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{
    "id": 595341,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/595341/?format=api",
    "text_counter": 343,
    "type": "speech",
    "speaker_name": "Hon. Ganya",
    "speaker_title": "",
    "speaker": {
        "id": 18,
        "legal_name": "Francis Chachu Ganya",
        "slug": "francis-ganya"
    },
    "content": "discoveries in the near future. It is imperative for us as a county to have a sound legal and policy framework in place to enable us utilize this resource. Article 69 of our Constitution provides for sustainable utilization of natural resources in respect of their sustainable exploitation, management, conservation as well as equitable sharing of their benefits, both with local communities as well as future generations. I have looked at this Bill and I like Part VI. This is with regard to the local content. The Bill deliberately ensures that petroleum firms which are largely foreign companies add real value to the Kenyan economy when they come for exploration as well as during the exploitation phase. Doing that is ensuring systematic development of our national capabilities, capacities as well as real investment in this sector, by ensuring that Kenyans are trained at all phases of exploitation, exploration to the time of the actual production of oil resources in our country. Clause 6 of the Bill is also very clear about the imperative to ensure that procurement is done within local communities using the available local workforce, services and supplies. In this regard, it will support the local economy and the economies of the communities in which they operate as well as ensuring that these benefits accrue to support future generations. The clause also provides for establishment of a sovereign wealth fund. Most countries which have done very well have oil reserves in large quantities such as the Nordic countries. They have established a very good sovereign wealth fund, which does not only support infrastructural development in those countries at the moment but also a lot of reserves. In France, resources are put aside to support the development and growth of future generations. As we utilize resources that we have today, it is very critical for us to know that we have borrowed this space and resources from future generations. It is in this light that resources should be put aside through establishment of a sovereign wealth fund to ensure that future generations will continue to benefit from resources that were exploited by their forefathers. This is a very good practice in many countries. I really hope that when we start this sovereign fund, we will look at examples, especially of the Norwegians, which, I think, is one of the best so far articulated whenever we go to most conferences dealing with sovereign funds. Hon. Deputy Speaker, this Bill is very important because it provides for development and support towards future generations. In addition, if we endorse the Fund and it is well saved it can be used in future to develop infrastructure in Kenya when these resources are gone. We will still have the revenues or the wealth we would have created by exploiting this resource. The Bill is also biased towards ensuring that well endowed and resourced companies are the ones given licences to explore for, or exploit oil and gas reserves. The first month when I was elected many years ago, I remember there was a company that was exploring oil in my constituency. Within the last seven years, that company has changed names more than seven times. It kept on being bought by bigger companies until it lost meaning in terms of who was being dealt with. This was because more and more interest came into being when more prospects were realized, and they were bought by bigger companies. So, instead of starting with small companies which prospect and start selling their rights and licences to other bigger companies as soon as there are good prospects, we should start with companies that are well endowed and can undertake the entire process. This will save us the agony of small companies selling their rights and bringing a lot of confusion to the people who will be dealing with them both at the local and the national levels. 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."
}