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{
    "id": 861024,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/861024/?format=api",
    "text_counter": 363,
    "type": "speech",
    "speaker_name": "Sen. Moi",
    "speaker_title": "",
    "speaker": {
        "id": 305,
        "legal_name": "Gideon Kipsiele Towett Moi",
        "slug": "gideon-moi"
    },
    "content": "The local content in reality, policy and laws have transformed countries around the world. I would like to give three examples of the countries which have adopted the local content in their legislative agenda and made it into Bills. We will start with Nigeria. The first image that comes to mind when we think of Nigeria and oil resources is Niger Delta and the conflict that has dismembered communities there. However, there is a beautiful story told by local content development there. Before 2010, Nigeria like Kenya, did not have a local content policy at all. In spite of being the world’s eighth largest oil exporter, it did not have a Local Content Bill. They had been exploited left, right and centre. Oil in Nigeria account for upwards of 40 per cent of its Gross Domestic Product (GDP) and records at least USD1billion in investment annually. Before 2010, over 90 per cent of the investment imports were imported into Nigeria and there were no local Nigerian companies in the supply value chain. In 2010, Nigeria passed the Nigerian Local Content Bill, which required local forums to participate in the extractive industry value chain. Immediately the Bill was passed, there was massive impact. Before then, Chinese tanks flew Nigerian flags to meet the requirements of the new regulation but slowly, Nigerian local companies came in to the industry and we saw this for ourselves when we were introduced to the businessmen. Today, Nigerians have super oil tankers thanks to the Local Content Bill which compelled that they had to have a Nigerian content in their logistics. The Nigerian Local Content law has achieved phenomenal success. It has enhanced domestic participation and facilitated growth of a globally competitive domestic industry and auxiliary. We went to Brazil and saw what happened there. As it happened in Nigeria, their uptake was slow and initially, there was cosmetic compliance. However, progressively, international oil firms were required to invest in domestic capacity building and technology transfer. Brazilian firms slowly but surely began to produce and supply small items such as pipes. However, through the gradual attainment of experience, they moved to the more sophisticated products of oil well drilling beds. As at 2016, just 13 years following the adoption of the local content policy, Brazil is one of the world’s leading producers and suppliers of sophisticated oil well drilling beds that used to come from Texas, Saudi Arabia to South Korea, the Asian tigers which we are all familiar with. However, they too adopted the Local Content Bill and have championed the developments of their industries. Mr. Deputy Speaker, Sir, so, what does this Bill seek to do for Kenya? The Local Content Bill identifies a national interest. It does this by doing the following main things; (i) It requires a minimum percentage value of goods and services to be provided from Kenyan sources, that is local procurement. (ii) It also requires for the service sector in the oil and gas value chain to be dominated progressively by Kenyan players. (iii) It requires international companies to pursue policies that ensures employment of Kenyans in the oil and gas sector and requires for this purpose that these companies establish training institutions for skills and knowledge transfer. The electronic version of the Senate Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor, Senate."
}