Mr. Speaker, Sir, on 30th March, 2010, I brought here a petition on behalf of Kiborowa squatters and you directed that the matter be referred to the Departmental Committee on Land and Natural Resources, and that the Committee reports its findings to this House within 21 days. But because there was a Recess, it lapsed and so I would like that you issue fresh directions.

Order, hon. Members! According to the Standing Orders, the Committee is obligated to make its report within 21 days as I directed from the date that has been alluded to by Dr. Khalwale. Given that there was a Recess, computation of time will have stopped during the period of the Recess, but the directions of Mr. Speaker will not have been spent. So I will want to hear from the Chairman of the Committee on what progress they have made, bearing in mind computation of time because time will have run while Parliament was in Session, but stopped when we were on Recess and continued as soon as we reconvened. Is the Chairman of the Departmental Committee on Land and Natural Resources here? Is there any hon. Member of that Committee who can speak on behalf of the Committee? You all take responsibility as hon. Members of the Committee!

Hon. Members, is there no Member of the Departmental Committee on Land and Natural Resources? In that case, can I have a report from the Committee by Tuesday, next week? I want a report, at least, an indication on how far you have progressed.

Mr. Speaker, Sir, I beg to ask the Deputy Prime Minister and Minister for Local Government the following Question by Private Notice. (a) Could the Minister confirm the existence of land parcels Nos. Limuru/Mbari-ya- Igi 41 and 42 and state the use for which they were set aside? (b) Is the Minister aware that Kiambu County Council is now sub-dividing the parcels for allocation to private users and, if so, could he provide names of beneficiaries of the sub-division? (c) Could the Minister halt the exercise, considering that the allocation is not in line with the Government policy on public land?

(Mr. Nguyai)

Mr. Speaker, Sir, I thank the Assistant Minister for taking that very good action. Just to remind him that the Kiambu County Council is notorious for doing that; last year in this House there was another revocation of something they purported to allocate. Given that, that is public land, I want to know under what consideration the council is now allocating part of that parcel of land to private individuals and whether that is supported by the Ministry in any policy.

I want to make it very clear that our Ministry does not support the allocation of public land to private individuals unless it is through a very serious needs basis, and the allocation has to be approved by the Ministry. It is for that reason we have ensured that this exercise has been halted and we will act on any other illegal allocation.

Mr. Speaker, Sir, it is a very common practice now among the local authorities to purport to allocate public land not only to individuals but also to individual councilors. It has been happening in my own county council where the headquarters of Meru Central District is located, and where we are trying to find land to put up the district headquarters. Now that the Assistant Minister has confirmed that they do not condone this practice, could he issue a circular, or gazette notice, to all councils in the country, and particularly chief officers, informing them that it is illegal for county councils to allocate public land for any purpose, other than for public utility under the guidance of the Commissioner of Lands?

Yes, I undertake to ensure that a circular is issued to all councils indicating that it is illegal to allocate public land. I would like any hon. Member who has been aggrieved and has a case in which we need to ensure that it is halted to proceed to provide us with information so that we can act accordingly.

Mr. Speaker, Sir, the Minister said that one of the uses of those parcels of land was for a cemetery. Now that cemetery land seems to provoke Pavlovian responses among hon. Members and the Ministry of Local Government, could the Assistant Minister assure this House that he will ensure that all land that has been set aside for cemeteries in all local authorities in this country is protected?

Mr. Speaker, Sir, as stated earlier, we will issue a circular not only for cemetery land but also for any land that belongs to the council that is meant to be for public use. I would like to assure the Member for Kimilili that we will make sure that there is land also for cemeteries.

Mr. Speaker, Sir, I just want a confirmation from the Assistant Minister that the land that was set aside for a cemetery shall remain as such, and that if there is any piece of land, especially in the drier pyrethrum-growing parts, to be issued to any entity, then that entity will be a public.

Mr. Speaker, Sir, since we have already halted the exercise. I would like to ascertain that this land has been reserved for specific purposes. If it is required for any purposes other than the specific one, it shall be in the public interest and it shall go through the appropriate procedures.

On a point of order, Mr. Speaker, Sir. Is the Assistant Minister in order to avoid the question? I just asked that he confirms that this land shall not find its way into the hands of private users. Those are individuals.

Mr. Speaker, Sir, I confirm that this land will be held for public interest and not private interest.

