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{
    "id": 1554347,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1554347/?format=api",
    "text_counter": 201,
    "type": "speech",
    "speaker_name": "Kitui Rural, WDM",
    "speaker_title": "Hon. David Mwalika",
    "speaker": null,
    "content": "I was reading The Nation newspaper today. There is a big writing on trade wars between China and the USA. The USA feels that Chinese products are affecting their industries back home and wants to increase their tariffs by 100 per cent to protect local industries. Hon. Temporary Speaker, the 25 per cent excise duty intended to protect local manufacturers of transformers from complete importation of transformers into the country. However, we need to note two things. First, the harmonised System (HS) codes for complete imported transformers and imported parts for assembling transformers are the same. The 25 per cent excise duty also affected imported parts used to assemble transformers in this country. Secondly, there are no transformer manufacturers in this country and East Africa. Therefore, excise duty affected the cost of transformers assembled in this country. We cannot import from East Africa by using common external tariffs because we do not have transformer manufacturers in East Africa. This made the whole exercise expensive for the country. The 25 per cent duty increase on the prices of transformers affected rural electrification. The prices of transformers went up by 25 per cent, affecting the Last Mile Connectivity Project from which every Member of Parliament yearns to deliver electricity to our people. It also affected the cost of manufacturing. The end products of power go up if the cost of transformers is raised. It also affected our competitiveness in the region because most manufacturers use electricity for manufacturing. It is an input in infrastructure and manufacturing. Reducing the cost will actually increase our competitiveness. Listening to Kenya Power and the Rural Electrification and Renewable Energy Corporation (REREC), this was affecting their existing budgets because they had already budgeted for the number of transformers they were going to buy. Increasing the cost of a transformer by 25 per cent means that they could not buy the number of transformers they budgeted for in this financial year. Kenya Power buys about 4,000 transformers to replace spoiled ones in the country. Therefore, I beg this House to support this amendment so that our Last Mile Connectivity Project is back on track. Thank you, Hon. Temporary Speaker."
}