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{
    "id": 36162,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/36162/?format=api",
    "text_counter": 285,
    "type": "speech",
    "speaker_name": "Mr. Onyonka",
    "speaker_title": "The Assistant Minister for Foreign Affairs",
    "speaker": {
        "id": 128,
        "legal_name": "Richard Momoima Onyonka",
        "slug": "richard-onyonka"
    },
    "content": "colleagues so that they understand what I am saying. As a student of economics, a subsidy only works when you are providing the subsidy for production. A subsidy only works when you produce items that will come into the market cheaply. However, a subsidy cannot work if you will provide it for consumption. The simple logic is that if you, today, decided, as my colleagues have said, that you will provide a subsidy of Kshs20 per liter of fuel, what would happen if the Kshs20 is taken because the fuel must be bought from the traders who are bringing in the fuel? Essentially, you will create what we call a negative taxation system where you would be rewarding the people who will keep on increasing the prices of fuel. Therefore, logically, anybody will tell you that subsidies, when it comes to production, have never succeeded anywhere in the world. That is why it is much easier for the Government, when production is taking place---"
}