Mr. Speaker, Sir, I beg to ask the Minister of State for Provincial Administration and Internal Security the following Question by Private Notice. Under what circumstances are the police withdrawing the case of conspiracy to defraud (Re.CR/121/283/2010, CF542/2010) in respect of Mega Initiative Welfare Society?

Mr. Speaker, Sir, I am not ready with the answer. Since Mr. Ojode was supposed to answer this Question and he is out of the country, could I seek your indulgence to defer this Question to Tuesday, next week?

Mr. C. Kilonzo, did you have any notice of the Assistant Minster being away?

No, Mr. Speaker, Sir. Is it that now we will have to be waiting for Ministers to come back for Parliament to do its business?

Order, Member for Yatta. I have been informed that this trip by Mr. Ojode was not programmed. It was abrupt to seek some emergency measures to be taken from our external partners. So, I plead that you extend that indulgence.

On a point of order, Mr. Speaker, Sir. It is only yesterday when Mr. Kenyatta shocked us by telling us that he could not answer a Question because he was waiting for his Assistant Minister, Dr. Oburu, to come and answer it. Now, this time the substantive Minister, Prof. Saitoti, is in the country, but he does not want to answer the Question; he is saying we wait for his Assistant Minister. Are we going to run Parliament that way?

Mr. Speaker, Sir, many times we have pointed out that the constitutional principle is one of collective responsibility, so that when one Minister is not in, it does not even have to be the Assistant Minister from his Ministry who answers the Question. We know Mr. Ojode is a very good Assistant Minister. He answers his questions diligently, but is that an excuse for others not to be as diligent as he is? Can they not set an example where, when you are not there, your deputy answers? When your deputy is not there, there are many others who will sit in for you, so that Parliamentary business always continues? Why do we have to stop the business of Questions being answered simply because an Assistant Minister is away, when there is a whole lot of them here, who do not even have responsibilities?

Before I give directions on this, I would like to hear somebody from the Executive make a response. You have heard the concerns of Members of Parliament. The senior-most on the Front Bench is Mr. Franklin Bett.

Mr. Speaker, Sir, I have noted the comments and the seriousness with which hon. Members take the work of the House. I will get the matter reported at the next Cabinet meeting.

Hon. Members, as a matter of fact, I just wanted to extend some latitude to hon. Members to also express their concerns over this matter, because we have

Mr. Speaker, Sir, arising out of your ruling, you will recall that during last Parliament none other than the Prime Minister indicated to this House that he and the other principal, the President of the Republic of Kenya, had agreed and were going to sign a joint letter addressed to you appointing the Leader of Government Business, so that we know who to point fingers at. When shall we get the Leader of Government Business as promised by the Prime Minister?

Yes, that is a legitimate question coming from the Member for Central Imenti. This matter was similarly addressed at the House Business Committee yesterday.

We are expectant of some response from the Executive presently. I anticipate before the end of this Session, at least, I will have some indication. I will take it upon myself to report to the House what that indication will be.

Member for Imenti North!

Member for Imenti North! The sword of justice cuts both ways. Having reprimanded the Executive, we must drop this Question. So, it is dropped.

Order, Mr. Lesrima. Please, also learn to be accommodating just like your Ministry has been accommodated.

Member for Kisumu Town East!

asked the Minister for Information and communications:- (a) whether he is aware that the country is losing out on job opportunities because of lack of tax incentives and that a foreign film maker who wished to make a film on Mr. Kimani Maruge opted for South Africa, which offers 20 per cent tax incentives; (b) whether he could confirm that the Kenya Film Corporation has been lobbying for tax incentives for films made in Kenya; and, (c) if he could clarify whether tax incentives will be granted and, if so, state when.

Mr. Speaker, Sir, I beg to reply. (a) No, I am unaware that the country is losing out on job opportunities because of lack of tax incentives. The film on Mr. Kimani Maruge, which the hon. Member has alluded to being shot in South Africa titled “The First Grader” was wholly done in Kenya and specifically at the following locations:- Nairobi, Kajiado District, Tigoni, Limuru, Kiambu District, Ruiru, Thika District and Ngong area, specifically in Matasia. Blue Sky Films EPZ Ltd, a Kenyan Company was the local Film Agent that handled all logistics of the shoot on behalf of the Original Picture Ltd, London, the Company that produced the film under the license Number 99/2009/10 dated 15/10/2009 issued by the Ministry of Information and Communications.

