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{
    "id": 64213,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/64213/?format=api",
    "text_counter": 290,
    "type": "speech",
    "speaker_name": "Mr. Ogindo",
    "speaker_title": "",
    "speaker": {
        "id": 120,
        "legal_name": "Martin Otieno Ogindo",
        "slug": "martin-ogindo"
    },
    "content": "This country today has a debt of about Kshs1.4 trillion. That is about 50 per cent of the Gross Domestic Product (GDP). That imposes a debt of an equivalent of about Kshs26,000 on the head of every Kenyan today. This is a very big burden. I want to remind the House that it is charged with three cardinal responsibilities. There is representation, legislation and oversight. It is our responsibility to oversee how borrowing is done and how proceeds of the same are used. In moving this Motion, my attention was drawn to the Ken-Ren Chemical and Fertilizers Company Limited. This limited liability company was conceived sometime in 1974. It was then agreed that Kenya was to construct a chemical producing company. Very little is known about this, except the fact that we have a debt on the same today and we are repaying it. In moving this Motion, I am driven by the desire that the feasibility study that proved the viability of this project can be brought to bear. I was in attendance at a fertilizer conference recently. At the conference we were still grappling with the question as to whether Kenya is really ready to have a fertilizer producing company. I wanted to say that with due respect to my colleague, Mr. Wamalwa, who gave notice of a Motion that seeks to establish the same. At the conference, it was clear that the requisite raw materials for the manufacture of fertilizer are deficient in Kenya. We have scattered locations of phosphate which, as at today, do not show any viability, yet the Government of Kenya, in its wisdom, undertook a project that was meant to establish a fertilizer company. That fertilizer company was to be co-owned by the Government and an American company called Enren. In that arrangement, the few records that I have show that the Kenya Government owned 65 per cent and the American company owned 35 per cent. Madam Temporary Deputy Speaker, despite the fact that the Government of Kenya had a majority ownership, the management contract was awarded to the Enren Company. Unfortunately, after about three years of existence, or of registration, this company disappeared. Within those three years, the scanty records that are available show that this company had already gobbled about Kshs54 million from Treasury. This company is also understood to have contracted for loans to the tune of US$42 million. This company later disappeared. We are meant to understand that come 2002 when Kenya went for a meeting for rescheduling of its debts, there were people who were picketing at the hotels occupied by the Kenyan delegation, demanding their rights. It was after that, that these issues were brought to the fore. Madam Temporary Deputy Speaker, I am also made to understand that the Kenyan Government at some point contested this loan. Out of that litigation the Government was awarded benefits. However, this was not followed and that award was also lost. Subsequently, the two banks that were said to have lent Kenya money then sued Kenya. Kenya was very fast to accept liability and today we have this liability. It is important for this House to give this resolution so that as a country we really appreciate the history that brought us this debt. You are also aware that many of the debts we have incurred are as a result of the weak legal framework that we have. This is continuously being exploited to the detriment of the future generations. It is important that we understand these things. Secondly, it is a fact that any money borrowed that constitutes public debt is directly tied to the Consolidated Fund. You are aware that expenditures that are charged to the Consolidated Fund have very little scrutiny and as such, the Consolidated Fund provides a safe conduit for any expenditure. Madam Temporary Deputy Speaker, alongside the Ken-Ren Chemical Company there is the notorious external commercial debt on security related projects. I know a lot of work has been done on this but the work that has been done has generated more heat than light. It is on this account that I want to request the Minister to kind of bring a Report to the Budget Committee on the status of the external commercial debts. In doing so, we would expect the Minister to deal with the people who were engaged in the supply of these goods. I hope the Minister is also going to deal with the civil servants who were contracting on behalf of Kenya. Lastly, we also know that these things cannot take place without some political good will. Upon exposing these activities, we are going to save our country a lot of money because once these people know that their tricks have been discovered the Exchequer is going to be saved some money. With those few remarks, I beg to move and call on Mr. Mbadi to second."
}