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"id": 1476892,
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"speaker_name": "Sen. Omogeni",
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"id": 13219,
"legal_name": "Erick Okong'o Mogeni",
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"content": "reflection of the financial position of PACOSO. I appeal to the journalist who wrote that story to always cross-check his facts before releasing such a story. When I was talking to Hon. Makau, there was a Kenyan who had come to see me in my office. There are some laws we pass on this Floor that are extremely damaging to the pockets of Kenyans without thinking. At times, even damage to our staff who support us here. That Kenyan told me that the deductions from the Social Health Insurance Fund (SHIF), which is at 2.75 per cent of the gross salary of Kenyans, and 1.5 per cent from the Housing Levy have caused some Kenyans to have a negative net income. When they were applying for these loans, there was no projection that a new taxation will come in form of a Social Health Insurance Fund (SHIF) and housing levy that will eat deep into the payslips of Kenyans. As MPs also, notwithstanding the party that sponsored us to this House, we should legislate having in mind the interests of Kenyans, including our own members of staff. I know what I am saying because I am a Commissioner. There are people who have fallen into problems because they are not able to service their SACCO loans, because of these very punitive levies that have been introduced into the payslips. Madam Temporay Speaker, the misfortune is this these levies are based on gross salary, not net. If you earn Kshs100,000 before the Pay as You Earn (PAYE) comes in, there is that liability to SHIF and housing levy. This is what is contributing to the default rates that we saw. I am appealing to all of us, me included, that we be conscious of these laws that we pass as they affect millions of Kenyans, both in Government and in the informal sector. I hope we will have a mechanism as Parliament, to always get a report that gives an implication on the negative effect a law will have on the payslips of Kenyans. Having said that, the point I want to make on this law is that the last time I read the Constitution, cooperatives is a devolved function. If you read the Fourth Schedule, Part Two, Section 7(e), cooperatives are a devolved function to our county governments. I am saying this because budget or allocation of money follows functions. Subsequently, when we come up with a law like this that seems to be giving a lot of responsibilities and duties to the Cabinet Secretaries, what that means is that in the budget-making process, this will be factored, because there is a law that has been enacted by Parliament that has given the Cabinet Secretary responsibilities. The Cabinet Secretary needs staff and to do supervision. As you have said, “he is the one who will declare redundant cooperatives.” He will automatically in his budget request and say, ‘look we have new pieces of legislation that have been passed by Parliament that we need to implement as a Ministry, so we need an increased allocation in our budget.’ Madam Temporary Speaker, can we not trust our CECMs at the county level? They may not be our friends. I have one in Nyamira, but luckily for me, he is my friend in charge of cooperatives. He is called Bernard Maina from North Mugirango, Mawawa Ward. The electronic version of the Senate Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Director, Hansard and AudioServices, Senate."
}