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{
    "id": 1052377,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1052377/?format=api",
    "text_counter": 66,
    "type": "speech",
    "speaker_name": "Nominated, ANC",
    "speaker_title": "Hon. Godfrey Osotsi",
    "speaker": {
        "id": 13172,
        "legal_name": "Godfrey Osotsi",
        "slug": "godfrey-osotsi"
    },
    "content": " Thank you, Hon. Temporary Deputy Speaker. I also rise to support this Motion. As many Members have said, the Departmental Committee on Finance and Planning has done a wonderful job. This is a new trend of doing things. We want to encourage the Committee to continue carrying out such tasks to ensure that our public utilities are able to generate revenues that can support the economy. I also want to agree that for a long time, this particular service has been handled by only one company – Grain Bulk Handlers Limited. It is high time that we had this business liberalised so that we eliminate monopoly and create healthy competition. However, as it has been said by Hon. Oundo, some of those investments are so huge and one requires time to recoup one’s investment. As you note in the Report, in February 2018, the exclusivity of GBHL expired. In the same year, around April, KPA started the process of liberalising. Unfortunately, that has not been done to date. We still have a single operator who handles about 98 per cent of grains that are imported into this country. As some of the Members have pointed out, they are only paying USD3.85 per tonne. Other conventional operators pay a tariff of USD10.4. You can now see the kind of loss. If we opened up this business for other operators and more competition, we would see enhanced revenue for KPA and, of course, that money would be injected into the economy. Hon. Temporary Deputy Speaker, the Committee also looked at the Kenya Ports Authority Master Plan, which runs from 2018 to 2047. It talks about KPA coming up with alternative locations to discharge grain vessels for instance Lamu, Dongo-Kundu and even Kisumu. I think this is progressive and this is something that we would encourage the Government and KPA management to do. Even investment into critical infrastructure, opening up more wide berths, the state of the vessel handling equipment is very critical. However, considering that this business is capital intensive, I think the suggestion that the PPP framework be used is critical because this will now help new operators to have a new entry into this business. In addition, I am hoping that if these recommendations are implemented, we will see enhanced revenue for KPA and for this country. With those few remarks, I support."
}