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"id": 245059,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/245059/?format=api",
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"type": "speech",
"speaker_name": "Mr. Kenneth",
"speaker_title": "The Assistant Minister for Finance",
"speaker": {
"id": 167,
"legal_name": "Peter Kenneth",
"slug": "peter-kenneth"
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"content": " Mr. Chairman, Sir, Dr. Kibunguchy's car cannot consume more litres than it is designed for. I am assuming that the only petrol station in his constituency is the one at Kakamega town. So, he would have to refill his car before he gets there. Mr. Chairman, Sir, the point that I am trying to make is this: We want to deal with our infrastructure and, therefore, we have to raise money. In fact, I consider the removal of the road licence fees as incidents or side-issues. The real issue on Fuel Levy should be towards the construction of our roads. The way I am looking at it is that, if we have good roads, we will save much more than what we are talking about in the Fuel Levy. The challenge to everybody involved is on the construction and maintenance of our roads. Mr. Kipchumba asked: \"Could we be told what will happen to the Kshs3 billion?\" It is actually going to be collected by Kenya Roads Board (KRB). Their work will, basically, be to maintain roads and not construct new ones. That is why the Minister, in his wisdom, tripled the Development Budget of the Ministry of Roads and Public Works so that, they can construct roads while the KRB maintains them. Mr. Chairman, Sir, I want to appeal to hon. Members that we lack strong consumer organisations in this country. On that afternoon when the Fuel Levy was increased by Kshs3.20, some pump prices when up to Kshs6! It is upon us to educate our constituents to go those petrol stations that stick to what the Government has done. Those are the ones that stick to what has been increased. The other day, I was doing some arithmetics of a 14-seater matatu that commutes between Nairobi and Thika, a journey that consumes 10 litres of fuel per every trip. I assumed that the increase was Kshs32, because it take 10 litres from Nairobi to Thika. The vehicle is a 14-seater, but the price increase per passenger was Kshs10. So, what those matatus did was to increase by Kshs140, whereas the actual increase was Kshs32. That is happening all July 4, 2006 PARLIAMENTARY DEBATES 1795 over the country. I think the rationale of the Minister to peg third-party insurance to Kshs3 million was to help the transport industry. Insurance premiums were expected to come down. I think there must be a way to force the insurance industry to bring down the cost of insurance premiums. Mr. Chairman, Sir, with regard to Sugar Development Levy, I have heard hon. Members from sugar growing areas talk about it. It is an issue of perception. But the truth will always be the truth. The truth of the matter is that the money raised to Kenya Sugar Board (KSB) does not go to the farmers. The challenge here is: Duty should be paid for any imported sugar. If duty is paid on imported sugar, and it is our duty to ensure that, imported sugar will never be cheaper than sugar which is grown and produced locally. The situation we have now is that where we collect levies, half of those levies remain with the Authority. The other half is used to maintain or rehabilitate factories. The actual farmer does not get any benefits; not even the roads where that sugar-cane is transported. Anyway, the principle of that taxation measure is that the consumer should not be taxed. I come from a coffee-growing area. The people who buy Nescafe are not taxed. It is us, the farmers, who are taxed! I think we also need to rationalise. As Mr. Muturi has said, the period is up to 1st, January. I think by that time, the issue of perception will be cleared. It is very important to clear perception. But it is also very important that all farmers should have harmonised taxation regimes. It cannot be one for consumers and another for growers only. That will not work. We are talking about building one country. If tea farmers pay taxes not as consumers of tea, and coffee farmers also pay taxes not as consumers of coffee, then it is important that the perception held by our brothers from sugar-cane growing areas must be sorted out. Mr. Chairman, Sir, I want to speak about something that will enable us to comply with the measures that the Minister proposed. The Minister has proposed to have extra vehicles allocated to various Government offices withdrawn. I know that we have talked about it for a while. But we can only do it by action. The Treasury has started by showing the country how it should be done. We have given back the vehicles. In fact, the cost incurred has not been in purchasing the vehicles. It has been in maintaining them. Time and again, you have seen on television what Government drivers do with the vehicles when they have fuel. When those vehicles are taken to the garages, they incur a lot of money. It becomes very expensive to maintain them. Mr. Chairman, Sir, I want to make an appeal to everybody who is in the Government. That is also a tax measure. Let us return those vehicles. I am saying that because we have already started getting statements from certain corners. But everybody should return the vehicles. That is the only way we can save some money. We are talking about energy cost in terms of fuel. The idea of one person, one vehicle will save this Government a lot of money in terms of fuel cost. Tied to that, I heard Mr. Omingo talk about energy saving bulbs. The rationale behind it is very clear. Whether we are saving kerosene or electricity, we are saving energy! We import generators to generate electricity. I support those tax measures. I also want to appeal to hon. Members to allow the Minister to respond today. As you have rightfully said, we will discuss the actual measures much more in the Finance Bill. That is when we will go clause by clause. With those few remarks, I want to thank you for giving me the opportunity to support."
}