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"id": 246606,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/246606/?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",
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"content": "Mr. Speaker, Sir, I have also received complaints about the multiplicity of charges at the port and wish to assure all stakeholders that the charges by the Kenya Ports Authority, the Kenya Revenue Authority and the Kenya Bureau of Standards will be rationalised to reduce costs to importers. I am also aware that the business community has been adversely affected by delays in VAT refunds and this has added to their costs of doing business. To address this issue, the 2006/2007 Budget has provided for the elimination of any outstanding refunds and increased the monthly refund allocations by 46 per cent to Kshs900 million. This amount should cater for all legitimate refunds. We nevertheless intend to come up with a more permanent solution in the course of the financial year so that the problem is resolved once and for all. Priority in processing refunds will be given to input claims that are Electronic Tax Register (ETR) compliant. May I also take this opportunity to warn those with wayward attitudes that we are also taking action in this Budget to curb fake claims by introducing severe penalties for fraudulent claims. Mr. Speaker, Sir, the framework for sustaining our competitiveness requires that we reduce barriers to business investment and growth. As promised in last year's Budget, the Government has reviewed over 1,300 licences that directly affect trade and investments in Kenya. Hon. Members June 15, 2006 PARLIAMENTARY DEBATES 1407 will recall that at the beginning of the financial year, we proposed to eliminate 37 licences and promised to eliminate a further more in the near future. Accordingly, I propose to eliminate an additional 118 licences which are unnecessary, burdensome, and hence no longer serve a useful purpose. Seven other licences will be simplified and an additional 700 licences will be simplified in the course of the financial year through harmonisation and reduction of fees and charges. Mr. Speaker, Sir, with regard to local authorities, several licences, permits and other charges have been identified as requiring elimination, simplification and retention. In order to facilitate this process, the local authorities are required to re-submit by 30th September, 2006 to the Minister for Local Government for approval by 31st December, 2006, all their licences, fees, permits and other charges that they wish to retain. I must say at this point that whichever local authority will not have re-submitted the same by 30th September, 2006 for approval will be deemed to have been cancelled. We intend to put a hold to the mushrooming of licences and permits after the elimination process is completed. Mr. Speaker, Sir, accordingly, I shall create a Business Regulatory Reform Unit in the Ministry of Finance to liaise with the regulators to ensure that all future regulations with respect to licensing conform to international best practices. The unit will develop and implement a medium- term regulatory reform strategy, including monitoring the quality of new licences. To facilitate private sector players, the Government will establish an electronic consolidated regulatory registry for all valid business licences. With regard to these reforms, I will, in the coming months, be introducing in Parliament a Bill on Business Regulation Reform. Mr. Speaker, Sir, the streamlined business environment will reduce opportunities for rent seeking, lower the cost of doing business and encourage existing investments to expand. In addition, it will lead to initiation of new investment and new employment opportunities. These reforms are intended to transform Kenya into an ideal and competitive investment destination. Mr. Speaker, Sir, let me now turn to the sectoral and Government development priorities. I will start with the education sector. Let me turn to the specific sectoral frameworks for our development strategy. As you are aware, the Government has continued to improve the quality of universal access to free primary education, by among other things, improving financial management and accountability in schools, rationalising deployment of teachers, targeting bursary to the poor and orphaned, expanding and improving educational facilities countrywide and providing adequate teaching and learning materials in all schools. Government efforts in this area have resulted in significant achievement in the net enrolment rate; the transition rates from primary to secondary schools and increased enrolment in both public and private universities. However, some weaknesses in the sector remain including misappropriation of funds by some head teachers. Mr. Speaker, Sir, strict monitoring and evaluation of the funds will henceforth be implemented for all schools to ensure that all resources earmarked for various aspects in support of the Free Primary Education Policy are not misused. In cases where abuses are detected, the Government will take stern corrective actions, including dismissal and taking those involved to court. On post-primary reforms, the Government will continue to provide incentives for the private sector to invest in the expansion of educational facilities. Towards this end, I will shortly announce some tax measures. On the university education, efforts will be made to harmonise regular and parallel programmes, including the rationalisation of tuition fee."
}