that vision is good for the country and even as we aim to achieve the Medium-Term objectives, I think the long terms aims of that vision - if we follow it - will be very good for our country. Hon. Speaker, I have said it before and I want to say it again. I thank the Budget and Appropriations Committee for going that direction. The biggest problem we have had in our country is the level of degradation that you see in certain parts of this country. It is good that the Budget and Appropriations Committee has realized that, and ultimately for us to achieve equality in Kenyan we must put in deliberate steps to achieve equity. This is because, as we know, always equity remains the avenue to achieving equality. As long as we will do that, most of the problems and concerns that we have and most of the tensions that are appearing keep on emerging. Most of the fault lines that keep on emerging in the country are reflections of the disparities that we have had for so long. I think it is important that this movement to programme-based budgeting is now addressing most of those issues. If this House continues in that course, perhaps, the 11th Parliament would have come out as one of the Parliaments that has ensured that as leaders we achieve or primary objectives which indeed, provides for the happiness of the people we lead. With those remarks, I support.
Thank you, hon. Speaker. First, I want to thank the Chairperson of the Budget and Appropriations Committee who in just a few minutes ago was discussing a trip that we are supposed to go to Syria; on a very serious private matter. From the onset, I want to thank the National Treasury and the Budget and Appropriations Committee for a job well done. First, I would start with the Budget because my main concern was that this Budget is in tandem with the manifesto and the promises made to the Kenyan people by the Jubilee Government. I said, “Yes”. Huge investment in education; the laptop project, for the first time, the budget has been increased by 33 per cent on free secondary education; 28 per cent for free primary education; 5,000 more teachers are to be employed. There is Kshs600 million for National Schools rehabilitation; there is security which is our main concern. There is huge investment in insurance of men and women in uniform. There is an extra 10,000 officers to be recruited. There is the Housing project for the police and 1,200 motor vehicles, the Forensic Laboratory, and of course the Safaricom Security, if the Parliamentary Committee that deals with this mater approves--- On infrastructure, if we want to grow our economy by double digit, then there should be huge investment in infrastructure. We have seen the Standard Gauge Railway (SGR), and on that I would say that baby was conceived in 2008 but it could not be delivered. It was only delivered when one Uhuru Muigai Kenyatta is the President and that becomes his signature project. The next signature project of President of Uhuru Kenyatta since Independence will be the road between Nunon-Modogashe-Wajir. I know the one of Nunon-Modogashe is about to start. Starting with his late father, Mzee Jomo Kenyatta, President Moi and President Kibaki; it is only President Kibaki who did a 20 kilometre tarmac road in North Eastern, in my constituency. He did that after I left my old party and he adopted me. That time he did 20 kilometres; when I left my party and he adopted me. He gave me a 20 kilometre tarmacked road. 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.
Which party is that?
The biggest party in terms of numbers in this House, if today we were in a Parliamentary system, it should have produced a Prime Minister. But they refused; I wanted a parliamentary system, but my former boss and my mentor, the Former Right hon. Prime Minister, went for a Presidential system. Little did he know that he did not have a tyranny of numbers? Hon. Speaker, if I go back to the Constituency Development Fund (CDF), we have given an extra Kshs10 billion. I urge hon. Members to prudently use that money. Let us use that money on education because water and health has been devolved. Let us focus on education in terms of bursary and on improving the infrastructure. Water had been given to somebody else; this is the work of the county governments now. Let us do roads, educational improvement and youth empowerment. Hon. Speaker, I am happy today that the county women representatives – one time they walked out of the Chamber. But at least, today you should cheer me and cheer the Budget and Appropriations Committee. You have Kshs2 billion in this Budget and you must thank hon. Mutava Musyimi. One time you were saying - “Mutava must go.” But now I think, you are saying: - “Mutava must stay.” Hon. Speaker, there is huge investment in agricultural irrigation. The one million acres is a Jubilee signature project. There is also Social Security nets. I want hon. Members to listen to me. In every constituency, over 500 elders of above the age of 65 will get Kshs2,000. Please, let us do it on equity and let us make sure that our elders get their kshs2,000. Let the money that will go to orphans and people living with disability go to them. There is same allocation for maternity. I am sure that more than ever there are many children called Uhuru and Ruto in the villages. Today ladies walk into maternity hospitals, deliver and walk out. I am sure President Kibaki, former Prime Minister; former Vice-President should visit these clinics and see ladies walking out with their babies free of charge, under the able leadership of President Uhuru Kenyatta and that was our promise. Therefore, with this Budget there should be no dialogue. This is the people’s budget! If you want to dialogue on education, we have given the money. It is Prof. Kaimenyi to deliver. If it is about security, then it is the men and women in uniform who are in charge. We have done our bit. So, with the passage of the Appropriation Bill, dialogue is taken care of. Article 221(3) of the Constitution gives power to Parliament to be in charge of the Budget making process. It is under that Article that they also consider the budget of the Judicial Service Commission (JSC) and the Parliamentary Service Commission (PSC) again based on the constitutionality of Articles 127 and 173.
Hon. Speaker, I hope Hon. Musyimi and his Committee have addressed Article 221(6); in the event that this Appropriation Bill is not assented to, what next? To finish, I have given all the praises I could have given to the Jubilee Government, which I and my colleagues represent here. I have done all the praising I could have done to the Budget and Appropriations Committee, but I want to do a small critique of the Committee and the National Treasury. 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.
This Appropriation Bill 2014/2015 has a financing gap of Kshs17 billion. I have no problem; in fact, I am very happy with the way money has been allocated because Kshs5 billion was allocated to the Constituencies Development Fund (CDF). That is good news. An amount of Kshs5 billion was allocated for public participation. Why do you go to Garissa and ask the great people of that county what they want and then you come back to Parliament and you do not give them something? Kshs5 billion for public participation is good and so is the PSC allocation of over Kshs6 billion. Because we have serious development projects going on in Parliament, including a 26-storey building--- If you look at public finance, I know it is a subsidiary legislation. Hon. Ngong’o is looking at me but the Constitution is superior.
If you look at the Public Finance Management (PFM) Act, 2012, section 39(4)(c) says that any increase in expenditure in a proposed appropriation is balanced by a reduction in the expenditure in another appropriation, or any appropriation reduction in expenditure is used to reduce it. My solution to this is that the Cabinet Secretary for the National Treasury should not panic. Once we approve this--- Once it goes through the Third Reading, the Budget and Appropriations Committee has friends--- After two months he should come with Supplementary Estimates. I am sure that the two months he is given, he is not going to spend--- That is July and August. That is the only way I can remove fear from the Executive; they must leave tonight. We have a serious dialogue amongst Jubilee from the President to the county representatives; we do not look for dialogue. It is always among us. Dialogue is part of our leadership.
Hon. Speaker, Hon. Okoth should know that I am contributing to a very serious matter. It is not a matter that deals with--- In my community, we do not talk about Saba Saba and my faith---
You can ignore noises from the Floor!
