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"content": "Thank you, Mr. Speaker, Sir. The Budget as we all know, represents the foremost Government policy document. In this regard, therefore, many of us expected that it will deal with some of the fundamental issues that are affecting the country or that are of concern to this country at the moment. We expected the speech to deal with issues with regard to, for example, the constitutional review process, the upcoming General Elections and concerns raised by hon. Members on this side about the free and fairness of the coming elections. We expected it to deal with corruption, insecurity and so-forth, and some of the key challenges that this nation is facing. It is sad to note that the speech was short on those issues which are of national importance today. However, Mr. Speaker, Sir, the Minister dwelt at length on the \"Vision 2030\" and stated quite clearly that, that vision will replace the Economic Recovery Strategy (ERS) that was developed in 2003. However, I would have appreciated if he dealt more with the achievements of the ERS for the more than four years it has been operational. For example, in that ERS, there were benchmarks that were set with regard to the efficiency and effectiveness of service delivery in the Public Service. Also, on the role of the Government with regard to the size of the Government, so that it can also be reduced so that it can be more efficient and on many other issues. For example, in agriculture, value addition was one of the main issues that were to be addressed in the ERS. So, I would have thought that he would have dealt a lot more with what has been achieved with the ERS and what has not; what is pending and what has been carried forward to the \"Vision 2030\". Mr. Speaker, Sir, the Minister said that the \"Vision 2030\" requires:- \"Radical transformation of our economic, social and political systems\". The Minister has not said how they intend to do that. For example, in my view, those are the same old words we have heard from 1960s, that every Government that comes here says. We are told that we are going to radically transform our political, economic and social systems, but at the end of the day, it is the same music; it is the same thing that is happening, not much change. I will give you an example. For example, on the economy, we are using the same 1960s economic model which emphasizes the high potential areas at the expense of other areas which need to be explored. On the political scene, we are witnessing a time when there is a reversal of political pluralism in this country to the extent that even in this House, you do not know who is in the Government and who is not. Mr. Speaker, Sir, on social aspects, one of the radical transformations was to introduce free primary education and allow over seven million students to be in schools. However, that transformation of our education system has affected the quality of education. So, when we say that, that vision is going to transform our political, social and economic systems, I do not see, from the speech of the Minister, how that will be achieved positively. It is interesting to note that in spite of our request on the Floor of this House, that \"Vision 2030\" has never been laid on the Table of this House. Hon. Members of this House have not had the opportunity to examine, critique, analyze or study it. So, when we hear in the media and from the Government that there is a \"Vision 2030\" that intends to do x,y,z, and those people who represent Kenyans in this august House have not had the opportunity to examine, study or input into that document, I think it is unfair. I think that it is important--- There was a pledge by the Leader of Government Business that, that Vision will be laid on the Table of this House for discussion. Mr. Speaker, Sir, the Budget paints a very rosy picture of the affairs of this country. The Budget Speech gives us a \"feel-good\" attitude when we listen to it that, indeed, we are doing very well. But that is far from the truth. When the Minister describes the economy; when he talks about June 19, 2007 PARLIAMENTARY DEBATES 1867 poverty, sectoral performances, macro-economic environment and international ratings of the Government, he paints a very rosy picture. However, in short and medium terms, there is very little improvement in the livelihoods of Kenyans. There is very little in that document to reduce the cost of living and address the wallowing poverty in which our Kenyan brothers and sisters are living in. Mr. Speaker, Sir, far from reducing the cost of living for ordinary Kenyans who are wallowing in poverty, the Minister gives in one hand and takes with the other. When he gives tuition waiver for students in secondary schools, he takes it away through the high cost of basic commodities because of the cost of packaging, additional Excise Duty on beverages and so on. When he removes licence fees for public service vehicles, he takes it away by introducing higher duty on spare parts. At the end of the day, in spite of the very good Budget Speech, Kenyans will continue suffering. Mr. Speaker, Sir, if you look at the Economic Survey of 2007 presented by this Government, you will find that the level of poverty is still very high. Inequality is on the rise and, indeed, the lives of Kenyans have not significantly changed. Let us look at one of the fundamentals that was a pledge by this Government when it presented the Economic Recovery Strategy (ERS). This Government said it would endeavour to keep inflation below 5 per cent. From the time the Government took over the running of this country to date, inflation has remained at double digits. Last year, the average inflation rate was 15 per cent. If you look at the Consumer Price Index (CPI), which is in the Economic Survey, it has gone up from 133 to 207. That means that the average prices of food, fuel, shelter, rent and so on have gone up by 56 per cent. All the items that fall under CPI have gone up by 56 per cent. In fact, food, which is the most important and accounts for 51 per cent of consumption by Kenyans, went up by 21 per cent last year. For the five years that this Government has been in power, the price of food has gone up by over 100 per cent. What we are saying is that this Government's expenditure pattern - and I will address that shortly - is actually fuelling inflation which is making the cost of food, fuel and shelter go up beyond imagination. That is a matter that we expected the Minister to deal with. How did he deal with inflation? He just glossed over it! Inflation is bound to increase in the next year. Mr. Speaker, Sir, let us look at the issue of forex, another macro-economic item. The Minister said that foreign exchange has stabilised. How could that have stabilised when the exchange rate to US$1 was Kshs77 to Kshs78 at the beginning of the year? At the end of the year, it was Kshs66. We know that tea, coffee and horticulture farmers are complaining about the effects of a stronger Shilling. It is becoming extremely difficult for our farmers to plan because of the instability of the exchange rate and yet, the Minister says quite comfortably that the exchange rate has stabilised. When did it stabilise? Mr. Speaker, Sir, on the issue of jobs, which is another important measure, the Economic Survey shows that 469,000 jobs were created last year. That is, indeed, a decline from what it was in 2005/2006. In the last five years, the jobs which have been created have always been between 460,000 to 490,000. Out of the 469,000 jobs, 418,000 were informal jobs. They have not counted how many people have got into informal jobs. They have just estimated. The only formal jobs that were created by this Government, with the 6.1 per cent economic growth, were 51,000. If you look at the Economic Survey, all the 51,000 jobs were created in one sector last year. That is telecommunications sector and mobile phones industry. So, when we come here and give a feel- good atmosphere and say that we are doing very well, we know that our people are not getting jobs. There is instability in the forex and the inflation is really killing people. Let me come to the most important item - poverty. Everything that we do in terms of the economy is aimed at reducing poverty. That is one of the key things that this Government attempted to do, when it set up the ERS. There is a bit of contradiction in the Budget Speech by the Minister and what is contained in the Economic Survey that was published last month. The 1868 PARLIAMENTARY DEBATES June 19, 2007 Economic Survey shows that Kenyans living below the poverty level in the rural areas are 49 per cent. I have the book here. When the Minister gave his Speech, he said that poverty in the rural areas has been reduced to 33.7 per cent. I think that was intended to create an atmosphere that, indeed, we are reducing poverty significantly. We are not and I will give you the reasons. Mr. Speaker, Sir, let us look at poverty itself! The highest level of poverty is at 95 per cent in Turkana District. In other words, 95 per cent of people living in Turkana District live below the poverty line. That is in the Economic Survey. Poverty is lowest in Kajiado District at 11 per cent. If any hon. Member watched the news last night, people in Turkana District, right here in Kenya, were boiling wild berries. They put the berries on fire at 7.00 a.m., boil them up to 5.00 p.m. and they have nothing else to eat except that. Those people are living in this country!"
}