{"count":1608389,"next":"http://info.mzalendo.com/api/v0.1/hansard/entries/?format=json&page=153613","previous":"http://info.mzalendo.com/api/v0.1/hansard/entries/?format=json&page=153611","results":[{"id":1554312,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1554312/?format=json","text_counter":166,"type":"scene","speaker_name":"","speaker_title":"","speaker":null,"content":"Second Reading"},{"id":1554313,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1554313/?format=json","text_counter":167,"type":"other","speaker_name":"","speaker_title":"","speaker":null,"content":"THE EXCISE DUTY (AMENDMENT) BILL (National Assembly Bill No.7 of 2025) Leader of the Majority Party."},{"id":1554314,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1554314/?format=json","text_counter":168,"type":"speech","speaker_name":"Hon. Kimani Ichung’wah","speaker_title":"","speaker":{"id":1835,"legal_name":"Anthony Kimani Ichung'Wah","slug":"anthony-kimani-ichungwah"},"content":"(Kikuyu, UDA); Hon. Temporary Speaker, I beg to move that the Excise Duty (Amendment) Bill (National Assembly Bill No.7 of 2025) be now read a Second Time. Hon. Temporary Speaker, Members will note that this is a very brief Bill. It only contains about four clauses. The Bill seeks to correct the unintended purpose that came out of the Tax Laws (Amendment) Act of 2024, which has already been assented to as an Act of Parliament. The Act had imposed a 25 per cent duty on imported, fully assembled electric transformers classified under the following tariff codes: 8504.10.00, 8504.21.00, 8504.22.00, 8504.23.00, 8504.31.00, 8504.32.00 and 8504.34.00. The rationale for this fiscal measure was to afford protection to our domestic assemblers or manufacturers of transformers from undue competition from those importing fully assembled transformers into the country. Additionally, this was also intended to ensure that the Government of Kenya, specifically the Ministry of Energy, can assure Kenyans of the quality of locally assembled transformers, and that they will comply with the standards set by the Kenya Bureau of Standards and also international standards. Concurrently, it was also intended to foster job creation in the country and advancement of technology transfer, as we would now be able to assemble and manufacture these transformers locally, therefore creating local jobs. The intended imposition of this duty was to protect our local manufacturers and industry. During the detailed consideration of the Tax Laws (Amendment) Act of 2024, the House excluded tariff code 8504.90.00, which pertains to parts of electrical transformers and static converters, such as rectifiers and inductors, from excise duty. This deliberate exclusion The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."},{"id":1554315,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1554315/?format=json","text_counter":169,"type":"speech","speaker_name":"Hon. Kimani Ichung’wah","speaker_title":"","speaker":{"id":1835,"legal_name":"Anthony Kimani Ichung'Wah","slug":"anthony-kimani-ichungwah"},"content":"was undertaken with the express aim of facilitating the local assembly of transformers to reduce the overall cost of electricity supply to the people of Kenya. The implication of this decision is that imported parts of electrical transformers, which fall under this classification of tariff code 8504.90.00, are not subject to excise duty. This was a commendable measure under the Tax Laws. However, during the implementation of the Tax Laws (Amendment) Act of 2024, an issue has now emerged regarding the application of the new excise duty on transformers. As currently structured, the tax applies to all imported transformers, regardless of their assembly status upon arrival. This blanket application undermines the intended protection of local transformer assemblers. Therefore, local transformer assemblers have been left in a quagmire as the classification of this tariff applies a blanket application across all imported parts, regardless of their assembly status. For instance, the tank that carries oil in a transformer is a component that looks complete but is, in fact, just part of the whole transformer. When transformers are transported for assembly, in many instances, they are transported unassembled and then assembly takes place when fixing them. This has created a problem for people importing unassembled parts. In consultation with the National Treasury, we have proposed a small amendment to correct the unintended purpose of the Tax Laws (Amendment) Act of 2024. Hon. Temporary Speaker, importers of components intended for local assembly are the ones facing the unintended consequences of this law. These components are classified as complete transformers despite arriving in a disassembled state. I have given an example of a tank carrying oil, which appears as a complete transformer but is just a component. Under the World Customs Tariff Classifications and the East African Common External Tariff, there is no specific tariff for assembled and unassembled transformers. This absence of differentiation reflects the widely accepted practice that transformers are typically transported in disassembled parts due to their nature and logistical