Hon. Speaker, I am going to ignore it. I am going to dialogue, and I am sure the able Chairman and the Committee Members--- Please after we do this, they should come back to the House because it is not prudent or fair to have an Appropriation Bill that has a serious financing gap. From my little accounts--- I have not studied accounts like Hon. Ng’ongo, but I run some little kiosks. There is no way you can increase the expenditure and your revenue is constant. Even when you run a kiosk like the one I run in my constituency---
So, I think the root cause of this Kshs17 billion0--- I have discussed with the Chairman, Hon. Ngong’o and Hon. Aden. We will pass it, the President will assent to it and then after two months the Cabinet Secretary will brings Supplementary Estimates. My parting word is that the solution to the so called national dialogue is the Budget of 2014/2015. Let the Cabinet Secretaries implement it; let the Executive implement it; let the President have time to monitor his Cabinet Secretaries and Parliament plays its oversight role.
Let us reduce the rallies; let us have them on weekends as we used to have them, so that Kenyans can see progress. This is because when you go there and talk about rallies, Kenyans will not see the good thing in education and the railway. You might even 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.
in the process of running away from tear gas uproot the railway which is being built. We want peace! We want peace and we want this thing to be done when we have a peaceful financial year.
With those few remarks, I beg to support.
Hon. Members, I told you not to do that. I can see several of you want to contribute. There are still 33 more requests. So, do not smile at me; it is good that you keep smiling but I am going to follow this screen.
Hon. Speaker, thank you. I also want to support this Bill; before I give my comments on the Appropriation Bill, I want to assure the Leader of the Majority Party that he has no cause for alarm basically because when this Budget was being prepared, a number of assumptions were made. If these assumptions do not hold, then a number of things will have to happen in this Budget and one of them is that we will be collecting over a trillion shillings as a country in revenue generation. If that does not happen, then automatically we will have a bigger gap than that we are talking about.
The gap we are talking about is hypothetical; there is no gap. I am talking about this as an expert in this area.
This Budget has a number of good things, and we all must appreciate that a lot of effort has gone into preparing it. For example, through public hearings, the Budget and Appropriations Committee was able to identify some key projects all over the country; as a result of that, the projects have been allocated resources, so that they are completed. This is very important because in this country we talk a lot about white elephants. By completing these projects, we will be doing away with white elephants.
If you look at Vision 2030, there are five big dams in this country which have been identified as five flagship projects. Two of the five dams are complete and three are ongoing. What has happened this year is that from this Budget, those three have been given money to complete them. One of them is in Kitui County, Umaa Dam has been in a state of incompleteness for the last three years. When we see these kinds of initiatives, we say that it is a good thing coming from Parliament.
At the same time, another very attractive element of this Budget is the insurance for policemen and policewomen. We know that very many police officers have lost their lives in the line of duty. The fact that they did not have insurance meant their families suffered after they died. With this kind of insurance cover, we are sure that our policemen are going to do their work with the assurance that if anything happens to them, their families will be safe.
There is also money that has been set aside for the disadvantaged groups in this country. I want to thank the Treasury and Parliament for ensuring that this money has been increased, because our elderly, disabled and orphans have suffered. These resources will go a long to assist the disadvantaged groups. Another interesting thing in this Budget is the fact that even though we are going to borrow money from our friends, the development partners, it has made it very clear that any money that is going to be borrowed, either externally or internally, is going to be used in the productive sector. 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.
This is very important because when loans are used in the productive sector, then those loans are able to help the economy grow, and repayment becomes easier. We actually do not overburden our future generations. But even after saying there are good things in this Budget. I think there are things we need to note, and which, as we move forward must be improved. One of the lessons we have learnt this year, is that there are still some bureaucrats in Treasury, who are living in the old constitutional order. They need to be aware that we have a new Constitution, which actually makes this House a budget-making House. It is for the National Treasury to note that when the Estimates are passed by the House, it is not the work of Parliament to readjust the Budget to the approved Estimates. It is the work of the National Treasury. Even as we talk of the gap, I think Treasury should have taken the first step to make sure that this gap is non-existent. They should have gone to the itemized Budget and reduced some of the budgets, so that we have a balanced Budget. This has not happened basically because the National Treasury thinks that this Parliament will continue rubber-stamping their Budget. This is not going to happen. I think time has come, for Treasury to realize that this House has a mandate to make the Budget and they can make adjustments; when adjustments are made by this House, they only need to act as per the drafted report. The other thing which needs to be noted is that, this Budget has actually a huge component of what we call the AIA, that is Appropriations-in-Aid. The expectation is that, this money will be collected by Ministries and then the money will go to the Consolidated Fund and the money will be used to implement the Budget. In the past, there have been experiences which have not been very good for this country. Where this money is put in the Budget the issue is collecting it and making sure it is spent. I think this year we want to urge Ministries to make sure that the money is collected, and used to fund this Budget. The other thing which I think needs to be given attention as we move forward. Is the issue of food security. When you look at this Budget, we have set aside money for irrigation, which will actually enable this country to irrigate only 10,000 acres of land against a target of a million acres. If you compare, 10,000 in a year against a target of a million acres in five years, obviously we will require about a hundred years to implement this. It, therefore, means that if you are serious about food security in this country, we need to allocate more resources to this area. The other area, which I want to talk about, is the cost of living. This Budget must be financed. As we finance this Budget, I would plead that we manage a delicate balance between financing the Budget and ensuring that the cost of living is not increased for poor citizens. One of the best ways to do that is to make sure that when the Finance Bill, which will indicate how we will raise in revenue, comes we make sure that this year deliberate efforts are made by the National Treasury to bring many more Kenyans into the tax net. We should tax more people instead of increasing the tax rate for those who are paying the tax. By doing that, we will make sure that we do not really increase the cost of living for most of us. We should make sure that issues to do with inflation, which contribute to high inflation rate, should be managed, so that we have a low cost of living. If we do not do that, I can assure you that Kenyans will not stop complaining about the high cost of living, which is a national issue of concern. The last thing I want to say is when you look at this Budget of Ksh1.8 trillion the only money that goes to the county governments is about Ksh226 billion. This means 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.
