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{
    "id": 474774,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/474774/?format=api",
    "text_counter": 677,
    "type": "speech",
    "speaker_name": "Hon. Muchai",
    "speaker_title": "",
    "speaker": {
        "id": 1623,
        "legal_name": "George Mukuru Muchai",
        "slug": "george-mukuru-muchai"
    },
    "content": "comprehensive in terms of addressing all issues relating to mining and processing of minerals in Kenya. Hon. Deputy Speaker, I want to cite a case in point where history tells us that precious stones used to float around in this country. You did not even need to open the ground to find them. They used to float around. Our great fathers used to tell us that when colonialists came to Kenya, they found precious stones floating around and they would offer gifts to anybody who would take trouble to collect them and present to them. Why was this the case? It is because the natives did not know the value of these stones. The colonialists knew their full value and they immensely benefited from our mineral resources. Hon. Deputy Speaker, there is need for us to appreciate the work done by this Committee, but it requires to do more to address issues that hinder locals from processing to a final product, the minerals that are discovered in this country. This Bill must deal with transfer of skills, so that we can get full value of our resources once discovered. I want to give a case of coffee. We grow coffee in this country, but we do not add value to it in terms of processing. The coffee is exported to China and elsewhere. It is then processed into instant coffee. Despite the fact that the raw material originated here, instant coffee is sold back to Kenyans at an exorbitant price. I want to cite the case of South Africa, where they have lots of mines. When precious stones are mined in South Africa, the companies that process the stones into final products are not based in South Africa. They are based in Europe. They are not owned by people in Europe; they are owned by people who are based in South Africa. For purposes of processing, they open companies in foreign countries. They then take back the same minerals, processed into final products, and sell them at exorbitant prices. That is why I am saying there is need for this Bill to address the issue of transfer of technology, so that the locals can benefit. Hon. Deputy Speaker, I want to address this Bill in terms of the newly discovered minerals. Clause 90 of this Bill states that the holder of a mining licence shall notify the Cabinet Secretary of the discovery of any mineral to which the licence does not relate within 30 days of the discovery. This is a very loose clause. If somebody had a licence to mine coal and then he discovers gold and, because of the benefits he stands to gain, chooses not to inform the Cabinet Secretary the location or cite where gold has been discovered, and the amount of gold that has been discovered; what will happen? Clauses 175 and 176 provide that the offences relating to unauthorised operations will be imprisonment for a term not exceeding two years or a fine not exceeding Kshs10 million or both. However, the offence relating to unauthorised possession of minerals will attract imprisonment for a term not exceeding six months or a fine equivalent to the value of the minerals but not less than Kshs500,000 or both. There is need to harmonise the proposed penalties, in terms of what is provided for under Clause 90 – discovery of new minerals – where one can deliberately avoid notifying the Cabinet Secretary of the discovery and make colossal amounts of money to make a penalty of Kshs10 million a joke. So, I would urge the Committee to ensure that Clause 90 of this Bill, as read together with Clauses 175 and 176, are harmonised to ensure that the Cabinet Secretary is promptly notified of any new discoveries, and seal all The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}