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"content": "organized crime last Wednesday, I said that I would talk about other problems later. We have since then taken a number of steps to address the matter. More interventions are in the offing whose impact you will soon be able to witness. PIRACY IN THE INDIAN OCEAN AND ITS IMPACT ON KENYA’S ECONOMY AND SECURITY Mr. Deputy Speaker, Sir, today, I want to address this House on the issue of piracy in the Indian Ocean which has gained worldwide interest since 2008. This may look like a far removed matter. Indeed, it began as a distant matter. However, it has become increasingly costly and it has come dangerously closer home. This year alone, there have been nine pirate incidences within Kenya’s exclusive economic zones, which is 200 kilometers of the Indian Ocean waters. The incidences have been as follows:- 1. MV Golden Wave, attacked 40 nautical miles off Kiunga on 17th October, 2010. 2. Spanish Warship, attacked 50 nautical miles off Kiunga. 3. MV Chulsang Bong attacked 30 nautical miles off Lamu on 13th March, 2010. 4. MV Izumi, attacked 45 nautical miles off Malindi on 10th October, 2010. 5. MV York, attacked 90 nautical miles off Mombasa. 6. MV Ayala, attacked 17 nautical miles off Mombasa on 29th October. 7. MV Bosco, attacked eight nautical miles off Msambweni on 29th October. 8. MV Tom Kansas, attacked 40 nautical miles east of Pemba Island on 5th November. 9. KNS Galana, attacked 21 nautical miles North East of Mombasa. Mr. Deputy Speaker, Sir, the recent pirate attacks just outside the Port of Mombasa will have serious effects and dramatic consequences if not addressed properly. There is rising likelihood of ever increasing costs as certain shipping companies will take their ships off the routes plying Mombasa. The piracy is causing longer sailing distances meaning that Kenyan products in some cases will have to be air shipped and thus increasing the costs and reducing the competitive edge in areas where the Kenyan economy has shown a significant growth potential. The global shipping industry has been hit hard. The cost of insurance is rising. In some instances, insurance increased from US$500 to US$20,000 per transit. The Kenya Shippers Council indicates that the region has been paying Kshs2 billion every month to cover the cost of piracy over the past one year. The International Monetary Fund (IMF) has warned that, that instability could slow down growth and leave many countries unable to meet their medium term targets. After the seizure of the vessel Cyrus Star in the year 2008, a leading Norwegian Shipping Group suspended transit through the area. Denis Shipper Maesk is considering routing its ships along the Cape of Good Hope in order to avoid piracy prone Somalia. Mr. Deputy Speaker, Sir, piracy is undermining our tourism and fishing industries. Cruise ships are seeking alternative routes. Fishing within Kenya’s territorial waters has become too risky. Piracy is contributing to the rising prices of fuel as ships take longer routes and that comes with high insurance premiums. Piracy is undermining our anti-money laundering efforts. We fear that some foreign actors could exploit the situation to dump toxic wastes especially along the Somalia coastline. Piracy is undermining the competitiveness of the Port of Mombasa. Our Government is spending a lot of resources on warding off pirates. The Ministry of State for Defence has been forced"
}