that about Ksh1.6 trillion remains with the National Government. The fact is that 1.6 trillion remains with the National Government. We need to make sure that we guarantee, regional balancing in sharing these resources. Some parts of this country should not feel like they have been left out, or that they are being discriminated against. If we do that, we will be helping this country. The last thing is that we are all aware that the Division of Revenue Bill has hit a snack; as we are talking now, there is a Mediation Committee, which will be looking at it. The implication of that is that, the county governments are not going to get their allocations. That is likely to delay their own budgets. What I want to say is that, the opinion which was given by the Courts---
Thank you hon. Speaker. I serve in the Budget and Appropriations Committee, and so feel very happy that we have come to this point in terms of the Budget process. A lot of hours have gone into considering it. As I support the Appropriation Bill, let me note, as other Members have done, that the small deficit in financing of 17 billion is not to worry anybody. This is the biggest Budget in our history. So, Kshs17 billion that could not be factored in at the last moment should not be a worry at this point in time. Last year, the Committee had a very good measure of cutting the budgets on travel, advertising and hospitality by 30 per cent as an austerity measure. If we had done that this year, the Kshs17 billion would have been recovered. We think that this austerity measure is important; every time we look at our budgets--- We have very big delegations going to other countries. You go to negotiate with another country which has five representatives; the Kenyan Government will normally have about 30 people. When we reduce that budget by 30 per cent we take a measure that helps save money. So, there nothing to worry about in terms of the 17 billion. As we proceed with the Budget, I also want to note and it is important for us, as the peoples’ representatives, to appreciate the roles that we have. The relationship between citizens and their Government is nothing but money. The relationship we have with the Kenya Government is nothing but the taxes that we pay to it. As we sit here to pass the Appropriation Bill and the Budget, we are actually serving our country and confirming that, indeed, Government money is our money. We are putting together priorities for our people, which is what the Constitution allows us to do. If you look at public participation this year, it is really to be celebrated that we have funds to use in public hearings. A lot of times we go out to Budget hearings, many citizens come and they have different priorities that need to be funded. This particular year, there is an allocation that will go into public hearings; this is actually to be celebrated. On the Ministries and Departments, I think it is also good that they have given us a very lean list of core areas that they want funded. That should be appreciated and, indeed, encouraged, so that we do not have a long shopping list. Every Ministry should not come to us with a shopping list. What we should have are key priorities, a few things that each Ministry can do in one year; those are the things that will get funding. On Treasury and Sector hearings, I think that also is to be appreciated; we continue to really appreciate the work that our Cabinet Secretary, Henry Rotich is doing at the National Treasury. I think he is one of our finest Cabinet Secretaries and we are very proud of the work he is doing, including what he has done with Euro bonds. That is 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.
one Cabinet Secretary that is serving the Kenyan Government; you cannot fault him for what he is doing; we appreciate the work that he continues to do in his Departments. On the Budget Policy Statement, the Committee has lessons on this; next year, we will determine the ceilings at the stage of the Budget Policy Statement, so that by the time we come to the Appropriation Bill, we will not have the small financing gap that we are now struggling with. On Division of Revenue Bill, I think there is a process going on; I just note that in the future--- We have heard very long conversations on level five hospitals, I think there should be different solutions, including making them regional referral hospitals that could revert to the national Government, where counties are not able to fund them. If they are found fit to remain with the counties, then funds that should go to level five hospitals, will have to be given to the county governments. In this particular year, even as the matter goes to mediation, what we are saying is that of the Ksh226billion, we start by removing Ksh3.74 billion that should go to level five hospitals, and then the rest of the money is left for the equitable sharing. That would solve the problem that we now have. From Sh226 you remove sSh3.74 for level five hospitals in the eleven counties and then the rest of the money should go to the equitable share; we note that those counties have benefited from the youth polytechnics money and the money that was set aside for rural electrification. Also, looking at some of the Budget lines that we have, especially the D135, which contains the Devolution Ministry Funds, and the Constituency Development Fund, I think what we are saying in Africa is that a Member of Parliament is also an agent of development. In Kenya, a Member of Parliament is an agent of development. As an agent of Development, then you have to point out some priority areas that need to be developed. We have said many times, even to legal colleagues, that Members of Parliament are not implementers; they are vision carriers; they are champions of development in their areas.
They do not do the work that should be done; there are committees that are set up to oversee implementation. All that a Member of Parliament does, which is the reason why we get elected in Kenya, is to be a development agent who takes development back to our people. I think the law must support that premise. The money that we have in the Constituency Development Fund (CDF) is really appreciated because it will do a lot of work in our constituencies.
Hon. Temporary Deputy Speaker, the County Women Representatives (CWRs) have had a fairly long and interesting story in terms of getting our funding. Today, we sit here happy and appreciative that we have Kshs7 million going to every constituency for overseeing by the CWRs. We are truly grateful and we want to play our rightful role in complementing what the CDF is doing. So, we this Budget. I think I am almost saying “Mutava for President” and we are no longer saying “Mutava must go”.
We are now very happy with what the Budget and Appropriation Committee has been able to do. 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.
On health matters, again we appreciate very much the funding that is going to maternal health. For the first time in the history of our country, we have 68 per cent of the women of this country delivering in hospitals, accessing immunization for children and curbing maternal and child mortality. We appreciate that and continue to emphasize that it should go up to 100 per cent; all the women of our country should deliver in hospitals.
Hon. Temporary Deputy Speaker, it is very sad that a woman could lose her life as she tries to give life. If we have more money going into maternal health, we are not going to have any of our women losing her life as they get new presidents, governors and Members of Parliament for our country.
I also appreciate the funding that is going into leasing of equipment. I think the Committee will continue to debate the leasing policy. We have leasing of police vehicles, and I think we have seen some results from this. This year, we have leasing of equipment for hospitals. As the Budget and Appropriation Committee, we are going to look critically at the policy of leasing because it generated a lot of debate in the Committee. However, I think we should appreciate that hospitals will have equipment.
On police and intelligence, Kshs17 billion has been set aside. We do not want to hear the excuse of lack of funding from security agencies. If they have other problems within the security departments, the Committee needs to be engaged on that, but it will no longer be a question of money. We ask that the funds that they have been allocated be used appropriately and well to secure our country.
On the Judiciary and the legal agencies, those of us who are lawyers are also very happy. We have the Gender Commission funded this year to the tune of Kshs290 million under R214, and we appreciate that funding very much. This is because the question of gender and balancing continues to be a challenge. We have seen in this House a very sad debate on FGM. We are saying that women of this country are entitled to their rights and protection, and commissions like the one on gender are very important.
Hon. Temporary Deputy Speaker, we celebrate the cash transfers. Again, a lot of money will go to the elderly; a lot of money will be used on those who are really poor.
It is, indeed, true that a country is not judged by its richest; it is judged by its poorest. As long as we have poor people in this country, that remains our judgement and not really how many of us are driving Mercedes Benz; it is really about how many of us are sleeping hungry. As long as we have funds like those for cash transfers, we will appreciate this Budget, and the economy will move forward; it will not leave the poor people behind.
Hon. Temporary Deputy Speaker, as I wind up, we have areas that we want to be looked into. We are looking at tangible projects. Uhuru Highway still remains to be addressed in terms of decongesting it. Therefore, tangible projects will remain a goal of the Budget and Appropriation Committee and Members of Parliament.
Monitoring and Evaluation (M&E) is something that has been raised a lot. We just have to monitor and evaluate these funds, so that they change lives.
