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{
"id": 193492,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/193492/?format=api",
"text_counter": 74,
"type": "speech",
"speaker_name": "Mr. Kimunya",
"speaker_title": "The Minister for Finance",
"speaker": {
"id": 174,
"legal_name": "Amos Muhinga Kimunya",
"slug": "amos-kimunya"
},
"content": "Mr. Speaker, Sir, although we made some good progress towards creating youth employment in the recent past, there are reports that many income-generating projects financed through the Youth Enterprise Fund were negatively affected by the post-election violence. We expect the ongoing peace and stability to enable the youth groups to recover from those losses and expand their operations. To demonstrate our commitment to making the Youth Enterprise Fund accessible to the many enterprising youths in our country, I have once again increased the Fund by a further Kshs500 million in 2008/2009. Immediately the absorption level increases on this, we will be happy to continue increasing the Fund. I have further allocated an extra Kshs250 million towards the Youth Employment Centres countrywide to provide support, information and guidance to the various youth organizations on entrepreneurial ventures and management. In addition, efforts will be made to enhance access to the Youth Enterprise Fund, and to ensure that it achieves its intended objective of empowering the youth, and that the money does not just remain in banks while the youths could be utilizing it. Mr. Speaker, Sir, this Budget further recognises that enhanced access to education is critical for broadening employment opportunities and reducing poverty. For Kenya to develop and create productive opportunities for our youth, primary and secondary education alone will not be enough. There is, therefore, the additional need for tertiary and vocational education, and to upgrade our science and technology base. To this end, the Government will initiate support for middle level technical colleges in order to equip the youth with life-long skills in such areas as building and engineering trades, craftsmanship, science and technology and entrepreneurial capabilities. In this regard, Kshs465 million has been allocated to cater for free tuition in accredited technical training and vocational colleges countrywide, starting from January 2009. I have been told that this time will be required to vet all the colleges and determine the ones that can be accredited to provide this education. I expect all the youth to take advantage of this offer, acquire practical skills and contribute towards our national building. I would like to appeal to the hon. Members to also 1146 PARLIAMENTARY DEBATES June 12, 2008 identify the various technical and vocational training centres within their constituencies, and to help them improve through the Constituencies Development Fund (CDF) to a level where they could be accredited to start providing that training to our youth at a subsidised cost. Mr. Speaker, Sir, through sports, we are able to mobilize the youth for environmental conservation and other income- generating activities. In this regard, starting 2008/2009, and continuing over the medium-term, the Government will expand and improve accessibility to recreational sporting facilities for Kenyans. We will also initiate and make operational a national football competition countrywide in every constituency, which will act as a mechanism to productively mobilize the youth towards environmental and economic activities. To this end, I have allocated a sum of Kshs1 million to each constituency for purchase of sporting kits, including balls and uniforms, to initiate community soccer competitions. I also would like to urge our private sector players to take more interest in community sports, and to support this initiative by sponsoring more of the local tournaments to make sure that our youths are continuously and positively engaged. Mr. Speaker, Sir, labour-intensive road construction and other works have been used to create employment opportunities not only in our country but also in a number of other developing countries. Through this Budget, we have allocated Kshs4 billion to expand and make motorable various rural road networks under the labour-intensive methods. I have also allocated, specifically, Kshs900 million, as a first step, to the construction of Garissa-Hola Road, which will be constructed exclusively by the National Youth Service (NYS). The NYS will also be contracted to construct several dams, and other water works, across the country, which will also involve the local youth in those project areas. The implementation of those projects is expected to create thousands of jobs for youths, facilitate commerce and trade and improve the overall wellbeing of the rural people. In addition, the Government will facilitate the establishment of youth eco-villages, where the young person will participate in projects covering bee-keeping, tree-planting for fuel and timber, supply of renewable energy and recycling of solid waste in urban areas. To make these projects operational, we will, in consultation with