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{
"id": 194501,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/194501/?format=api",
"text_counter": 137,
"type": "speech",
"speaker_name": "Mr. Kiraitu",
"speaker_title": "The Minister for Energy",
"speaker": {
"id": 93,
"legal_name": "Kiraitu Murungi",
"slug": "kiraitu-murungi"
},
"content": " Mr. Deputy Speaker, Sir, I am aware about the impact of high fuel prices on the cost of food. We are also reading about what is happening around the world. There have been food riots in Senegal, Ivory Coast and other areas which are also caused by high fuel prices. We said, as the Government, that we are looking at various ways in which we can reduce the impact of high oil prices to our own economy. However, as I said, some May 13, 2008 PARLIAMENTARY DEBATES 975 of these factors are beyond our control. As I said, OPEC reports indicate that in the next three years, the oil prices could very much be double what we have today. It is going to depress the economy even more greatly than it is today. However, as the Government, we have to take bold decisive measures, at least, to make sure that we do not have food riots in this country. Mr. Deputy Speaker, Sir, regarding the cost of heating and meeting the energy needs of the poor, we have been supplying electricity to rural areas. We are aware that even in those areas where we have supplied electricity, people do not use it for cooking. They use electricity for lighting. So, we have started a new programme in my Ministry which we are calling the Kenya Energy Sector Environmental and Social Responsibility Programme. Mr. Deputy Speaker, Sir, under the programme, we want to increase the supply of firewood in this country. We have to be realistic that, even if we keep singing that people should not cut down trees, so long as they need them for their heating and cooking needs, they will continue to cut down the trees. We have set aside some funds for that purpose. We have set aside about Kshs200 million. I want to talk to hon. Members so that we co-operate with women and youth groups, so that we have massive tree planting in this country. We will be calling a Kamukunji to discuss this with you, so that we partner. Mr. Deputy Speaker, Sir, regarding the price controls, we are monitoring the situation on a daily basis. The highest prices have been recorded in Nairobi. The prices are lower upcountry. The oil companies are making a margin of between 4 per cent and 6 per cent. Some of them are pulling out, because they are saying that our market is not profitable. Right now we are talking about M/s Chevron and M/s Caltex also wanting to pull out. Initially, we had M/s Shell BP. If we feel that the margins have reached an exploitative rate, then we are going to impose price controls because I have those powers. Regarding the issue of oil exploration, it is true that even before we have discovered oil, we have attended various seminars and international meetings to discuss the most prudent way of sharing oil revenue. Oil revenue is now traditionally being shared by three parties. First, we have the international companies which are taking the risk of exploring and drilling for oil. So, we give them the cost of oil exploration before we talk about anything else. Then we have the profit oil. We share this with those companies, because they are out to make some profit. Then the other share will come to the Government. As a matter of policy, we have said that in the areas where we discover oil, a certain proportion of that oil has to develop those areas. We have said that even before discover oil, the companies which are exploring for it have to do something for the communities which are hosting them. So, we have told Sinoko and other companies that, wherever they are, whether it is North Horr, Isiolo or Marsabit, we want to see some schools built by them in the process of exploration. If it is water, we want water to be pumped and supplied to the community. We are trying to deal with the local content issues even as exploration is going on. So, we are sensitive; we have learnt the dangers that oil production can bring, and are trying to take care of those aspects even before we strike oil. KILLING OF CHARLES NDUNG'U WAGACA AND NAFTALI IRUNGU"
}