Lastly, is the issue of peace in our country. We just have to engage on peace, invest in peace and cohesion. We will not have a country where there is no peace. So, let us invest in peace and national cohesion; le us invest in peace building initiatives and civic education. These remain the duty of every Member of Parliament. We just have to tell our people to live peacefully. I support this Bill. 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.
Thank you, hon. Temporary Deputy Speaker.
Thank you, hon. Temporary Deputy Speaker for giving me this chance to contribute to this very important Bill. I want to say that this Bill is the legal document that will actualize the Budget for 2014/2015. I also want to say that it is an ambitious Budget. The irony of it is, while it is very good work that has been put in and it seems to address most of the problems that affect this country, the big question is, where the other Kshs350 billion will come from, because there is a financing gap? We floated the Euro Bond but there is a gap which we do not know how it will be financed. Hon. Mutava Musyimi, who is my very good friend, will look into that.
This Budget should have addressed the problem of cost of living for the poor. The cost of living is too high; people are suffering and life is very difficult. We should have stopped taxing fuel; when you tax petroleum products and the Government takes a lot of money from a litre, the cost of living goes up. This is because we manufacture using fuel and people travel. We should exempt petroleum products from tax.
Hon. Temporary Deputy Speaker, this country has exceeded the borrowing capacity. This is because we have borrowed Kshs2.2 trillion. That represents 52.1 per cent of our GDP. The World Bank has advised Kenya not to keep on increasing public debt. This is because it will reach a time when it will be very difficult to pay even the interest.
While we are happy that when we floated the Euro Bond many people showed interest, which is good for this country, we should also worry about the growing public debt because that is what can put our economy in disarray.
The Budget and Appropriation Committee forgot to include the Kitui-Kibwezi Road it the Budget. I am happy that they have included in it a road to Masai Mara National Reserve, which brings in a lot of revenue. However, the Kibwezi-Kitui-Mwingi- Mau up to Ethiopia Road is very important because that is where the minerals are. For your information, Kitui County has more coal, iron ore and limestone than all the oil that Tullow Oil Company has found in Turkana. This is the case yet the road network there is poor. The Budget and Appropriations Committee should look into this. They should even allocate this road Kshs1 billion to start with. They should not borrow more because the responsibility of this House is to create a good budget. They should look into this road but they should not borrow more.
Hon. Temporary Deputy Speaker, it is very good to be food-secure in this country. It is good that a little has been allocated to agriculture. However, the Maputo Declaration requires that every country invests 10 per cent of its budget in agriculture. We have now invested less than 1 per cent. Let the Budget and Appropriations Committee, which is very efficient; look into that and put more money into agriculture. It is only by doing that, that the economy will grow by double digits. Agriculture employs more than 50 per cent of our workforce. It also produces more than 50 per cent of the money that we get. Agriculture is the key to economic growth. If we do value addition, we will move very fast. I am sure there are people here who are well read in finance and economics and they know these things. Hon. Temporary Deputy Speaker, for this country to move forward and create wealth for everybody, we have to shift our thinking. We have to do an about-turn of 180 degrees in our budget. What have those countries that are doing well done? The Italians 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.
make the best cars; examples are Lamborghini, Monte Cario, Veyron, Ferraris and so on. They specialize in the manufacture of these very beautiful cars. They also prize them very well. So, the Italians are sure that they will get money. Look at other countries. You need to do a SWOT analysis to find out what is important for Kenya and what we can do better than others, so as to move to the next level in industrialization. The West lost economic dominance to the East, which has countries like China, India, Malaysia and others, because they said that they did not want to do manufacturing. They said that they only wanted to engage in the service industry, banking. Manufacturing flourished where there was cheap labour. Today, it is countries like China that are investing in manufacturing in the East and the West is now trying to get manufacturing back. Let us be strategic in our economic planning. If we say that we are going to invest in agriculture we should not just invest in irrigation and then we rely on the water of Athi River to do so. The water of Athi River gets so low during the dry season, yet you want to irrigate the lower part of the country, which is about one million acres. Where will the water come from? After all, this water is polluted from Nairobi and the coffee farms around. This should have been done in Tana River; also we should have thought of gravity irrigation, so that the cost of moving water is low. When we do things the same way they were done 30 years ago, we are unlikely to get better results. However, because we have an able Chairman of the Budget and Appropriations Committee, we will move forward. I am sure he is listening to what we are saying. The big infrastructure programmes that have been budgeted for are a good thing. I am talking of the Standard Gauge Railway (SGR) and roads. We want the Uhuru administration to follow the footsteps of former Presidents Kibaki and Moi, so that it does more on roads and education. Moi was one of the best Presidents of this country because during his time cost of living was very low. There was a promise that a fertilizer plant would be established in Webuye at the Pan Paper Mills premises. However, recently, I saw the Cabinet Secretary for Agriculture saying that it would be put up in Eldoret. I am sure somebody else will come and say that it will be put up in Kitui, where I come from. It should be clear where that factory will be situated; we need it as soon as yesterday. We need our own factory, so that we produce cheap fertilizer. This Budget and Appropriations Committee ought to have factored in the money for retired teachers, retirement benefits of the former Prime Minister, former Vice- President and former MPs who are languishing in poverty – we see them along corridors here. Next time you sit to plan a budget make sure you include in it benefits for the former MPs, who are really suffering, and those teachers who went to court and got orders for payment of their money. Hon. Temporary Deputy Speaker, as Kamba community, we want to say this: General Mulinge served this country exemplarily and we want him to get a State funeral. That is when you will respect us as a community. He is a leader who served this country very well. We do not want people to dilly dally – we want him to get a State funeral and it is only me who can tell you that. There has been a lot of insecurity in the country. I send my sincere condolences to the people of Mpeketoni, Wajir, Mandera, Baringo, Mombasa and to other places where 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.
Kenyans have lost their dear ones. The issue of insecurity is so serious. I am happy that this Committee has allocated Kshs80 billion to the national security sector. We want delivery of services. We want Kenyans to live freely. We do not want anybody to stoke ethnic tensions through incitement. The law should take its course on anybody trying to incite Kenyans, be they from Jubilee or CORD. We will not support that because it is very wrong. We do not want Kenyans to butcher each other. Even if you sack the Cabinet Secretary and bring an angel he will still perform the in same way, unless all the other structures are put in place. Let us not have a blame game. Let the security agencies and those to whom the responsibility of investigations has been bestowed do a good job and bring culprits to book. When we had an attack at the Westgate Mall all of us united as a country. Today, we are divided. We should have visited Mpeketoni, Wajir, and Baringo as a team. Hon. Temporary Deputy Speaker, the Kshs33 billion that has been allocated to the CDF will go a long way in developing this country. I want to urge this Budget and Appropriations Committee, led by the man who nearly became President before he became shy, to increase the CDF allocation from Kshs33 billion to Kshs100 billion, because this is the only money that reaches the people directly – there are no trips to Israel and other places as the county governments are doing. This money is used to alleviate poverty. We have to invest in the energy sector to make energy cheap. For us to attract foreign investments we have to ensure that energy is cheap. Electricity is very expensive and it has to be made cheap for the economy of this country to take off. I do not know what gets wrong in Kenya. When we want to take off something comes and we are then are in disarray. I can see my friend hon. Angwenyi. He is applying to join CORD, but that is for another day.
