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{
    "id": 924823,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/924823/?format=api",
    "text_counter": 109,
    "type": "speech",
    "speaker_name": "Alego-Usonga, ODM",
    "speaker_title": "Hon. Samuel Atandi",
    "speaker": {
        "id": 13290,
        "legal_name": "Samuel Onunga Atandi",
        "slug": "samuel-onunga-atandi"
    },
    "content": " Thank you, Hon. Deputy Speaker, for giving me this opportunity to speak on this Motion. This is one of the most important Motions to ventilate on. Trade deficit is a very big problem in Kenya and among many African countries. For instance, in Kenya in 2018, our imports totalled Kshs1.7 trillion while our exports were about Kshs600 billion. This means that out of Kshs100 we spend on importing items, we earn only Kshs35. This is very serious and one of the ramifications for such a large trade deficit is that our economy cannot afford to create jobs for our youths. Secondly, in the area of foreign exchange management, the country experienced a bigger shock. If you remember, our Treasury had to go to the International Monetary Fund (IMF) to look for what we call the standby letter of credit, which is supposed to help the economy by protecting us from foreign exchange shocks. So, trade deficit is a very big problem. However, if you look at the numbers, you will find that three quarters of our imports come from Asia and China. I was thinking about why we import more from china. I realised that one of the reasons we import more from China is because China produces cheap goods. Also, the Chinese are very aggressive. You find them on the streets of Gikomba marketing and selling their products. I have been thinking about this thing and I have realised that probably we have a tactless approach to the way we manage the marketing of our local products. The blame must squarely go to the departments that are in charge such as the Ministry of Foreign Affairs and International Trade, which I think have not put in place proper mechanisms to engage Asia on how our goods can be taken to those countries. An example of a country in Africa that is engaging very well with Asia is South Africa. South Africa has been able to improve their trade deficit which three years ago was at the same level with Kenya. Ethiopia is also doing very well. So, we have to encourage our department of international trade to engage more with other foreign countries especially Asia. I feel that our products can find good market in Asia if we have a proper approach on marketing. One of the things that is hampering Kenya from producing cheap products that can be attractive in other markets is lack of energy. We know that energy is very expensive in Kenya and most of our factories locally are unable to produce competitive products because of the cost of energy. Our Government must focus on how we are going to produce cheap energy. Because energy is expensive, it, therefore, also means that our products are expensive and they are not able to compete seriously in those markets. However, to bring you back, there is so much that we can do. It must be in the thinking of our planners. In the Finance Bill which will be brought to this House shortly, if you look at the way the National Treasury experts are looking at where we are going to source our revenues, you will see that largely we are projecting to make more money from imports. So, the thinking within our Government planners is that importation is one of the core items that will help us grow our economy. Again, if we have planners with such thinking, then you clearly see that the trade deficit question will never be addressed satisfactorily. I think we need to start from the basics and insist that as we think about where the Government is going to raise revenues, we must be aware that if the Government tells us that they are going to raise revenues from imports, then, clearly, we are widening the trade deficit. 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."
}