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{
    "id": 595322,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/595322/?format=api",
    "text_counter": 324,
    "type": "speech",
    "speaker_name": "Hon. Nyenze",
    "speaker_title": "",
    "speaker": {
        "id": 1987,
        "legal_name": "Francis Mwanzia Nyenze (Deceased)",
        "slug": "francis-mwanzia-nyenze"
    },
    "content": "Thank you Hon. Speaker, for giving me this chance to contribute to this very timely Bill. This is a crucial Bill because Kenya is discovering hydro-carbons. Kenya has struck oil and natural gas in Turkana County. I want to remind the House that the Petroleum Act that we are operating on is 30 years old. It was introduced on 16th November 1984 by Hon. Biwott and has served us for this long period. It is good that the Committee has come up with very good legislation on this sector. The Committee has sat and come up with very good suggestions on how to manage the natural resources that we are discovering, including the hydro-carbons, that is oil and gas, as well as coal in Kitui County, iron ore in Taita-Taveta County and other minerals. Kenya is one of the most endowed countries in the mineral field and should be used, as the Leader of the Majority Party has said, to reduce poverty amongst its people. There are a few places where I feel the committee fell short of. For instance, it has given the Cabinet Secretary (CS) too much power to negotiate contracts for petroleum. That is very wrong. It is good for the Committee to look at the possibility of having a board. A board is wider and it can consult more and come up with better ideas, instead of having so much power vested in one CS. To drill one hole could cost Kshs10 billion and because we have to fight corruption and we have to have good management, let us make sure that not so much power is vested in one individual. Clause 46 obligates the contractor to conserve the environment and promote local industries by buying from them and adopt best practices. We have seen in many places such as Nigeria - where the petroleum industry has not been properly regulated - oil spills. Land that was agriculturally productive has been made desolate because of careless extraction of oil. We do not want a repeat of that in Kenya. We want Clause 46 to be implemented so that those areas that can easily become wastelands and which are otherwise grasslands or farmlands can be restored. The local community should also participate so that it benefits. I also want to say that the distribution of resources has been covered in Part VII on the payment and revenue allocation. Out of the profits, the national Government will be getting 75 per cent, the local government 25 per cent and the local community 5 per cent. In most cases where oil, iron core and those minerals are found, most of those communities are very poor. This 5 per cent could be raised to 20 per cent on a reducing scale so that those communities are rescued from poverty to lead decent lives. The Sovereign Wealth Fund which is mentioned is a good idea. Countries like Norway have sovereign wealth funds which are never touched unless Parliament approves. That is the best way to go. We have seen countries like Nigeria - and I am citing Nigeria because it is an African country - that struck hydro-carbons and forget all the other economic activities they were undertaking. They concentrated on the extraction industry and by the time oil ran out, agriculture and tourism had died and everything went to the dogs. By the time they realized, it was too late. There has been renewed interest by international oil consumers to concentrate on East Africa and the Gulf of Guinea. In the Gulf and North Africa countries where oil used to be produced, there have been conflicts since the time of the Arab Spring and most of those countries’ resources are running out. We have now struck oil. Uganda has struck oil; Tanzania 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."
}