There has been a lot of poaching, yet the money that has been allocated to combat poaching is not sufficient. We need more money to protect our wildlife – it s our heritage. We will lose tourism, which brings us a lot of money, if we do not allocate more money to protect what we already have. This country is situated in a very good geographical position. Kenya is the gateway to Africa economically and for so many other things. We are situated across the equator, where the climate is so good. We have very good People who are very well educated. For us to take off and be a middle income country, we need to do things the right way. The right way would mean that this Jubilee Government should deliver and not give promises like the laptops and other things, without delivering. I support.
(Hon. (Ms.) Mbalu): Thank you, hon. Leader of the Minority Party. What is out of Order, hon. Charles Njagagua.
On a point of order, hon. Temporary Deputy Speaker. I want to direct this to The Leader of the Minority Party---
(Hon. (Ms.) Mbalu): He has already sat down. Hon. Member, you should know your own Standing Orders.
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( Hon. Mwinyi uttered some remarks off record )
Hon. Member, please, observe the discipline in the House; we have the requests and we have to follow the as per the Members and nothing is out of order. Hon. Member, please respect the Chair.
Hon. Member for Bomet.
Thank you, hon. Temporary Deputy Speaker. I have heard some are complaining that they were here at 2.30 p.m. So was I and my card has been on from that time up to now.
There was one thing which the Leader of the Minority Party mentioned; it was that retired President Moi did some roads and some people were shouting that he did not do any roads. The road which is in Bomet, Sotik-Bomet-Narok Road, was done by retired President Moi. Just because retired President Kibaki did the Thika Super Highway, do not pretend roads were done all over this country. He only did in specific areas of this country; retired President Moi was able to do roads in many areas of this country.
Thank you, hon. Temporary Deputy Speaker, I wanted to make that clarification. I was highly irritated by that shouting that retired President Moi did not do any roads in this country. You can count buildings in this city; Times Towers, the tallest was done by retired President. You go to the best Stadium we have in this country, Moi International Stadium, Kasarani. It should be clarified.
On the issue of roads, I am very happy with this Budget; I am supporting it because we are allocating about Kshs.100 billion to roads. This is because they are a key thing in this country and without them we may not develop and we need lots of resources to be allocated to them. I am hopeful that roads which are going to be constructed will cover the whole country; they will not be in specific regions. I am hopeful that we are going to get tarmacked roads in Bomet Central and Bomet County because we do need them. We did pass a Motion as a House that we require in each of our constituencies at least 20 kilometers of roads to be tarmacked. I hope the Executive will fulfill that thinking of this House, that at least 20 kilometers of roads in every constituency should be tarmacked.
On Agriculture, I am happy that about Kshs.21 billion, has been allocated. This is because we need the Ministry of Agriculture to take care of our food. Without food, we will not do well as a country. There are subsectors in agriculture like tea, which need to be assisted. Currently this is one of the crops which are highly taxed, especially the ad valorem tax, which is not taxed on other cash crops. I would wish that in this Appropriation Bill, we take care of the tea subsector by ensuring that we allocate some funds to take care of it. Currently the government is levying tea farmers ad valorem tax and transferring it to the National Treasury; farmers should be allowed to enjoy all this money. Now that prices in the world market for tea are dropping at an alarming rate, and tea farmers are really suffering--- They even missed the mini bonus. I know the President had directed that they should be paid, but up to date these farmers have not been given the mini bonus. I do hope that something will be done in that area. We might also need 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.
compensation in agriculture. I know various sectors have been compensated for suffering calamities; but maize farmers in Bomet county have never been compensated. There is a disease which has actually made maize farming nearly impossible, and we are getting misleading information from the agriculture officials. They direct us to buy hybrid seeds from Kenya Seed Company, as these are the right seeds to be planted as they cannot be affected by this maize disease. But still, the disease has really attacked all our maize plantations, and our farmers are not harvesting any maize. A compensation kitty for farmers needs to be created. Having come from the teaching career, I will never say anything in this Appropriation Bill, without mentioning something to do with Teachers Service Commission (TSC). We are allocating Kshs.165 billion to the TSC, and this money will employ 5,000 teachers. Surely, this is a drop in the sea, when we have a teacher shortage of over 80,000. We have a great opportunity to take care of this teacher shortage; we are not putting adequate resources to recruitment of teachers. I do wish that we could appropriate more money to TSC to recruit at least 20,000 teachers this year. Hopefully, I will bring an amendment to this during the Committee Stage to ensure that we have more teachers, and also to take care of the discrimination in the TSC. Teachers are a highly discriminated against lot, while other public servants are able to enjoy responsibility allowance and leave allowance. Teachers do not enjoy this and the Constitution is very clear that there should be no form of discrimination. So, I request my colleagues to support this idea of giving more funds to the TSC. On the issue of the Ministry of Energy and Petroleum, I can see on the Development Vote, we are giving them about Kshs24 billion. Electrification is a key issue in all parts of this country. All of us need electricity in our houses. Most of our homesteads in the rural areas do not have electricity. I am happy with Jubilee the programme to provide electricity to all primary schools. This is a very good initiative and I do support it. But I believe we need to come up with cheaper sources of energy, possibly using coal, which is there in Kitui, Taita and West Pokot, so that we can bring the cost of electricity down. Currently, it is very expensive; even if we are able to take electricity to our villages, most of our people will not be able to connect it. This is because paying a bill of Ksh.1,000 every month is not quite affordable by our people. So, we must think of ways of making electricity much cheaper. On the issue of allocation to the Ministry of Devolution and Planning, about Kshs50 billion and part of this Ksh.33 billion to CDF--- This is one of the best devolved funds, which is really felt on the ground. I am happy with this but I do wish we could even increase the amount which is allocated to CDF. In my county there is one character who normally laughs at us regarding this CDF; he says the money is just peanuts; you can only use it to construct toilets, and nothing else. Surely, we have done lots of development through CDF. Currently at least in each primary school in my constituency we are putting up a classroom and also in most of our secondary schools. It might not be in all of them but, at least, we are improving the state of our classrooms. For our kids to learn well, they need a good environment and good classrooms, but there are places where they are learning in classrooms made of 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.
wood off-cuts, even though Bomet is a very cold place. The environment is not that conducive. Also about toilets, most of our schools have very bad toilets and we need to give more funds to our schools to improve their environment. Now that we are appropriating all this money, we do trust--- Now that we are appropriating all this money we trust the people who are going to be in charge of it--- We Members of Parliament are not going to be in charge of it. The Executive is going to be in charge of it. We should reduce corruption in various ministries. This money should go to the right people and projects, so that our people can benefit. However, the amount of corruption that is there currently may not allow that. I would wish that---
(Hon. (Ms.) Mbalu): Hon. Member, your time is over. You have made a very good contribution. Hon. Manson Nyamweya, the hon. Member for South Mugirango.
