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{
    "id": 360243,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/360243/?format=api",
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    "content": "Hon. Temporary Deputy Speaker, Sir, therefore, these agro-based parastatals owe the Government of Kenya in excess of Kshs72 billion, Kshs40 billion of which is owed by five sugar companies; this represents about 16 per cent of the total debt owed by State corporations. That forms about 35 per cent of what we have currently allocated as the funds to go to the devolved governments as unconditional grants, Kshs220 billion. Therefore, it would be in order to ensure that for the agro-based parastatals, the debts they owe are written off, because their primary business is to serve farmers. These farmers get returns based on the balance sheet of every parastatal that they are servicing. It determines, for example, how much they are paid in relation to their produce, or the material that they supply to these parastatals. So they become poorer because they are not able to be paid well. They are subject to the shenanigans of their managements. The reason as to why these debts have arisen is primarily because of issues of poor management and corruption and, therefore, continuing to have the burden of these debts passed on to farmers is punishing farmers, who never contributed to the problems of the parastatals. It is also true that some of those debts, even when they are entered into with the Government of Kenya--- The legal process on how these parastatals incurred those debts remains murky. We know, as a country, we have come from a history where parastatals were given to cronies. They were given to the politically correct, who were not professional. This does not justify that these debts should be passed on to the farmers. In support of this Motion, I would like to observe the following: If you look at our Division of Revenue Bill, we have allocated Kshs17.3 billion to some expenditure that we are calling “harmless allocation” and the explanation that has been given to this House is that this will go to counties that have a large service delivery mandate. Therefore, I would urge this House, and the Executive, to ensure that over and above cancellation of the debts that amount to the figure that I have mentioned above--- We should ensure that when those parastatals are transferred in the spirit of devolution, they are also financed adequately to ensure that they are productive and beneficial to the residents of the various counties where they are situated. The establishment of regional authorities was meant to develop the regions where these authorities are based; examples are TARDA and Kerio Valley Development Authority. I think we have the requisite capacity through our county government system to ensure that their responsibilities are also transferred to the county governments. However, for this to be attained, we need legislation, first at this national level, to ensure that the transfers are guided by law. So, I would urge the Government to bring a Bill on how these agro-based parastatals are going to be devolved to the counties. Also, the various county assemblies should enact legislation so that we domicile in the counties these agro-based parastatals, and then we ensure that they are properly managed and do not fall prey to the same problems that have bedeviled parastatals at the national level."
}