stakeholders, propose a framework for funding of such initiatives. Mr. Speaker, Sir, I now turn to measures to create youth employment through expanded trade. We are yet to exploit fully Kenya's geographical endowment such as the Port of Mombasa and its hinterland. In addition to the reforms aimed at improving efficiency and competitiveness of our port that I mentioned earlier, the Government, in the year 2008/2009, review the current guidelines on licensing of container freight stations, and initiate a process of establishing a Free Port at Dongo Kundu in Mombasa. This free port, which will be developed in partnership with the private sector, is expected to attract a large number of commercial tourists, thereby generating downstream benefits, including employment opportunities for our youths in the hospitality industry. The free port should also facilitate the expansion of businesses by making readily available raw materials and inputs. I believe that when it is ready, there will be no need of travelling to Dubai to do shopping when we can do it in Mombasa. Mr. Speaker, Sir, I now turn to measures to promote regional development and reduce poverty. The third broad theme of this Budget is on reducing poverty and addressing the regional inequalities. The recent crisis brought to our attention the many lessons concerning the underlying challenges we face as a country. The Grand Coalition Government now recognises that allowing inequality to persist can negatively impact on growth, threaten national unity and affect social stability. Part of our strategy to safeguard the prevailing peace and stability will involve narrowing the rural-urban and regional income gaps, as well as disparities in employment, incomes and assets through interventions, some of which I have already mentioned under the growth and employment section. June 12, 2008 PARLIAMENTARY DEBATES 1147 Mr. Speaker, Sir, although the CDF was intended to ensure equitable development in all parts of our country, some regions are yet to benefit from this devolved Fund due to governance related challenges. To improve the effectiveness of devolved funds in achieving regional development, the Government will institute accountability measures and guidelines to reduce duplication and mainstream these funds to the national development priorities. We will also follow up more closely on the funds that are channelled to the local authorities, like Local Authorities Transfer Fund (LATF), to ensure that they improve the lives of wananchi at the local level. Mr. Speaker, Sir, the Government is very much aware of the hardships Kenyans, and especially the poor are experiencing as a result of higher food prices and which have raised the possibility of us moving away from achieving the Millennium Development Goal of halving income poverty by 2015. Many of the causes behind the high food prices are beyond the control of the Government and include the global climate change, which has affected global food production, intensified use of bio-fuel by advanced countries in response to the high fuel prices, increasing the cost of fertiliser and fuel and the increase in incomes in the emerging markets such as China and India which have changed their eating habits and translated to increased demand for food on a global basis. Mr. Speaker, Sir, cognisant of the importance of food security for Kenyans, the Government has in the recent past made the agricultural sector one of the key sectors for development, along with physical infrastructure, education and health. In addition, in order to make food items affordable to wananchi, the Government has in the past zero-rated Value Added Tax (VAT) on wheat flour, milk and maize flour. To further cushion the poor against the rising cost of living, I will be proposing to zero-rate VAT on bread and rice to reduce the import duty on wheat from 35 per cent to 10 per cent. In addition, maize imports for the Strategic Grain Reserve would be imported duty free and this should help dampen the pressure on maize prices. I expect the suppliers of these goods to pass the benefits to the consumers immediately we remove the VAT. Furthermore, some of the recent actions the Government has undertaken should help ease the supply constraints. This, as hon. Members are aware, include restoring peace and the resettling of the Internally Displaced Persons (IDPs) back on their farms, provide the farm inputs such as seeds and fertiliser and enhancing the Strategic Grain Reserve by an extra two million bags to increase the supply of grains. Mr. Speaker, Sir, the Government intends to increase the level of the Strategic Grain Reserve from the current four million bags to six million bags in the next fiscal year and by another two million bags in the next fiscal year to a total of eight million bags. The National Cereals and Produce Board (NCPB) will also play a proactive role in sourcing fertiliser at competitive international prices to help stabilise domestic prices. The good news is that we are in consultation with Uganda and Tanzania on setting up a regional fertiliser factory to ensure long time sustainable supply of this commodity."
}