Thank you, hon. Temporary Deputy Speaker for giving me a chance to contribute to this very important Bill. As we go through this process let me hope that we are not engaged in a ritual. Let me hope that as we start this process the Budget implementation is going to be actualised.
Hon. Temporary Deputy Speaker, what has happened is that in the last Budget over Kshs60 per cent of---
(Hon. (Ms.) Mbalu): There is a point of order from hon. Moses, Member for Eldama Ravine.
On a point of order, hon. Temporary Deputy Speaker. I have noted we are more on this side than, of course, on the other side, which is very obvious. I have noted that you are picking one from this side and one from the other side.
(Hon. (Ms.) Mbalu): Order, hon. Moses Lessonet. It is at the discretion of the Speaker but you can still catch my eye. Do you want to make a suggestion?
Yes, hon. Temporary Deputy Speaker.
(Hon. (Ms.) Mbalu): Yes we can listen to your suggestion.
Yes, hon. Temporary Deputy Speaker. I totally agree with your discretion. We really want to contribute to this matter, epseically now that the Constituencies Development Fund (CDF) has been increased to Kshs33 billion. Allow us to contribute for just two minutes, so that we can all talk.
(Hon. (Ms.) Mbalu): Hon. Member, we have time to discuss this; given the weight of the matter--- This is the Appropriation Bill, 2014. I know that it is inadmissible because it infringes on the good debate. All of you have a chance to speak. Currently I have 17 requests and you will have your chance. You, being the Chairman of the CDF Committee, we appreciate your suggestion.
Hon. Nyamweya, carry on.
Hon. Temporary Deputy Speaker, I believe you will give me my lost time to contribute because he has taken more than three minutes of my time. I support this Bill; the point I want to raise is that this looks a very ambitious Budget, given the past performance and how funds have been used. 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.
Hon. Temporary Deputy Speaker, the major point here is that for this country to grow and move forward, there must be investment in security. Secondly, there must be investment in agriculture and lastly there must be investment in infrastructure. Those are three areas. If we put all our money there this country will be able to move forward. I see in the allocations a substantial amount of money has been given to the Ministry of Interior and Co-ordination of National Government. Equally a substantial amount of money has been given to the National Intelligence Service (NIS); it is Kshs17 billion. I do not understand the reason for this. This money should have been used to do development projects.
When I look at the Prisons Department they have been given very little money, yet they provide very crucial service to this country. I have also gone through it and looked at the Ministry of Foreign Affairs. It is also supposed to promote trade outside, so that we are able to grow our exports and earn foreign exchange. They have given it Kshs9 billion; obviously they will still come for Supplementary Estimates.
Hon. Temporary Deputy Speaker, these are the kind of issues that the National Treasury and the Budget and Appropriation Committee should address, so that we do not come back. I have also looked at the Ministry of East Africa Community. They have been given Kshs1 billion, which is very little money, yet 50 per cent of our exports today go to the East African region.
So, in terms of priorities it has not been done clearly and properly. I am happy that a lot of money has been allocated to infrastructure; this is good but the issue here is, are we going to have the same experience we had last year where money was returned and reallocated for Recurrent Expenditure? This is an trend which we must guard against. I think the only money which is properly used is that in the CDF. I am happy with the allocation. If you go to your homes today you will be shown projects done by the CDF. You will be shown a road or a dispensary which has been done by the CDF; you can hardly notice what the national Government has done on the ground.
Hon. Temporary Deputy Speaker, we do the Budget here but what amuses me is that when the President goes visiting areas Members of Parliament line up to ask him for development projects. I find it outrageous because the Government has allocated the funds. Allocation is done by this House and no other body, yet when the President goes to your areas you start bothering him with requests for projects. Surely how will he do those projects when money must be voted by this House? I urge the Members of this House to stop nagging the President when he tours the country; sometimes you scare him with so many requests, yet he has no money to give you, because all the money is voted here in Parliament.
Let us change our thinking as elected leaders. We need to help the people. We need to tell our people that the President does not give you development projects as they are approved in the National Assembly. They are not approved anywhere else. Hon. Temporary Deputy Speaker, that is another thing we need to note as Members of Parliament. We sit here and allocate money to roads. If the President comes to your constituency, or your county, where does he get money from to give you when Parliament has approved all the money here? So, we need to change as Members of Parliament from how we behave and interact with the Executive. Sometimes we make 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.
requests which are unreasonable and which should not be made by us, as people who do the Budget in this House.
Hon. Temporary Deputy Speaker, there is an issue here which Members are supporting, but I am not supporting it. I support the railway project but it is taking Kshs447 billion and our national Budget is Kshs1.8 trillion. It is like somebody who is going to borrow money to start a project which cannot pay back. People have said that it is going to be cheap. How is it going to be cheap to construct the railway line when you have not gotten any input from the users? The shipping industry players, importers and transporters have not been asked to give their input and confirm whether they actually support the system. It is us, Members of Parliament, who think that it is good for this country. In the entire Report, which I have read, there is nowhere we have got the input from the people who are expected to use the railway line. The Report does not say---
On a point of order, hon. Temporary Deputy Speaker.
Hon. Mbadi, I am contributing on the Budget allocations. All the time, you interrupt me. You are on my side.
(Hon. (Ms.) Mbalu: Hon. Mbadi, nothing is out of order!
Hon. Temporary Deputy Speaker, there are things we should look into in order for this country to move forward. We are allocating funds for various projects, including the Constituencies Development Fund, which is a landmark Fund. I managed to get my second term in Parliament because of the CDF. Therefore, I really value the CDF. As we move on, out of the funds that have been allocated for infrastructure, let us know how much money has gone to the Kenya Rural Roads Authority (KERRA). In the last financial year, my constituency got Kshs15 million only. So, let us know how much money has been allocated to KERRA in this Budget, which is earmarked for roads in the constituencies. Let us know how much money has been allocated to the Kenya Urban Roads Authority (KURA). From the start, let us know how much money has been allocated to all the sectors. Hon. Temporary Deputy Speaker, I urge the National Treasury and the Chairman of the Budget and Appropriations Committee to ensure that funds are released as soon as possible. We do not have to wait until November or December, as it has previously been the case. If that is what we are going to experience, it may be very difficult for the spending agencies to implement projects. Funds have been set aside for construction of highways, building technology and national roads. Here, we are giving them Kshs1.4 billion. Appropriations-In-Aid (A-In- A) is estimated to be Kshs24 billion. What happens if the anticipated A-I-A money does not come? I am a Member of the Public Accounts Committee. Hardly does A-In-A money come. So, for a project like this one to be funded from Recurrent Expenditure, until the money comes in, we cannot say: “As a country, we can promote safety on our highways.” If the money does not come, the programme is dead. So, probably, the technocrats and the Budget and Appropriations Committee know how they agreed on it. 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.
