HTTP 200 OK
Allow: GET, PUT, PATCH, DELETE, HEAD, OPTIONS
Content-Type: application/json
Vary: Accept
{
"id": 178479,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/178479/?format=api",
"text_counter": 239,
"type": "speech",
"speaker_name": "Mr. Michuki",
"speaker_title": "The Minister for Environment and Mineral Resources",
"speaker": {
"id": 183,
"legal_name": "John Njoroge Michuki",
"slug": "john-michuki"
},
"content": " Mr. Speaker, Sir, I beg to move that the Appropriation Bill, 2008, be now read a Second Time. Mr. Speaker, Sir, His Excellency the President has signified his consent to this Bill. The Appropriation Bill, 2008, seeks statutory approval from this Parliament of the expenditures contained in the Recurrent and Development Estimates for the Financial Year 2008/2009, which were laid before this House on 12th June, 2008. Mr. Speaker, Sir, the authority sought include the issuance of funds out of the Consolidated Fund as approved by this House on 25th June, 2008, through the Vote on Account in accordance with the Constitution of Kenya. November 26, 2008 PARLIAMENTARY DEBATES 3623 Mr. Speaker, Sir, due to the busy schedule of this House, the Committee of Supply was only able to debate, in detail, and approved eight votes as follows:- 1. Vote 06 - Ministry of State for Planning, National Development and Vision 2030. 2. Vote 10 - Ministry of Agriculture. 3. Vote 12 - Office of the Deputy Prime Minister and Ministry of Local Government. 4. Vote 30 - Ministry of Energy. 5. Vote 31 - Ministry of Education. 6. Vote 36 - Ministry of Lands. 7. Vote 42 - Ministry of State for Youth Affairs and Sports. 8. Vote 57 - Ministry of Nairobi Metropolitan Development. The rest of the votes were approved through the Guillotine Procedure. Mr. Speaker, Sir, allow me to thank hon. Members for their continued support and constructive debates on the above votes. I also thank hon. Members for approving the Vote on Account that has enabled the Government to continue to provide services to the Kenyan people without interruption. Mr. Speaker, Sir, on 12th June, 2008, the Minister for Finance tabled to this House the Budget for the Financial Year 2008/2009. The Estimates that amounted to Kshs761.7 billion are made up as follows:- 1. Recurrent expenditure - Kshs308.89 billion 2. Development expenditure - Kshs196.2 billion 3. Consolidated Fund Services -Kshs174.6 billion 4. Contingency reserve - Kshs2 billion Mr. Speaker, Sir, the above expenditures were to be financed as follows:- 1. Ordinary revenue - Kshs467.9 billion 2. Appropriations-in-Aid - Kshs44.4 billion 3. Donor projects grants - Kshs33.8 billion 4. Loans - Kshs47.4 billion 5. Privatisation proceeds - Kshs8 billion 6. Domestic borrowing - Kshs35.9 billion 7. Sovereign bonds - Kshs33.6 billion 8. Domestic loans bond - Kshs18.5 billion 9. Debt roll-over - Kshs66.8 billion 10. Other financing - Kshs5.7 billion Mr. Speaker, Sir, we have been implementing the Budget on the basis of these estimates and assumptions. Mr. Speaker, Sir, whereas we expect that our projections will remain generally on course, there are risks and challenges that could threaten to derail our commitment to operate within our fiscal framework. Mr. Speaker, Sir, as hon. Members are aware, financial discipline and strict adherence to hard Budget constraints are ingredients that are critical to maintaining a sustainable macro- economic framework and, indeed, a sustainable economic development and poverty reduction. Mr. Speaker, Sir, risks and challenges are likely to emerge from the following:- 1. Overall, our revenue performance has, so far, been slightly below target, reflecting a slow-down in economic activities in the first quarter of this year, following the aftermath of post election skirmishes in the country. But we have put in place administrative measures to ensure that we are back on track. We are confident to achieve the revenue receipts targeted for the whole financial year. For example, Mr. Speaker, Sir, the operation of a 24-hour Port and also the administrative changes that have been made in the place have increased collection of revenue from Customs, considerably. That is an example of the administrative measures we have put in place. 3624 PARLIAMENTARY DEBATES November 26, 2008 2. With respect to our domestic borrowing, we are below our programme target due to under-performance in the Treasury Bill (T-Bill) market, mainly in October, this year. However, recent developments in the market indicate that we shall be able to reach our target by the end of the fiscal year. Nonetheless, we have adopted a cautious domestic borrowing strategy to minimise debt servicing costs. Mr. Speaker, Sir, we are also monitoring the situation in the international market to launch the Sovereign Bond. In this regard, we are encouraged by the aggressive and co-ordinated measures to mitigate the global financial crisis that were announced by the Group of 20 countries during their summit in Washington DC on 15th November, 2008, a meeting at which Africa had only one country present, South Africa. If these measures work as expected, we may be able to go to the international market