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{
    "id": 224929,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/224929/?format=api",
    "text_counter": 303,
    "type": "speech",
    "speaker_name": "Mr. Kipchumba",
    "speaker_title": "",
    "speaker": {
        "id": 313,
        "legal_name": "Joseph Kipchumba Lagat",
        "slug": "joseph-lagat"
    },
    "content": "Thank you, Mr. Temporary Deputy Speaker, Sir, for that generous time. I want to support this very important Motion. Probably, I would like the Minister to explain the following. When an economy is doing very well, and I believe it is to the extent that we hope it will grow by more than 6 per cent, we expect revenue collection to go up. But when our projected revenue goes down by Kshs5.9 billion, it is quite interesting and difficult to understand. Probably, I want the Minister to explain to us whether there are other problems associated with revenue collection. If there are, probably we need an audit to find out why, indeed, we cannot surpass the target that has been set, when the economy is doing very well. Mr. Temporary Deputy Speaker, Sir, on many occasions, we have said that the issue of pension is very critical. If we continue paying pension in this country--- Currently, I believe we are paying a pension portfolio of about Kshs20 billion. In the next few years, we will probably be paying a pension portfolio to the tune of about Kshs100 billion. Our economy cannot sustain a pension portfolio of that magnitude. Therefore, I would like to request the Minister for Finance to urgently consider bringing to this House a Bill that will allow all workers in this country to contribute towards their pension schemes. If we cannot start a contributory pension scheme, we will reach a dead end in terms of managing and financing our pension. Therefore, if the Minister could consider - maybe, in the next financial year, to bring that Bill, this House will consider and pass it very quickly. An hon. Member has raised the issue of Kenya Electricity Generating Company Limited (KenGen). The explanation that has been given is not right. In the KenGen prospectus, we were told the prices at which it will sell its products and how much it was going to buy from Kenya Power and Lighting Company (KPLC). It is not right to tell us that, since the negotiations collapsed, the Government will subsidise the 60 cents. I want to believe that, in as much as we want to reduce the cost that is borne by the consumer, every sector will demand that its products be subsidized. Kerosene, for example, is one of the products that is most consumed by Kenyans, as opposed to electricity. How many Kenyans have electricity in their homes? Very many Kenyans use kerosene. Therefore, it would be prudent to subsidize any product that really affects--- A product like unga that many of us--- In fact, what is better to subsidize? Is it unga, sugar or electricity? We must be very honest that we are trying to help the consumers. We are, in the same breadth, assisting the shareholders of the KenGen. In the prospectus, we were told that KenGen will sell its products at a certain price and buy power from KPLC at a certain rate. So, it was dishonest for them to have produced such a prospectus. April 24, 2007 PARLIAMENTARY DEBATES 871 Mr. Temporary Deputy Speaker, Sir, the issue of interest rates is very critical to this country. We are now overlooking that we are paying Kshs4.6 billion in terms of interest. But, if we continue borrowing from the domestic market, and given that the revenue that we are collecting probably will continue to go down--- Last year, I said that Kenya Revenue Authority (KRA) has probably reached its peak in terms of revenue collection. If they cannot collect and surpass the target that they have been given, even the 1.5 per cent that they have been given now, it should be reduced. I raised that issue - that KRA was given a 1.5 per cent target for a very huge amount of money. In 2002, 1 per cent of Kshs300 billion was a low figure. If we now collect Kshs500 billion, 1 per cent of the same will be quite a lot of money. We must re-consider whether we should continue giving KRA that kind of target given the kind of money it is collecting. If they cannot spend all the money, what will happen? With those few remarks, I beg to support."
}