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"id": 246604,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/246604/?format=api",
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"type": "speech",
"speaker_name": "Mr. Kimunya",
"speaker_title": "The Minister for Finance",
"speaker": {
"id": 174,
"legal_name": "Amos Muhinga Kimunya",
"slug": "amos-kimunya"
},
"content": " Mr. Speaker, Sir, in order to use public resources more efficiently, we intend to accelerate the ongoing public expenditure and financial management reforms with a view to strengthening transparency and accountability. The intention is to seal loopholes in our expenditure management system that have been exploited by corrupt individuals. Following the enactment of the Public Procurement and Disposal Law, we shall establish shortly are independent procurement authority. We will also, in consultation with stakeholders, develop indicators for monitoring efficiency and transparency of procurement of the Central Government, including those related to security. The new procurement manual will also simplify procurement procedures. Mr. Speaker, Sir, in the financial sector, important reviews are under way to further strengthen the financial system. This includes a comprehensive review of the Banking Act; revisions to the Internal Loans Act to bring it to date with recent developments in the financial area; and developing of a comprehensive strategy for our development finance institutions aimed at addressing issues of mobilizing long-term financing for investment and access of credit by challenged sectors such as agriculture. It is the Government's duty to ensure that Kenyans are not discriminated against in the provision of financial services. However, it has come to my attention that our Muslim colleagues cannot participate in the conventional banking system without violating deeply held principles of their faith. I, therefore, welcome the recent interest shown by some of the banks to fill this vacuum. Mr. Speaker, Sir, in that spirit, and in order to deepen the financial system by bringing in those Kenyans who have been locked out, I will be proposing to amend the Banking Act to allow for a more differentiated and broader array of banking products and services. The resulting increased competition for funds in the financial sector will, no doubt, lower lending rates and, therefore, provide a further boost to our growth prospects. Other measures to strengthen the efficiency of the financial sector and expand access to financial services by the poor will include the strengthening of the supervisory capacity of various financial sector regulators, including setting up an independent insurance regulatory authority and introducing legal and regulatory framework for micro-finance institutions. Mr. Speaker, Sir, an acceleration of privatisation and restructuring of public enterprises is vital for efficient service delivery and strengthening of economic growth. In this regard, we intend to build on the recent highly successful partial divestiture of KENGEN, which has created unprecedented interest in the capital markets and provided an impetus for further divestitures. Specific actions slated for 2006/2007 Financial Year include the restructuring and subsequent privatisation of Telkom Kenya Limited, National Bank of Kenya; the sale of part of Government shares in Mumias Sugar Company and Kenya Reinsurance Company Limited, among others; the sale of a second fixed line licence for domestic telecom operations, additional licences for international telecom gateways and enhanced private sector participation in port operations, including the container port operations in Mombasa. Mr. Speaker, Sir, with respect to the framework for governance, while we have made progress in the fight against corruption, the challenge still remains. The Government is committed 1406 PARLIAMENTARY DEBATES June 15, 2006 to upscaling the fight against this vice and in particular, the capacity of institutions like the Office the Attorney-General, the Judiciary and the Kenya Anti-Corruption Commission, which are in the front line of the war against corruption, will be further strengthened through a number of measures, which include the following: The hiring of lawyers and special prosecutors from the private sector as well as from outside the country; reviewing the terms and working conditions of legal staff in the Attorney-General's Chambers; increasing the number of judges and anti-corruption courts, and implementing various governance and anti-corruption strategies. In this context, the National Anti-Corruption Plan, which has been developed through a process involving a wide cross-section of Kenyans, will be launched early next month. Based on this comprehensive plan, we are finalising our second annual anti-corruption plan that will have measurable indicators to facilitate monitoring of progress. Mr. Speaker, Sir, the Government will also accelerate the investigation of prosecution of cases arising from the Goldenberg Commission, the Ndung'u Land Commission and the Anglo Leasing scam. Linked to this, the subject of security loan contracts has been of major public interest during the last two years. The contracts have been audited and investigated, and the reports prepared by the Controller and Auditor-General as well as the Public Accounts Committee (PAC) have been tabled in this House. The security loan contracts are also under investigation by the Kenya Anti-Corruption Commission. As hon. Members are aware, the Controller and Auditor-General and the PAC reports have raised serious concerns of financial management weaknesses that require to be addressed. The Government has, in this context, given its commitment to addressing the issues. We are going to put in place a framework that will close the loopholes that have been exploited in the past to pilfer public funds. I wish to assure hon. Members that in the course of the next financial year, I will table a Debt Management Bill that will address the concerns that have been raised by the public and this House. Mr. Speaker, Sir, an efficient and competitive private sector is essential for job creation. Therefore, to facilitate trade and expand investment opportunities in our country, I am directing the Kenya Ports Authority, the Kenya Revenue Authority, the Kenya Bureau of Standards, the Kenya Police and other stakeholders at the ports to ensure that services at our ports are provided around the clock, 24 hours a day."
}