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{
    "id": 788960,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/788960/?format=api",
    "text_counter": 214,
    "type": "speech",
    "speaker_name": "Hon. Hulufo",
    "speaker_title": "",
    "speaker": {
        "id": 13348,
        "legal_name": "Hassan Oda Hulufo",
        "slug": "hassan-oda-hulufo-2"
    },
    "content": "is properly, we may have issues when it comes to sharing the revenue. Clause 84 clearly defines how the national share from petroleum income is going to be shared in terms of what goes to the national Government, county government and to the local community. Local community is defined as a sub-county, which is very fair. If you define it on the basis of those who live around the wells, it becomes a challenge because where I come from, the land is collectively owned. What is owned collectively by the communities are ecosystems which, at times, are larger than sub-counties. Therefore, unless the proposed Bill has defined the way local community has been defined, it would have created more problems. Another important aspect which the Bill has clearly defined and is going to help us to avoid conflict between national and the county government…. Of course, as a country there is devolution but we are a unitary State, and therefore the counties cannot claim natural resources like oil. The national Government is going to manage it in trust for the people of Kenya. That aspect is very important and is going to help us to address the fears and hopes of our people. When I look at the part which relates to the sharing of the revenue and I hope we shall raise this at the Committee of the whole House stage, what is proposed to be the share of county government and the rider that county government should not get more than 20 per cent from the national Government, will raise some issues but we will move some amendments on it. The same applies to the five per cent which is earmarked for the community. Another good aspect is creating a specific account for the petroleum fund which makes it easier for monitoring. If a county government feels that probably it has not received its specific share with a specific fund and a specific account, it becomes easy to monitor. In terms of reporting by the contractors, again the proposed Bill obligates them to report what they actually produce; the quantities they produce and the qualities of the same. Therefore, it is easier to monitor what has been extracted and cost it. This will make it easier when it comes to sharing of revenue. Another important part in this Bill is the aspect of creating an advisory committee. I think when we leave it to the discretion of the county executive responsible for petroleum, at times having an individual making decisions on behalf of Kenyans is not good enough. Therefore, in line with the tenets of good governance, having that advisory committee which advises the CS in terms of his decision, to issue, renew and revoke licences as and when it is necessary, is a good thing. Although a member of the committee has raised an issue with having the authority and the need to give that power to the ERC, my personal feeling is that, if we have one big authority with directorates, it may not probably do justice. Therefore, my feeling is that we should retain the upstream petroleum authority. Its composition should reflect what is required as per the provisions of the Constitution. We have some Government appointees like the PSs from some key ministries, but at the same time we have five additional slots to take care of interests of other stakeholders including KEPSA. For the first time, we are seeing a proposal, which I think is a good thing, where institutions of higher learning with expertise in petroleum-related issues are considered for appointment to the board. The other important thing is that once your land is taken over for purposes of oil exploration, the Bill has a clear provision on how the contractor will seek your authority on how that can be given and the timeframe within which as a land owner you can be compensated. That is very important because one of the areas of conflict in mineral and petroleum exploration is when it comes to compulsory acquisition of land from the land owners for the purposes of enabling the companies to do the exploration. It also provides that within four months from the time the land owner gives consent, the compensation agreed upon must be given. The electronic version of the Official Hansard Report is for information purposes only. Acertified version of this Report can be obtained from the Hansard Editor."
}