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"id": 224864,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/224864/?format=api",
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"type": "speech",
"speaker_name": "Mr. Murungi",
"speaker_title": "The Minister for Energy",
"speaker": {
"id": 93,
"legal_name": "Kiraitu Murungi",
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"content": " Mr. Temporary Deputy Speaker, Sir, I am seeking an extra Kshs1.7 billion plus re-allocation of other funds which we had already been allocated. Mr. Temporary Deputy Speaker, Sir, the Kshs1.3 billion, as I was saying, will be used to cushion Kenyan customers against the tariff increase. There is an on-going study, funded by the World Bank, being carried out under the auspices of the Electricity Regulatory Board (ERB). This study is just about to be concluded. It was supposed to have been concluded last year, but because of some delays, it was not. It is not the intention of the Government to have any tariff raise until we have considered the recommendations of that study. Therefore, in the interim, we have asked the Treasury to make a provision and support the KPLC to the tune of Kshs1.3 billion, so that after we have done a thorough scrutiny of that study, then a decision will be made as to whether to increase these tariffs or not. So, this was an unforeseen expenditure and we would like it to be justifiable in these circumstances. It is not KenGen that is being supported by the Kshs1.3 billion. We are cushioning Kenyans against a possible tariff increase. Mr. Temporary Deputy Speaker, Sir, it is true that we expect to establish a geothermal development company later this year. The geothermal development company will not, in any way, devalue KenGen. As Kenyans know, exploration and production of geothermal energy in the country is just like oil or gas exploration. This is a very risky venture as you have seen from our exploration of oil or gas off-shore by Woodside last year, where the company spent Kshs5 billion, but it hit a dry well and instead of finding oil three miles under the sea, it struck fresh water. So, 858 PARLIAMENTARY DEBATES April 24, 2007 Kshs5 billion went down the drain. If KenGen was to be exposed to similar risky ventures in geothermal exploration, the shareholders of KenGen would envisage enormous financial risks. So, what we are trying to do by establishing this company is to insulate KenGen from these risky ventures of exploration and production of geothermal resources. Once we have explored and produced geothermal steams, KenGen then takes over for purposes of generation. The generation functions have not been taken over from KenGen. We have only taken over, through the new company, the exploration activities. So, there should be no fear whatsoever that the shareholders of KenGen will be exposed to risks as a result of the formation of the new geothermal company. Mr. Temporary Deputy Speaker, Sir, the other Kshs400 million we have sought is for support of our expanded Rural Electrification Programme (REP). Hon. Members will testify that we have the most ambitious REP going on in the country today. Since Independence until the year 2000, both the Kenyatta and the previous Governments spent Kshs6 billion on the REP, connecting an average of 20,000 customers per year. In the last three years, this Government has spent Kshs7 billion in expanding rural connectivity. Within the last nine months, we have connected 100,000 customers, which is more than five years' equivalent of what could have been connected in the past. This expanded programme has imposed a strain on the finances that have been allocated to the Ministry and we are, therefore, seeking an additional Kshs400 million. What was said about the posts is true. We are having problems accessing poles in Kenya alone. It is our policy to buy posts from Kenya first. If we do not get enough poles locally, we source them from the rest of the East African region. If we do not get enough from the rest of the East African region, we source them from the rest of Africa. As we speak, we are now importing poles from Chile, and others from Finland, because even Tanzania started getting worried about the rate at which her forests were getting depleted. Mr. Temporary Deputy Speaker, Sir, we have started a new project, which we are calling the \"Energy Sector Environment and Social Responsibility Programme\". This year, we are going to spend Kshs500 million on tree planting projects in this country, because we want our country to be self-sufficient in poles in about four years to come. So, we are encouraging farmers to see growing of trees as a business. We write to established commercial plantations, so that instead of importing poles from outside, we buy them from our local farmers. Already, we have raised Kshs250 million from the parastatals within the energy sector, and I will be seeking another 250 million from the main Budget in July, so that we can make Kshs500 million. I will also be supporting communities all over Kenya to plant trees in every constituency, because we have discovered that even where we extend electricity to, the people only use it for lighting purposes. They still continue cooking using firewood. We have discovered that no matter how much we ask our people not to cut trees, so long they need them for cooking, they will cut them down. So, we, as the energy sector, have decided to increase the supply of firewood in this country by encouraging communities to plant their own trees. So, some of this money will go to communities within hon. Members' constituencies, and we would like hon. Members to encourage them to plant trees, because they will need those trees for firewood. Mr. Temporary Deputy Speaker, Sir, we are also aware of the need to support our catchment areas, namely, the Mau Forest and the Mount Kenya region, from where the dams get water. Some of this money will, therefore, also be used to reafforest and protect our catchment areas. Mr. Temporary Deputy Speaker, Sir, regarding electricity costs, especially in rural areas, it costs an average of Kshs200,000 to connect a single customer, because of the distances that our people live in out there in the rural areas. However, that figure has been heavily subsidised by the Government, so that the cost has now dropped to about Kshs31,000. Even for the amount of April 24, 2007 PARLIAMENTARY DEBATES 859 Kshs31,000, we have decided that one does not have to pay the whole amount at once. One can just pay part of it and pay the balance later on, as one enjoys electricity. So, we are holding awareness meetings, where we are telling the people that they can just pay part of this amount. Since they are going to be in Kenya all their life, there is no reason for harassing them. Mr. Temporary Deputy Speaker, Sir, with those few remarks, I beg the House to support this Motion."
}