before the end of the fiscal year. In the meantime, we are going ahead with preparatory work on the issuance processes as we await the appropriate timing. Notwithstanding the above challenges, spending Ministries continue to request additional funding to finance emerging priorities that were not anticipated during the preparation of the current Budget. However, should there be need for modifications in the Budget, we will do so in the context of the next Supplementary Estimates. In this regard, we will pay special attention to strategies, which are expected to provide the impetus for continued growth of the economy. These include:- (i) Sustaining macro-economic stability and strengthening the financial sector to ensure low interest rates, a low rate of inflation and a stable currency in order to foster rapid sustainable growth and creation of jobs; (ii) Improving the investments environment by reducing the cost of doing business; (iii) Expanding infrastructural capacity that will encourage investments, thereby facilitate faster growth. To this end, we are urging the spending Ministries, particularly the Ministries that have infrastructure, to expedite the contracts they have already granted. For example, the Ministry of Public Works has over Kshs62 billion, which, if spent on time, should create the necessary multiplier effect within the economy. Mr. Speaker, Sir, the Appropriation Bill, 2008, contains details of supply for each Vote, including the amount that shall be applied as Appropriations-in-Aid (A-in-A). However, I wish, at this juncture, to mention some of the notable allocations to various Votes. Vote 01 - Ministry of State for Provincial Administration and Internal Security. For recruitment of officers, Administration Policemen (APs) and the General Service Unit officers (GSU), we have provided Kshs1.86 billion. For purchase of motor vehicles for security operations, we have provided Kshs1.279 billion. For purchase of police and security equipment, we have provided Kshs1.32 billion, and for risk allowances for police officers and APs, we have allocated Kshs4.6 billion. Vote 03 - Ministry of State for Public Service. For the last phase of voluntary early retirement scheme, we have provided Kshs220 million. Vote 04 - Ministry of Foreign Affairs - construction of buildings in Abuja, our office in Nigeria, we have provided Kshs200 million; we have also provided Kshs1 billion to the Ministry, whose Minister is sitting near me here, to buy buildings in Tokyo. Vote 05 - Office of the Vice-President and Ministry of Home Affairs - for salary adjustments and risk allowance we have provided Kshs2.8 billion; for construction of buildings and prison houses, we have given Kshs551.5 million. For specialised materials and supplies to the prisons, we have allocated Kshs1.422 billion. Vote 06 - Ministry of Planning, National Development and Vision 2030 - the November 26, 2008 PARLIAMENTARY DEBATES 3625 Constituencies Development Fund is allocated Kshs10.1 billion, while preliminary preparation for the population census gets Kshs500 million. The Census is going to be next year, and the preparatory work, which will begin this year, is estimated to cost Kshs500 million. Vote 07 - Ministry of Finance - equity participation in Telkom has been provided with Kshs2.5 billion; equity participation in the National Oil Corporation of Kenya has Kshs500 million, and the Kenya Revenue Authority is allocated Kshs7.1 billion. Salary awards for civil servants in JG \"D-L\", is allocated Kshs3 billion. Arbitration fees in connection with Exim Bank and others, is allocated Kshs670 million. Emergency relief and refugee assistance is allocated Kshs1.7 billion, while payment of Duty for the disciplined forces as per the East African Customs Management Act, 2005, is allocated Kshs600 million. Purchase of scanners and other capital expenditure for the KRA is allocated Kshs600 million. Vote 10 - Ministry of Agriculture - the Coffee Development Fund is allocated Kshs250 million. The Tea Research Fund and the Tea Board of Kenya have been allocated Kshs77 million. The restructuring of the Coffee Board of Kenya has Kshs110 million and farm machinery services is allocated Kshs195 million. The National Agricultural Accelerated Inputs Access Programme is allocated Kshs300 million, while Njaa Marufuku Food Security and Management Programme has been allocated Kshs150 million. Vote 11 - Ministry of Medical Service, whose Professor is in this House, if he has not gone out as I was speaking. Purchase of drugs and non-pharmaceutical for health facilities, Kshs3.810 billion; purchase of medical equipment, Kshs420 million; and, salaries for medical staff in public health facilities and national referral hospitals, Kshs18 billion. Vote 12 - Office of the Deputy Prime Minister and Ministry of Local Government: Construction of roads, Kshs640.2 million; construction of buildings, Kshs767 million; construction of buildings, Kshs1.207 billion; and, grants to other levels of Government, that is, the Local Authorities Transfer Fund (LATF), Kshs9.250 billion. Vote 13 - Ministry of Roads: Settlement of pending bills, Kshs1.1 billion; counterpart