The artists comprised of 106 Kenyans and eight South Africans. The first film was shot for 36 days from 9th November, 2009 to 19th December, 2009. It injected Kshs40 million into the country’s economy. So far, 100 foreigners films have been shot in the country since 1st July, 2009 to date. They have injected Kshs719,037,800 into the country’s economy. We continue to receive more film crews. (b) The Government has acknowledged the importance of the film and television industry and has initiated a number of important interventions aimed at developing the industry. These include setting up the Kenya Film Commission, which aims to promote local content development and market Kenya’s locations at international film markets. The Government has initiated the National Film Policy that is currently in draft form and receiving comments from the stakeholders. The film policy under development will address issues in relation to special fiscal and other incentives and mechanisms with my Ministry, and the Treasury is aligned to provide guidance as soon as the same is debated and passed. (c) Yes, I can confirm that tax incentives have been put in place to generate income and promote the film industry. First, the import duty of 25 per cent and VAT of 16 per cent on television cameras, digital cameras and video camera recorders have been removed. Secondly, VAT taxable goods and services offered to film producers have been zero-rated. Thirdly, 100 per cent investment reduction on capital expenditure incurred by a film producer on purchase of any filming equipment has been granted.

The draft National Film Policy also has a proposed incentive package designed to make Kenya the destination of choice for the international film industry.

Mr. Speaker, Sir, I want to thank the Assistant Minister for a very comprehensive answer. It appears that over time, this matter has been attended to. I am satisfied completely with the answer.

Order, hon. Members! Member for Voi.

asked the Minister for Education:- (a) whether he could confirm that a student, Georgina Sophie Nyasi, of Mwanyambo Primary School in Voi Constituency died after a teacher subjected her to corporal punishment; (b) whether the Ministry conducted any investigations into the death and, if so, what were the findings; and (c) what action the Minister has taken against the teacher, considering that corporal punishment has been outlawed in schools.

Mr. Speaker, Sir, I beg to reply. (a) I am aware that a pupil, Georgina Sohie Nyasi, and all the class Five G pupils of Mwanyambo Primary School in Voi Constituency were caned by a teacher, Mr. John Chege on 14th May, 2009. She later died of malaria at the Coast General Hospital on 25th May, 2009. (b) The Ministry conducted an internal investigations on 30th May, 2009 and the findings were as follows:- The Five G Class Teacher, Mr. John Chege, TSC No. 320243 of Manyambo Primary School canned all the students with elastic rubber for allegedly making noise on 14th May, 2009. Each pupil received one stroke of the cane on the buttock, including the deceased pupil. The pupils confirmed that the late Georgina Sophie Nyasi had earlier on that day complained to them of headache and spent most of the time placing her head on the desk in the classroom.

On the same day, at around 1.00 p.m., the late pupil left for home and did not return to the school at 2.00 p.m. She remained out of school from 15th to 19th May, 2009 when the Head teacher, Mr. Joram Mwazo was informed of her admission to Voi District Hospital. On 20th May, 2009, the Head teacher together with other teachers visited her at the hospital and found her put on a drip. Thereafter, between 21st and 24th May, 2009, the school did not receive any information about the girl’s medical condition and the parents did not visit the school.

The Head teacher was later informed that the girl had been transferred to Coast General Hospital on 24th May, 2009 and died on 25th May, 2009. (c) The teacher, Mr. John Chege has been interdicted and his name removed from the TSC register as stipulated in the TSC Code of conduct and Ethics, Section 10(1).

Mr. Speaker, Sir, from the answer given by the Assistant Minister, the girl died of Malaria. Therefore, there is a glaring contradiction between that answer and the post mortem report that I will lay on the Table. The post mortem report reveals that the girl died of cardiac arrest following the shock she received after being given a stroke of the cane on the buttocks. From this report, it seems as if the Ministry is trying to cover up this incident so that the teacher is not punished and charged for murder.

Mr. Speaker, Sir, the Ministry is not covering up the teacher. The Ministry has already removed the teacher from the TSC payroll. He has already been interdicted. If the post mortem reveals that the child died out of caning, then that is a police case. The man will be taken to court and charged with assault or murder. We have, however, removed him from the payroll pending what the police will do with the case.

Mr. Speaker, Sir, the Assistant Minister has said that the Report they have does not indicate that the child died out of caning. If that is the case, why did the Ministry take the drastic action of interdicting the teacher?

