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"content": "Government has other priorities. Therefore, KenGen must now find other alternative ways of raising funds to speed up its electricity generating programmes. KenGen, for example, has drilled approximately 180 wells in the Olkaria area alone. Some of these wells are ready to generate electricity to be connected to the national grid. The Committee, therefore, recommends that those wells which are ready should be put into use immediately so that they can sell electricity to the national grid and, by so doing, enable the company to generate more cash for itself; cash which, of course, will be welcome to assist in further expansion of its capacity. Mr. Speaker, Sir, the steam in the other wells should be recognized as an asset which can be used to secure additional financing from financial institutions and other areas or support organizations so that the company can continue to expand its capacity to meet the country’s energy requirements. KenGen presently operates as a parastatal with all Government controls and bureaucracies. In view of the urgent need to be self sufficient in energy, I strongly feel that the Treasury should free KenGen to allow the company to go into innovative ways of looking for other sources of money to finance its activities. I think this will be good for the country, and that company should, in fact, be allowed to seek other sources of financing because it has a very strong asset base. Mr. Speaker, Sir, we noticed that the company is engaged in very important corporate social responsibility (CSR) in the area where it operates, the Naivasha area. We noticed, for example, that they have assisted local communities to build schools and hospitals; it has even assisted the communities to relocate to better areas and, at the moment, it is involved in building housing units for members of the community which, in my view, is something we must welcome and congratulate the company for. Mr. Speaker, Sir, KenGen has also built a number of roads in the area, which has improved movement. The company uses these roads together with the community around. We also noticed that they have done a major road to bitumen standards – the Moi South Road – from Naivasha to Olkaria. Substantial resources were used to do that road; resources which could have been used to undertake its core functions. We have recommended in this report that the Government should consider refunding KenGen those funds so that they can be used to develop geothermal energy rather than going into the other area of building roads. Mr. Speaker, Sir, we also noticed that the company, together with its sister company, Geothermal Development Company (GDC), have issues and conflicts with the community over land. This is particularly apparent in the Olkaria area; but it is particularly apparent even in the Suswa area. We do not think that the resolution of these conflicts should be left to the company alone. We think that the national Government as well as the county government should assist these companies to acquire exploration sites in all these areas and in all other potential areas where it is likely to extend its programmes to. We are, therefore, urging the national Government to take particular interest in the activities of KenGen and GDC because they are involved in serious work which will help this country in the long run. They should be facilitated, they should be given more funding to expand their programmes because we think that, going forward, we need more electricity and energy; and we need to reduce the cost of power. This is the only way we can industrialize; this is the only way we can transform the social lives of our people, and we do seriously think that greater attention should be paid to these companies. Therefore, Mr. Speaker, Sir, I want to conclude my remarks by appealing to hon. Senators to note this report, to support it and to encourage the Government to take keener interest The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate"
}