Hon. Temporary Deputy Speaker, another thing I want to comment on is the Euro Bond. As Kenyans, we must appreciate that, despite our noise and quarrels, international investors have confidence in this country. That is very important for us to note. Even the cost at which this bond was floated is excellent. Personally, I was not sure about the viability of the Euro Bond but I can now say that, as politicians, we need to change our attitudes and support this country development. At the end of our term, we shall be accountable to voters. They will want to know what we have done for this country during our tenure in Parliament. Therefore, I support the actualisation of the Budget, but let us not do it as an annual ritual. Thank you.
(Hon. (Ms.) Mbalu): Hon. Members, let me make reference to hon. Moses Lesonet on reduction of time. I would like you to refer to Standing Order No.97 (3), in terms of limitation of debate. It reads: “97(3) A Motion under paragraph (2) shall not be made in the course of the debate to which it refers unless it is moved after the adjournment of such debate and before the debate is resumed.”
So, for reduction of time, this one is inadmissible.
Hon. Members, let us proceed. Yes, hon. Sakwa, Member for Nambale!
Hon. Temporary Deputy Speaker, I rise to support the Motion in principle. In doing so, there are a couple of observations I would like to make. First and foremost, I must join my colleagues in thanking the Chairman of the Budget and Appropriations Committee for the great job done under immense pressure. I hope that next year, we will spread out the national resources a bit better within the parameters of the Constitution, and that it will be done in good time. Hon. Temporary Deputy Speaker, I have about four points that I would like to highlight. Increasing funding of the security sector is a great idea but I keep asking myself: “Is money truly the problem within the security agencies?” We need to think hard about this question. We can continue to pour money into the security docket in a linear fashion, but I am not sure if that is truly the problem. We have provided more vehicles to our policing agencies, but has that reduced the response time to emergencies by the police? I have not seen this in my constituency. Vehicles for the police were increased but their response time to emergencies has not changed. Has provision of more vehicles to the police increased the rate of prosecution and conviction of suspects? I am not sure because I have not seen the statistics. So, we must think deeply about insecurity. Therefore, even though, in principle, we should increase the allocation for security, as we have done, we should ask harder questions on the issues of co-ordination and implementation of the command structures within the security apparatus. We should 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.
ask hard questions on the integration of intelligence to overall security operations, so that the allocation that we give to the National Intelligence Service (NIS) can be put to good use and ensure that we get value for money. The value-for-money aspect can be seen in terms of enrichment of security response capacity to security situations. That is something we think about very deeply. Hon. Temporary Deputy Speaker, I am concerned about the nexus between the security agencies, as we know them traditionally, and now with the Ethics and Anti- Corruption Commission (EACC), the Director of Public Prosecution (DPP) and the Judiciary. Does linking security to justice provide for a smooth flow? I do not see any smooth flow. What are the outputs of the EACC? Can we measure their effectiveness? Are they really being effective? What about the DPP’s Office? Is it being effective? Is the Judiciary in alignment with these institutions? If that nexus is not working, no matter how much money we pour into those institutions, we will not realise any security. So, much as we have done our bit in the Budget, there are harder questions relating to the implementation side, which we must look at very carefully. Hon. Temporary Deputy Speaker, education is the cornerstone of our long-term development. There is no question about it. Today roads are good. Irrigation will be good tomorrow. Education is always good. I was a bit disappointed when I heard the Cabinet Secretary for Education, while addressing headteachers at the coast, saying that he was freezing expansion of primary schools and secondary schools. I thought that the era in which Government officials make decisions while on the move had gone. Maybe, it was a considered opinion. That statement is useful in my constituency. I need to expand primary education and secondary education in Nambale in order to catch up with the rest of Kenya. It is crucial that we continue to invest in education. Be that as it may, we are facing a major crisis in respect of the Teachers Service Commission not only in teacher recruitment but also in teacher deployment. One of the reasons as to why the TSC is unable to deploy teachers effectively is that they do not have the requisite numbers. Parliament must continue to support the TSC, so that they can get more and more resources, so that they can reduce the deficit that has been said to range between 40,000 and 80,000 teachers. Certainly, the recruitment rate of 5,000 teachers per year will not help much. So, that is an area we must look at. Hon. Temporary Deputy Speaker, on the issue of social protection and transfer payments, let us remember that every shilling that we give to the elderly members of our society supports a younger generation. They are spending it directly in productive sectors. So, it is not a dead loss. In fact, it has a significant multiplier effect. It is advantageous that we give that money to the lowest income earners. There is the possibility that, in their consumption patterns, they will support investment. How? By creating demand in the rural areas, which, in turn, increases the supply response. They will do it by creating demand in the rural areas which can elicit supply response. Therefore, transfer payments to the elderly people,,who are particularly targeted--- I think it is a great idea. Of course, the vulnerable population is of orphans, widows and street children.
Hon. Speaker, the Parliamentary Service Commission (PSC) – of course that is a sacred cow; but I must touch on it as well. We got increased allocation and I really hope 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.
that the PSC will invest in improved and modernized systems. They should mechanize a bit more, so that we become a model of efficiency in the country. Among all of the commissions, we must be a model of efficiency. I think, much as they are doing a good job, there is still a significant room for improvement in systems. Not just the buildings we are putting up that are very good, indeed. I think there are many other areas where we should provide leadership. I am glad that Parliament---
I assure you of that.
I am glad that a PSC hon. Member is here and he has assured me that, that is going to happen with the increased resources that we are going to give them. I sit with him in the same Committee; he is great guy and we are going to see that happening continuously as we go forward. It is really important for the welfare of this nation, if this Parliament is efficient. I know it is thriving and we need to do a bit more on that. Finally, I want to save time for others as well. The issue of maternal health care is a great initiative by the Jubilee Government; it is trying to implement its manifesto. I say kudos to them. When I look at it from my sub-county, or my constituency point of view, my worry is that it is not very good. But facilities that provide access to subsidized maternal health care are extremely limited. Unfortunately, as we speak now, a lot of investment has now gone to the counties. Of course, for us to benefit from those hospitals, that is levels one, two and three when we include maternity outlets--- In my constituency what we call maternity is just any structure that has been put up and where a nurse shows up a couple of hours a day. They are really basic. We need to invest in that area as well to take advantage of the maternal health budget provision. The subsidy on maternal health is highly appreciated by the community. I just wanted to emphasize it. As I conclude, we talked about food security. If you look at the unit cost of doing irrigation--- This data is available globally. It is not very satisfying to know that we want to get one million acres under irrigation. I am repeating what I said after the Presidential Address. The cost at which you get that incremental production from the one million acres is extremely high. Remember it is the same region where we had Bura Irrigation Scheme in the 1970s, and it turned out to be the most expensive scheme in the whole world; it did not help us much. This was because there were other aspects to it; the management aspect was very important. Hon. Temporary Deputy Speaker, it is very important to distribute this food security related support systems to different ecological zones. This is because our marketing systems are not efficient enough to carry that surplus from Galana down to the border in Busia at a competitive cost. Even in some other areas that are more in need--- It is better that we get a local solution. But there are also other initiatives and I like the idea of subsidized fertilizers and improved seeds. But then its distribution must be done effectively. With those few remarks, I support the Motion and thank the Committee for doing a great job.
