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"content": "First, I would like to thank my colleague, the Chair of the Departmental Committee on Finance, Planning and Trade for his comments on the work done by both my Ministry and the Central Bank of Kenya with regard to maintaining a stable macro-economic framework as well as our efforts towards reducing interest rates and ensuring that inflation is kept checked. There are, however, a number of issues that he raised, and which I would like to respond to. He and Mr. Lessonet raised the issue of the Youth Enterprise Development Fund. Indeed, as we work through the modalities of putting this Fund in place, we will try and ensure that banks do not overcharge. But the principal reason of using banks was for us to leverage the monies that we are giving - Kshs3 billion - against commercial banks. The banks that we give the money to can have a multiplier effect of adding five to every shilling that we give them, thus making available approximately Kshs18 billion from the Kshs3.8 billion that we have set aside. The spirit is to increase the amounts available, especially to our urban and rural people who are either under-banked or un-banked. That is our target. We want our banks to start targeting that sector. With regard to De La Rue, this is a debate that we have had with the Committee and the Chairman for a long period of time. However, as much as there are supporting arguments, there are also arguments against. The supporting arguments are with regard to security. The argument was that the Sub-Committee of the Cabinet gave us approval to proceed with the purchase, provided that we got a fair value. In many other countries such as Canada, France and South Africa, their central banks own the currency printing establishments. So, we are not necessarily out of line with what actually happens in other countries. I do, however, take note of his comment that we must ensure that, the fact that we have equitable participation does not mean that we can allow such an entity to bring about exorbitant prices or overcharge Kenyans for the services or the product that they shall deliver. With regard to CFS, he raised the question of Kshs1.18 billion which was not clear to him. This was previously reported under miscellaneous but now, for the sake of transparency, it is now being reported under guaranteed debts. This is to take care of debts that have been incurred by organizations which are, today, unable to service their debts such as the Nairobi City Council, the Kenya Broadcasting Corporation, the Tana and Athi Rivers Development Authority (TARDA), amongst others. With regard to Telkom Kenya, I am sure that this House is aware that France Telkom had applied for that issue to be taken under arbitration, claiming that there were certain areas where the Government had not made full disclosure at the time of purchase. It was felt, after consultations, discussions and negotiations with them that there were some areas where they reported a number of issues which should have been the responsibility of the Government. An out of court arbitration settlement was reached and it was in that instance that we decided that, in order to put that company on sound footing, we make that contribution so that, that organization can stand on its own two feet. Madam Temporary Deputy Speaker, with regard to hon. M’Mithiaru’s query regarding continued addition of assets to key areas like water, agriculture, education, and physical infrastructure, you will note that towards that end--- I said in my Financial Statement that the contribution of the Kenyan Government towards those particular sectors has risen from 55.9 per cent in the year 2004/2005 to 66.4 per cent in the just concluded financial year. I think this is an indication of the Government’s commitment in that particular direction. With regard to hon. Ogindo’s query, I wrote to the Committee and informed them that I was unable to avail myself. I spoke to the Chair and so, it was not a"
}