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"id": 233883,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/233883/?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": " Thank you, Mr. Deputy Speaker, Sir. First, I would like to thank my predecessors in the Ministry, hon. Nyachae and hon. Obwocha, the Assistant Minister, the Permanent Secretary, the Ministry staff and all the other stakeholders who have participated in developing this Bill. The policy on which this Bill is based is contained in the Sessional Paper No. 4 of 2004. It is quite clear that access to reliable and affordable energy is critical for the development of all economic and social sectors of this country. You will recall that for you to come here, you had to use either diesel or petrol, which are petroleum products. Even to use a microphone to maintain order in this House we have to use electricity. Energy is not only required for production of goods and services but also for essential tasks including cooking, lighting, heating et cetera . Energy also raises our quality of living through better facilities for education and health care. It is also a critical tool for income generation, poverty reduction and employment creation. Mr. Deputy Speaker, Sir, this Bill provides a legal framework for ensuring sound energy sector management, good governance and improved access to energy services by the poor, especially in the rural areas. The Bill seeks to consolidate all regulatory functions in the energy sector and our regulator, the Energy Regulatory Commission, which is established under Clause 4. The Energy Regulatory Commission will undertake the regulatory functions currently undertaken by the Electricity Regulatory Board under the Electric Power Act and the regulatory functions November 21, 2006 PARLIAMENTARY DEBATES 3791 undertaken by the Minister for Energy under the Petroleum Act, Cap.116. Mr. Deputy Speaker, Sir, the Commission has been given broad powers to issue, renew and revoke licenses and permits for all undertakings in the energy sector. The role of the Minister is limited to developing policy and making regulations on the recommendation of the Energy Commission. Unlike the Electric Power Act, 1997, in which we thought we had liberalised the energy sector, this Bill now fully liberalises the energy sector. It liberalises both the generation and distribution of electricity. Private individuals, companies and groups can now freely generate, distribute and sell electricity directly to consumers, provided that they have a licence from the Commission. Mr. Deputy Speaker, Sir, the passing of this Bill will greatly enhance the supply of electricity to rural areas, especially in areas where there is micro-hydro power potential. I think the most important clause in this Bill, other than that establishing the Energy Regulatory Commission, is Clause 66, which establishes the Rural Electrification Authority. Most of the people living in rural areas have no access to electricity. This is a major development challenge, which the NARC Government is addressing through this Bill. Mr. Deputy Speaker, Sir, Kenya's national electricity access rate is very low. It now stands at about 16 per cent of the total population. In rural areas, the access rate is only five per cent of the total population. The Rural Electrification Authority is being created to accelerate the pace of rural electrification in all our constituencies in Kenya, through both grid and off-grid electricity. Mr. Deputy Speaker, Sir, hon. Members have raised concerns about the prevailing high fuel prices in this country, especially the cartel-like operations of the major oil companies. There have also been calls, both in the House and the Press, for the re-introduction of price controls in this sector. I think this Government would be very reluctant to impose price controls in this day and age. However, if you look at Clause 5(3)(e) of the Bill on page 1238, you will see that, the Energy Commission will be empowered to monitor and ensure that principles of fair competition will be observed by these companies. So, the companies are not being left scot-free. We do not want rogue oil companies in this country. We hope they are going to be prudent and sensitive, so that we do not ruin the industry. Mr. Deputy Speaker, Sir, the Bill, for the first time, gives the proposed Commission powers to regulate new and renewable sources of energy. There are many areas of this country to which it is going to be very expensive to extend grid electricity. I think this is an important provision in this Bill, because it will enable us to cover areas, especially North Eastern Province, to which it would be very difficult to take grid electricity. We are talking about possibilities of use of solar power, wind power and micro-hydro power to supplement grid electricity in Kenya. Mr. Deputy Speaker, Sir, as you know, I have just resumed my work in the Ministry. I look forward to working very closely with hon. Members. We want to extend electricity to all the constituencies in Kenya without discrimination. As you know, energy being the agent of our socio- economic development, knows no politics. Energy does not know any tribe. Both the Opposition and the Government need energy in equal measures. Therefore, I would urge hon. Members on both sides of the House not to play politics with this Bill. Let us look at the interest of Kenyans. Let us all support and adopt this Bill because, sincerely speaking, it is of immense benefit to all the people of Kenya. Lastly, Mr. Deputy Speaker, Sir, because I have not spoken in this House for a long time, let me take this opportunity to inform my colleagues that I have now experienced some transformation. I am now born again."
}