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"id": 1116977,
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"type": "speech",
"speaker_name": "Kitui Rural, CCU",
"speaker_title": "Hon. David Mboni",
"speaker": {
"id": 13388,
"legal_name": "David Mwalika Mboni",
"slug": "david-mwalika-mboni-2"
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"content": "Energy, Ksh1.6 billion was used for stabilisation, and Ksh18.1 billion was used for infrastructure. The question is: what were we stabilising in infrastructure? If there is anybody or institution which should be blamed for the recent fuel prices, it is the National Treasury because they misapplied this money. When the Ministry of Petroleum requested for over Ksh5 billion, the balance which was there was only Ksh3.4 billion. So, it is very important that we ring-fence some of these special funds so that they can be used for the intended purposes. Hon. Temporary Deputy Speaker, it is important to note that petroleum prices in this country are the highest in the region simply because of high taxes and levies. In total, we have nine taxes and levies which account for 40 per cent of the total petroleum pump prices. So, it is important to review the prices. Some people think the higher the taxation, the higher the revenue we will collect. It can work in the opposite. In most cases, it does not work like that. It is because high taxation contributes to high prices. High prices reduce demand for goods and services. Therefore, production also goes down. Lower prices will encourage consumption. Consumption will encourage production. When people are consuming, they are also paying taxes. So, the mentality that we should tax everything highly may not work. Our neighbouring countries do not tax fuel highly. When the prices of petroleum products in Kenya became very high in the recent past, people in Western Kenya were going to Uganda to fuel their vehicles. Therefore, we were also losing tax revenue in the process. I want to talk about LPG. This House should know that we have a monopoly in the importation of LPG. We have only one big importer who imports over 90 per cent of the total LPG which is consumed in this country. So, the prices of LPG may not be driven by VAT but by the monopoly which is trying to maximise profits. It should be noted that many countries have applied to be licensed to import LPG and they have not been granted their wish. The Kenya Pipeline Company applied to construct a facility whereby anybody can import through that facility but that licence has not been provided. The Kenya Pipeline Company has money and land. They should be given licence to construct storage facilities so that the country can use the open tender system the way petroleum is being…."
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