requirements. The current application of the Tax Laws (Amendment) Act of 2024, in conjunction with the existing interpretation rules, presents an unintended consequence that warrants urgent consideration. The excise duty on transformers will increase the cost of supplying electricity to Kenyans, thereby negatively impacting the Government's agenda on the Last Mile Electricity Connectivity. This unintended consequence would mean that the cost of transformers increases by at least 25 per cent of that excise duty imposed under the Tax Laws. This will mean that the Last Mile Connectivity programme, partially funded by the donor community, will become more expensive for the Government. Many Members have seen officials from the Ministry of Energy and even His Excellency the President commissioning projects across the country on Last Mile Connectivity to ensure we connect as many Kenyans as possible to electricity. This will eat up the small resources that have been appropriated towards the Last Mile Connectivity Project and even the funds that are coming from the donors. The Excise Duty (Amendment) Bill of 2025 seeks to address this problem by amending the First Schedule to remove the excise duty on imported, fully assembled electric transformers and parts under the following tariff codes: 8504.10.00, 8504.21.00, 8504.22.00, 8504.23.00, 8504.31.00, 8504.32.00 and 8504.34.00 at the rate of 25 per cent that was introduced last year, as mentioned. In conclusion, I urge Members to support this crucial amendment. It is intended to benefit the end consumer of electricity, which includes all Kenyans. If the Kenya Power, the Kenya Electricity Transmission Company ( KETRACO), and the Rural Electrification and Renewable Energy Corporation (REREC) are buying transformers expensively, that cost will be offloaded to consumers in the tariffs they pay for their electricity consumption. Therefore, it is only right that we support this Bill to achieve the intended goals: protect the local manufacturers or local assemblers of transformers, spur job creation as people manufacture and The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."},{"id":1554316,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1554316/?format=json","text_counter":170,"type":"speech","speaker_name":"Hon. Kimani Ichung’wah","speaker_title":"","speaker":{"id":1835,"legal_name":"Anthony Kimani Ichung'Wah","slug":"anthony-kimani-ichungwah"},"content":"assemble those transformers locally, and ensure technology transfer into the country. We should not just rely on importing fully assembled transformer components. This policy direction started with the Finance Bill last year. It was noted that many fully assembled or completed goods were being imported into the country, and there was a need for a policy shift to discourage that. We need to encourage people to manufacture or assemble such things locally here in Kenya to create jobs, make the products cheaper, and assure Kenyans that those products meet national and international standards. While we cannot control the manufacturing level in other countries, we can control the standards of goods manufactured within our country. We must assure Kenyans of the quality of transformers and other goods manufactured locally. However, we may not be able to give that very high assurance as to the standards and quality of such imported products. With those remarks, I beg to move and urge Members to support. I request the Chairman of the Departmental Committee on Finance and National Planning and the Member for Molo, Hon. Kimani Kuria, to second this Bill."},{"id":1554317,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1554317/?format=json","text_counter":171,"type":"speech","speaker_name":"Hon. David Ochieng’","speaker_title":"The Temporary Speaker","speaker":null,"content":" Hon. Kimani Kuria."},{"id":1554318,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1554318/?format=json","text_counter":172,"type":"speech","speaker_name":"Kikuyu, UDA","speaker_title":"Hon. Kimani Ichung’wah","speaker":null,"content":" Hon. Kuria Kimani. Where we come from…"},{"id":1554319,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1554319/?format=json","text_counter":173,"type":"speech","speaker_name":"Hon. David Ochieng’","speaker_title":"The Temporary Speaker","speaker":null,"content":" I would like to know whether you come from the same place as Hon. Kuria Kimani. Give the Leader of the Majority Party 30 seconds to tell me where he comes from. I thought it was Kikuyu."},{"id":1554320,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1554320/?format=json","text_counter":174,"type":"speech","speaker_name":"Kikuyu, UDA","speaker_title":"Hon. Kimani Ichung’wah","speaker":null,"content":" Hon. Temporary Speaker, I beg to move and request the Member for Molo to second. I was saying where we come from: Kuria Kimani refers to Kimani's son; Kimani Kuria refers to Kuria's son."},{"id":1554321,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1554321/?format=json","text_counter":175,"type":"speech","speaker_name":"Hon. David Ochieng’","speaker_title":"The Temporary Speaker","speaker":null,"content":" So, whose son is the Chairman of the Departmental Committee on Finance and National Planning?"}]}