funding, Kshs2 billion; and, construction of roads, Kshs20.4 billion. Vote 18 - Ministry of Gender and Children Development: Grants to orphans and vulnerable children, Kshs546 million; and, grants to Women Enterprise Development Fund, Kshs315 million. Vote 20 - Ministry of Water and Irrigation: Dam construction, Kshs1 billion. Vote 21 - Ministry of Environment and Mineral Resources: Nairobi River restoration and rehabilitation programme, Kshs35.1 million; which I would like this House to know is not enough. Acquisition of aircraft for the Department of Resource Survey and Remote Sensing, Kshs170.5 million. Vote 24 - Ministry of East African Community: Contribution to the East African Community, Kshs126.6 million. Vote 29 - National Assembly: Mortgage Scheme Fund, Kshs1.4 billion; 1963/1983 Members of Parliament Pension Fund, Kshs200 million. We have provided for those who went through this House and are still alive. Also, money can be paid to their dependants. Refurbishment of Parliament Chambers, Kshs360 million; purchase of specialised equipment, including radios and others within Parliament, Kshs213 million. Vote 30 - Ministry of Energy: Rural Electricity Authority, Kshs8.8 billion; expansion of power transmission, Kshs500 million; emergency power supply, Kshs3.4 billion; tax refunds, KPLC, Kshs3.5 billion; and, geothermal expansion, Kshs4 billion. Vote 31 - Ministry of Education: Salaries for District Education Services, Kshs943.4 million; grants for free primary education, Kshs8.46 billion; subsidies for free secondary education, Kshs11.22 billion; construction and refurbishment of buildings, Kshs634.14 million; and, School Feeding Programme (food rations), Kshs414 million. 3626 PARLIAMENTARY DEBATES November 26, 2008 Vote 32 - Ministry of Information and Communications: Kenya Transparency Communication and Information Project, Kshs1 billion; business process outsourcing, Kshs900 million; and, Brand Kenya Board, Kshs203 million. Vote 33 - Electoral Commission of Kenya: Provisions for by-elections, Kshs386.4 million. Vote 35 - Ministry of State for Special Programmes: Purchase of Strategic Grain Reserves, Kshs3.4 billion; family relief services, Kshs1 billion; and, humanitarian fund for Internally Displaced Persons (IDPs), Kshs750 million. Vote 40 - Ministry of State for Immigration and Registration of Persons: Integrated Persons Registration System has been allocated Kshs270 million. Identity Cards material has been allocated Kshs386 million. Vote 42 - Ministry of Youth Affairs and Sports: Construction of roads, Kshs900 million; and, grants to Youth Enterprise Development Fund, Kshs500 million. Vote 43 - Ministry of Higher Education, Science and Technology: Grants to technical training institutes, Kshs550 million and grants to universities, Kshs13.9 billion. Vote 44 - Ministry of Housing: Purchase of BP and Shell House, which is going to be the Office of the Prime Minister, Kshs700 million. Vote 49 - Ministry of Public Health and Sanitation: Purchase of medical equipment, Kshs419 million and purchase of drugs and non-pharmaceutical for health facilities, Kshs3.498 million. Vote 55 - Ministry of Forestry and Wildlife: Construction of roads in the parks and other civil works, Kshs663 million. Vote 57 - Ministry of Nairobi Metropolitan Development: Construction of roads, Kshs750 million. Vote 58 - Ministry of Development of Northern Kenya and other Arid Lands: Construction of civil works and water, Kshs420 million. Vote 60 - Ministry of Industrialisation: Industrial research, Kshs395 million. Mr. Speaker, Sir, I want to assure the hon. Members that the funds allocated to the Ministries and departments shall be utilised efficiently to achieve the purposes and provide services for which this House has approved. Financial discipline and economy will be our guiding principle to achieve macro-economic stability that will facilitate the achievement of the projected economic growth. Mr. Speaker, Sir, Clause 2 of the Bill provides for the issue out of the Consolidated Fund of a sum of Kshs492,868,495,680, and appropriate the funds to various services and purposes during the financial year ending 30th June, 2009. This sum includes the amount authorised by Parliament on 25th June, 2008, through the Vote on Account in accordance with Section 101 of the Constitution of Kenya. Clause 3 makes provision for amounts to be applied as Appropriation-in-Aid (A-in-A) for various services and purposes. Having briefly appraised hon. Members of the objects and reasons for the Bill, may I now request the House to pass it in order to authorise the issue of funds from the Consolidated Fund to meet expenditure as contained in the Recurrent and Development Estimates for the 2008/2009 Financial Year. Mr. Speaker, Sir, I wish to, once again, thank hon. Members for their co-operation and insightful debate during the Committee of Supply. I am sure that today's debate will be constructive and very informing. In this regard, I want to assure hon. Members that I will take their views seriously and, as much as possible, take them into account at the appropriate time. With those few remarks, I beg to move."
}