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{
    "id": 369491,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/369491/?format=api",
    "text_counter": 265,
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    "speaker_name": "",
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    "speaker": null,
    "content": "If you go to our books, you will find that Kenya exports steel. We do not produce any steel, but we export steel today. Kenya and the current Parliament are saying that we must have the policy space. If we want to add value to coffee, then we will say that we are putting an export tax. If you want to export coffee you must pay 30 or 50 per cent tax, so that we discourage people from exporting and so that we add value here. EU is saying no because they want us to export raw materials to Europe, they process it and bring it back as Nestle or the Nescafe of the world. These are our products. They take the raw materials, process them and bring them back at a higher rate. Now, Kenya is saying no. Allow us to take measures that will help us to produce locally and export these finished products. EU is saying no. This Parliament is saying: let us look at it afresh and have this policy space that will enable us to move forward. One of the other contentious issues is that under the Lome framework that the Member talked about, we used to sell to the EU duty free and quota free, but from 2015, we will be required to pay tax. Our products will be taxed just like they tax products from America and China into Europe, yet our circumstances are very different. That is why we have said that, look, if we are going to sign these agreements, the EU must commit that they will up their development support to us and when they do so, they will not tie it down to things like human rights and democracy because we know how better to manage our democracy. We are saying that let the EU give us money to help us build that capacity. This capacity looks like this: Today, where a Kenyan producer spends Kshs100 in power in cost of production, a European spends 50 cents. This means that our cost of power is over 1000 per cent more than what a European will spend on power because their power is subsidized. For example, for a normal European cow producing milk, Europeans spend about US$1 a day. A Kenyan can barely live on US$1 per day. So, the European cow is richer than a Kenyan in the sense that Europe subsidizes production more than anything else. We will not allow that they subsidize their products and bring them here. If we do that, you can be sure that Brookside, KCC and all these industries that you see today will go. That is why we are saying that Parliament must now be involved in some of these things because it is us who ask questions. It is not a civil servant, but us. What was happening before was that a Permanent Secretary would leave this country, board a plane to Belgium and sign some agreement that we agree, without Parliament knowing. The position has changed and that is why the Member is saying that we should advise the Government on what to do or not to do before they sign these EPAs. This is very important for us as a country, because we are respected in Africa and countries are looking up to us to give direction. We are “more industrialized than them”. As a country, we must show direction. Countries like Togo and Benin are middles. These are very small countries that do not produce anything. In fact, they export most of their cocoa to France and Switzerland. It is very funny that if you go to any shop today, even in Togo and Benin, you will find very nice chocolate, very well done, but all this is made in Switzerland with raw materials from Benin and Togo. This is their mainstay."
}