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"speaker_name": "Mr. Wambora",
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"legal_name": "Martin Nyaga Wambora",
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"content": "Thank you, Mr. Temporary Deputy Speaker, Sir, for giving me this September 18, 2007 PARLIAMENTARY DEBATES 3987 opportunity to contribute to the Finance Bill. I want to approach this Bill from two angles. One, I want to cite a few sections where the Minister has made very good recommendations. I will also cite about five sections where we would like to see some amendments. Let me start with the good sections. The imposition of 20 per cent Export Duty or Kshs10 per kilogramme on used lead and acid batteries is a good recommendation. It is definitely going to promote local usage. It is also going to provide enough raw materials for that sector. I commend the Minister for that. I also commend him for the various increases on spirits and malt beer. But I would like to discourage the recommended addition of Kshs6 per litre of mineral water. That is because I consider water as a basic requirement. In fact, mineral water satisfies a basic need. So, increasing the price of mineral water by Kshs6 is very dangerous. I commend the Minister for zero-rating pyrethrum extracts. That is a very troubled sector. It requires revamping. The same applies to zero-rating of locally assembled bodies for motor vehicles. That is carriages of more than 25 persons. That will, of course, save Kenya foreign exchange. Instead of importing second-hand vehicles from Dubai and elsewhere, that will encourage the local motor industry, especially the assembly subsector. That will also encourage a cleaner environment by reducing the usage of old matatus . May I also take this opportunity to commend the Minister for removing Passenger Service Vehicle (PSV) licence for passenger vehicles. Although we will lose about Kshs2.5 million per month, that is a price worth paying because, in fact, we were wasting a lot of time. There was a lot of bureaucracy. Having given those commendations, let me, straightaway, go to areas which I think require amendments. On the first one, I wish to concur with my colleagues who had talked earlier, about the ban on the manufacture of thin plastic bags. The imposition of 120 per cent Excise Duty on plastic bags of over 30 microns was meant to encourage a clean environment. But the disadvantages of that are multiple. One disadvantage is that it will unfavourably affect the manufacturing companies. That will lead to loss of jobs. It will also encourage inflation because of the increase in price of packaging materials. It will, in turn, affect basic commodities. The Minister should reconsider that. The disadvantages far outweigh the advantages. Mr. Temporary Deputy Speaker, Sir, Section 28 of this Bill empowers the Commissioner of Lands to sell land or buildings belonging to persons who fail to pay taxes. I would recommend that, that follows due court procedures because it is a very harsh thing. Somebody may be outside the country and he or she may be late in paying his or her taxes and the property is sold! There is a danger of misuse of power by the Commissioner. The consequences can be unfavourable. Mr. Temporary Deputy Speaker, Sir, I am also quite worried by Section 68 of this Bill. It is recommending raising of minimum core capital for banks and mortgage finance companies to Kshs1 billion by 2010. While that may stabilise the subsector, it has other disadvantages. One of them will be reducing the choices for Kenyans, because it will reduce the competition in that sector. When there is not enough competition, there are dangers of the big guys amalgamating or merging, thus causing the other problems of cartels. Mr. Temporary Deputy Speaker, Sir, may I now go to Section 73 of the Finance Bill. It is talking about the appointment of a Governor by the President, but on the recommendation of the Minister for Finance. The Departmental Committee on Finance, Planning and Trade recommended that this Section should be deleted. But I wish to take a middle ground. I will be introducing an amendment recommending the following:- \"That this Section be amended to enable the appointment of a non-executive Chairman, who shall be appointed by the Board of Directors of the bank constituted as provided in Section 11, for two years on rotational basis.\" 3988 PARLIAMENTARY DEBATES September 18, 2007 The dangers of a powerful Chairman in the Central Bank of Kenya (CBK) is to reduce the independence of the Governor. There will be possible interference. But when the Chairman is non- executive, he or she will not interfere with the monetary functions of the Governor. He or she can concentrate on the administrative and general financial issues of the bank without being a danger to the Governor, who is supposed to be independent and enjoys security of tenure. With those few remarks, I wish to recommend the Bill as proposed."
}