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{
    "id": 885662,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/885662/?format=api",
    "text_counter": 134,
    "type": "other",
    "speaker_name": "",
    "speaker_title": "",
    "speaker": null,
    "content": "Hon. Members, the proposed commercial arrangement is to be governed by the Public Private Partnerships Act, No.15 of 2013. The Act provides for the procedure for entering into a public private partnership agreement. It contemplates an elaborate process, including preparation of the privately initiated investment proposal, consideration by the target public entity, submission of the initiative to the public private partnership unit established in the National Treasury and approval for the parties to enter into negotiations. The law also contemplates that the said unit shall submit a project report, a financial risk assessment report, and its recommendations to the Public Private Partnership Committee for consideration. Section 54(3) of the Act provides that the Cabinet Secretary for Finance and the Cabinet Secretary in the State Department responsible for the implementation of the project shall prepare a joint cabinet memorandum based on the recommendations of the Public Private Partnership Committee and submit the memorandum to the Cabinet for approval before any execution. Section 55 of the Act provides for the only instance in which parliamentary approval may be sought in respect of public private partnerships, and that is where the partnership is for the exploitation of natural resources under Article 71 of the Constitution. This approval would be made through a ratification process. Parliament, in its wisdom, during the legislative process leading up to the enactment of the Public Private Partnerships Act, No.15 of 2013, removed itself from the requirement of parliamentary approval of public private partnerships. Hon. Members, irrespective of the absence of the requirement of parliamentary approval in the Act, as your Speaker I ask myself: “Is it possible for the Kenya Airways Privately Initiated Investment Proposal to be complete without Parliament’s knowledge? In my view, the realistic implementation of the proposal, if and when approved by the Cabinet, would require various legislative interventions, including amendments to various statutes. Ultimately, there may be need to amend different statutes, including the Kenya Airports Authority Act (No.3 of 1991), the Labour Relations Act (No.14 of 2007), the Air Passenger Service Charge Act (Cap. 475) and possibly taxation-related laws amongst others. As you are all aware, an amendment to any of these statutes is a matter which squarely falls within the legislative mandate of Parliament. It is important to note that Article 95(2) of the Constitution provides that one of the roles of the National Assembly is to deliberate on and resolve issues of concern to the people. Whereas the Kenya Airports Authority is a state corporation fully owned by the Government of Kenya, the Kenya Airways is a company in which the Government of Kenya has a 48.9% stake in terms of shareholding. Kenya Airways is, therefore, a company in which the government has substantial shareholding both for strategic and national interest. Hon. Members, you will also agree with me that, Kenya Airways, being a listed company at the Nairobi Securities Exchange, cannot be devoid of public scrutiny in as far as its operations are concerned. Any major restructuring or re-organisation of the Kenya Airways will, therefore, attract deserved attention of the people of Kenya, particularly through their representatives."
}