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"id": 192745,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/192745/?format=api",
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"type": "speech",
"speaker_name": "Mr. Kinyanjui",
"speaker_title": "The Assistant Minister for Roads",
"speaker": {
"id": 48,
"legal_name": "Lee Maiyani Kinyanjui",
"slug": "lee-kinyanjui"
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"content": " Thank you, Mr. Temporary Deputy Speaker, Sir. I rise to support the Budget Estimates given this year. Maybe, before I start, I would like to pay tribute to Kenyans who, for the first time, during a very troubled year, have been able to get enough funds to finance our Budget. In connection to that, it is worth noting that about 87 per cent of our Budget will now be financed through local funds that will be accessed through our taxes. So, I wish to recognize and, indeed, congratulate Kenyans who, through their hard work, have been able to contribute and actually make our Budget a success. Many of us will remember that not too many years ago, it was, indeed, a tough task to do a budget in Kenya. That is because more than half of our Budget was expected from donors. So, I think it is a big step for Kenyans that, at least, as we do our Budget, we are largely able to finance it. Secondly, Mr. Temporary Deputy Speaker, Sir, I would like to commend the Minister for his attempts to increase the tax bracket. For example, as we know, for a long time, the increase in revenue that Kenya Revenue Authority (KRA) gets through the collection of taxes is as a result of increasing the tax bracket, and not necessarily because of increasing taxation. That effort is well acknowledged. It will go a long way in terms of making our country self sufficient. Mr. Temporary Deputy Speaker, Sir, I would also like to say that a country cannot boast of independence if it cannot meet its needs in terms of food, infrastructure and other requirements like health and energy. It is important that as Kenyans, as we strive to be an independent nation, we are able to meet our demands and needs financially. Secondly, Mr. Temporary Deputy Speaker, Sir, as we are aware, the world is going through a serious food crisis. As a result of that, the global food prices have shot up. That has come as a result of the increase in oil prices which, as we all know, is an important component in the production of fertilizer. So, fertilizers have actually gone up by over 50 per cent in the last few months. Many of our farmers may not be able to use fertilizer when it comes to farming and, therefore, we expect a decrease in terms of the output. Towards that end, I strongly laud the Budget for waiving the tax on wheat. It is actually not a waiver but a reduction. The tax on imported wheat was reduced from the current 35 per cent to 10 per cent. I also wish to note that 35 per cent of wheat in Kenya is produced locally. The rest is imported. So, the high taxation on imported wheat has tended to make our wheat products more expensive. So, we commend that move. It will go a long way to reduce prices of wheat products. On the issue of taxation, Mr. Temporary Deputy Speaker, Sir, I would like to note that last year, the Government slapped a 120 per cent taxation on polythene bags. It was meant to discourage the use of that particular product and, thereby, reduce the menace caused by the same. Unfortunately, the increase in that particular bracket has also meant that prices of most of the consumer products like milk, bread and other consumables that are packaged using polythene bags have also gone up significantly as a result of that. We would request that owing to the current June 24, 2008 PARLIAMENTARY DEBATES 1359 increase in all other ingredients, tax on polythene bags should be reviewed in view of the current shortage and increase in consumer prices. Mr. Temporary Deputy Speaker, Sir, the other issue was the reduction or removal of taxation on storage tanks for milk. As you are aware, a lot of agricultural produce in this country still goes to waste, because of poor storage technics. Therefore, the reduction of taxation on milk tanks will mean that more of it will be available and our milk will be sold in a more hygienic way and it will, therefore, increase its life and reduce wastage. This will go a long way in improving our food security. Mr. Temporary Deputy Speaker, Sir, I would also like to focus on the issue of roads. As you are aware, the Minister allocated about Kshs65 billion for the road sector for the next financial year. This is, indeed, one of the biggest allocations we have had since Independence. We want to commend the Minister for such a huge and generous contribution towards that particular sector. However, I would like to note that as envisaged in our Vision 2030, roads will play a key role in the development of this country in the few coming years in the sense that without proper roads, access to the market has always been a big challenge. Unless that is addressed, then, it means a lot of the food that is available in the shamba will not be able to get to the consumers in the urban centres. To this effect, this allocation will help in increasing market access, especially in many of the areas where agricultural produce is not able to find its way to the market, thereby leading to a lot of loss and increase in poverty levels. Mr. Temporary Deputy Speaker, Sir, I would also like to note that the continued development of the road infrastructure in this country needs to be looked at more seriously. As you are aware, we are spending a lot of money every year towards the maintenance and development of our road infrastructure. However, because of the overloading of trucks and other road users, our roads do not last long. As it has been noted earlier, we have always stressed that transporters should use the railway to transport their goods. If the railway will be more efficient, more of the cargo that is actually on the roads will be transferred to the railway and, therefore, increase the lifespan of our roads. So, we would expect that in future, the railway network should be critically evaluated with the intention of ensuring that we increase more cargo on the railway and, therefore, reduce the burden on the roads. Mr. Temporary Deputy Speaker, Sir, I would also like to look at the issue of manufacturing and some of the issues that were touched on. I would like to note that the cost of energy in this country remains one of the highest in the region. This, therefore, has made our products more expensive than our competitors. Thank you."
}