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{
    "id": 7305,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/7305/?format=api",
    "text_counter": 466,
    "type": "speech",
    "speaker_name": "Mr. Mbadi",
    "speaker_title": "",
    "speaker": {
        "id": 110,
        "legal_name": "John Mbadi Ng'ong'o",
        "slug": "john-mbadi"
    },
    "content": "from 3.8 in 2010 as I mentioned earlier to a high of 12.95 in May 2011 and the fall in the value of the Kenya Shilling against the main foreign currencies. The Committee sought clarifications on the following specific issues:- (i) How the tax system could benefit Kenyans and how quickly the proposed Excise tax waiver on oil products such as paraffin and diesel could be effected. (ii) How the Government could deal with any possible existing cartels in the maize sector. (iii) How the CBK and KRA were dealing with the issues of climate change if any and, effects of depreciating Kenya shilling against the major world currencies. (iv) In depth information on why the inflation is on steady increase. (v) Tax measures that the KRA could propose to help manage the rising cost of living among other things. Mr. Temporary Deputy Speaker, Sir, the Governor of the Central Bank indicated that economic growth was showing a strong recovery partly due to good performance in agriculture and financial growth also remained strong. I really do not know whether the Governor at this point could still stand at this point and repeat the same. However, at that time, the Governor expressed optimism even when many of us expressed our fears that economic growth would be affected. The discussions identified the following cross-cutting measures that would help stabilize the micro-economic environment and other areas of concern to the Kenya economy:- (i)There should be oil reserves in the country to cushion against external shocks. I think this is a very direct proposal. (ii)There should be domestic supply buffers of essential commodities which should be separate from the strategic reserves. I think we dwelt a lot on oil because we realized that the high cost of living in this country is contributed to significantly by the high cost of oil. (iii) Incentives for food prices should be based on market prices and further that the Government should establish institutions that will buy surplus commodities from farmers. (iv) Monetary policy should not be used to fix prices as it has limitations on controlling inflation. The Commissioner-General of KRA informed the Committee that certain direct taxes have impact on inflation, for example, Excise Duty. However, there was a caution that at times as a country, we are over-excited in trying to reduce taxes on these commodities but they do not go into helping the problems of the poor but rather benefit the middle men and businessmen. Mr. Temporary Deputy Speaker, Sir, I would agree because we removed Excise Duty on paraffin but the price of paraffin has been on the increase since then. Therefore, this has not really served the intended purpose. Probably we are denying the Kenyan economy revenue to finance its activities, yet the effect is not realized by the public. I really do not want to go into the details of the meetings we held because I am sure hon. Members will find time to go through the Report. I want to go straight to the recommendations, with your permission. It should be noted that the 21 recommendations made in the preliminary report dated June 7th 2011 and is annexed to this Report"
}