(Hon. (Ms.) Mbalu): Thank you, hon. Bunyasi. Let us hear from hon. Lati Lelelit, as we wait to hear from hon. Angwenyi, if time allows. Thank you, hon. Angwenyi, for the assurance that it will be done. 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.
Thank you, hon. Temporary Deputy Speaker, for giving me this chance to contribute. Let me, first of all, thank the Budget and Appropriations Committee for the good work they have done for this country. There is a lot of work that goes on inside the Budget and Appropriations Committee and that people outside Parliament, probably, do not know. What we are doing here with this Appropriation Bill is trying to appropriate what we have passed in the Budget Estimates. This year’s budget is a well- funded budget, both in revenue and debts. Although it is a deficit budget, it is also an investment Budget, and that is what we should look at. Over Kshs500 billion is going to be spent on infrastructure and energy investments. Hon. Temporary Deputy Speaker, I want to stress on what hon. Ng’ongo and hon. A.B. Duale said about Kshs17 billion deficit in the Budget which, at the moment, is not funded. It is the making of the Treasury. This is because if you look at the Budget Policy Statement that went through this House, we approved Kshs35 billion for the Constituency Development Fund (CDF); it was not even Kshs33 billion; but for some reason, the Treasury found a reason to reduce CDF to about Kshs28 billion. In my opinion, the Treasury is still looking for ways to bring up the CDF allocation to Kshs33 billion. We are even very lenient to them. They should not touch things like the CDF. Everybody knows in this country the success story of CDF; it is in every part of this Country. Everybody who goes to their rural home knows that the best schools and dispensaries have been funded by the CDF. For the Treasury to interfere with the Constituencies Development Fund (CDF), is somewhat disrespectful.
Hon. Temporary Deputy Speaker, having said that, I want to appreciate that the Budget has covered various things that are very good for our country, including the standard gauge railway (SGR). This will make transport cheaper, efficient and we will compete with regional powers like Tanzania, which is already constructing a bigger port at Bagamoyo linking up Rwanda and Uganda. Those are our competitors.
The increase for free education is commendable because we need to allow access to education to many of our kids. The money that is going to vulnerable groups is another thing that I truly appreciate the Jubilee Government and the workings of this House through the Budget and Appropriations Committee.
A lot has been said about the Euro Bond and I want to say a few things about it. Before I do so, let me talk about another important aspect of this Budget. Under Article 221 of the Constitution of Kenya, we get to visit several places in this country. As Hon. Ng’ongo said, it is not in vain that the Budget and Appropriations Committee comes to your place any time they knock at the door. This year we have seen what this Committee has done; they have allocated money to every county that we went to; that is the counties that we visited last year and the ones we visited this year. I want to appreciate the Budget and Appropriations Committee for allocating Kshs100 million to a dam in Mararal that the people had asked for. I want to appreciate that they have funded other projects in Mbita, Nyeri and many other places. Hon. Ng’ongo made it very clear that the workings of this Committee, particularly public hearings provided for by the Constitution of Kenya, will not be in vain. Next year we will go to different counties, and for Mara Road in particular I want to appreciate the public hearings through Hon. ole Ntutu for giving us the very important tourists’ road in Maasai Mara. We have that road; it is a road that is 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.
important for an important industry in our country. I think the Budget and Appropriations Committee is doing a fine job, and we need to appreciate it.
On the Euro Bond that we have just floated, it is the first in our Budget. This is the first time we have incorporated bond proceeds into our Budget. There is nothing that we can say that is negative about this bond; if you look at the benefits that we can have from this bond, they trigger down to the wanjikus of our villages. We are bringing about US$2 billion into our country, which is almost 50 per cent of the imports cover that we have today in our country. That will definitely strengthen the Shilling. Interest rates will come down because the Government will not be borrowing locally; there will definitely be the crowding out effect. The other thing that is not mentioned here about this bond is that the Government owns about Kshs52 billion of syndicated local loans. We will pay those loans because they are very expensive in terms of interest. We will save in terms of interest expenses.
The other thing about this bond that is really good is the global bond participation. We will get out there in the markets outside this country; that will enable our companies to borrow abroad and be benchmarked on the interest rate that the country can get. We got less than 7 per cent for the ten-year bond and 5 per cent for the 6-year bond.
Finally, we want to ask ourselves: Why was this bond so successful? The very important and obvious factors are the positive sentiments about Kenya’s economy. Our economy is well diversified; it has tourism, finance and everything. We are not a resource dependent economy like oil, a single resource. The other thing that we should know helped us float this bond in a big way is that today in the global markets, the Euro zone and Americas, there is something called liquidity traps and interest rates are almost zero. Of course, there is excess liquidity in those countries and they are trying to harvest yields from far markets like Kenya.
With those few remarks, I beg to support.
Thank you, Hon. Temporary Deputy Speaker, for giving me a chance to contribute to this Motion. First, I want to thank the Budget and Appropriations Committee. I also want to thank the National Treasury and the the Director of Budget. They have done a great job; they have considered nearly all areas of this country. They have included all areas of this county; the places can benefit from the resources that we raise in this country.
I will start with health. From the Development budget, it has been given Kshs14 billion. I hope that will be applied to develop facilities such as Kenyatta National Hospital (KNH), which needs a lot of resources. I hope it will reach Kisii Level 6 Referral Hospital, which was recently declared so. I wonder why my colleague from Kisii was unhappy that we asked the President to give us Level 6 a referral hospital. He said that was wrong. I can tell you that we will get money to do that hospital; so he should not complain. The President has the power---
(Hon. (Ms.) Mbalu): Hon. Angwenyi, thank you for your contribution. You will have your nine minutes in the next sitting.
(Hon. (Ms.) Mbalu): Hon. Members, thank you for the requests: Hon. (Prof.) Nyikal, Hon. Limo and the rest in the list. There are another five requests. I am sure we will continue next time.
Hon. Members, we have come to the end of today's sitting. Therefore, the House stands adjourned until Thursday, 26th June, 2014, at 2.30 p.m.
The House rose at 6.30 p.m.