Mr. Speaker, Sir, corporal punishment in schools is illegal. There is an Act of Parliament which makes it an offence to cane children in school. It is a criminal offence to cane your child, even at home.

Mr. Speaker, Sir, with the admission by the Assistant Minister that caning took place in this primary school and with the understanding that there is an Act of Parliament that bans caning, what broad steps is the Ministry taking to ensure that the Act of Parliament is fully implemented in both primary and secondary schools?

Mr. Speaker, Sir, it is public knowledge in this country that caning is illegal in schools. Any teacher found doing it will be subjected to disciplinary action by the TSC. Any action beyond that belongs to the police.

Mr. Speaker, Sir, could the Assistant Minister clarify why it has taken almost a year to charge the teacher with a criminal offence since it is obvious from his statement that the girl was caned? Whether she was caned on the buttocks or the hands it is a criminal offence under the Act. It is abominable to take that long when life has been lost. That is from May up to now.

Mr. Speaker, Sir, the Ministry took action and by 5th January, 2010 the teacher had already been interdicted. However, when it comes to taking the gentleman to court it is a matter of the police and not the TSC.

On a point of order, Mr. Speaker, Sir. The post mortem report has been tabled and putting my head together with my medical colleague, we have perused it quickly. We have realised that the cause of death is purely not related to the caning. So, I do not know whether it is in order for us to continue in that manner, where we might be implicating the poor teacher as the cause of the death when the caning is not related to the

I think that is a genuine point of order. I also saw that and I thought the Assistant Minister himself would rise to the occasion, but he has not done that so far. With that prompting, Mr. Assistant Minister, do you have any response that can help you?

Mr. Speaker, Sir, I have said that the report we have indicates that the child did not die due to caning. There were other natural causes. I do not need to repeat that.

On a point of order, Mr. Speaker, Sir. Having heard the opinion of the two doctors and your own concerns, it is important to note that when any Kenyan citizen of whatever age dies under suspicious circumstances, the law under the criminal procedure code, and the Attorney-General is here and will confirm, states that an inquest should be opened by the District Magistrate Courts nearest to the scene. Could the Assistant Minister consider referring this matter to the Attorney-General for advice so that an inquest file can be opened immediately, to ensure that we can have full circumstances under judicial scrutiny? It is only after that, that we can establish the true circumstances and the cause of death.

Mr. Speaker, Sir, we will liaise with the relevant authorities and the Attorney-General’s office when we get the report officially in order to have an inquest file opened.

Order, Mr. Assistant Minister. Which report are you referring to?

The post mortem report, Mr. Speaker, Sir. We have not got it officially in our Ministry.

Order, Mr. Assistant Minister! There is no more official way of getting a report better than it being tabled in Parliament.

Confirm that you will take action appropriately.

Mr. Speaker, Sir, we shall use the report that has been tabled in this House to take further action.

Mr. Speaker, Sir, considering the fact that the student died after being canned and having been in hospital for ten days, it is possible that during the ten days she must have been attacked by malaria while in hospital. She could also have developed other complications. However, what triggered this sickness is the caning. This is because she was well in the morning. It is after receiving strokes of the cane that she did not return to school. Therefore, the teacher was responsible for accelerating any illness that she had.

Mr. Assistant Minister, you need not respond to that. The Member for Voi is advised to avail that information to the police. You are potentially a very good witness.

asked the Minister for Energy:- (a) why the proposed power supply from Brigidia through Tongaren to Lukhuna in Kimilili Constituency has not been undertaken, four years after it was planned; (b) what action the Ministry is taking to ensure that the project is carried out without further delay; and, (c) when the Naitiri/Mbakalo Project in Kimilili that has stalled for one-and-a-half years will be completed and what is causing the delay.

Mr. Speaker, Sir, I beg to reply. (a) The power supply from Brigidia through Tongaren to Lukhuna in Kimilili Constituency is being undertaken through the Spanish Phase II Rural Electrification Project. There was a delay in the approval process of the Spanish credit which also caused a delay in the supply of power to Lukhuna. However, work is currently in progress and power supply to Lukhuna is expected to be complete by October, 2010. (b) The Ministry will monitor the work progress to ensure implementation and connection of power supply by October, 2010. (c) The construction of the Naitiri/Mbakalo Project is in progress and it is expected to be complete by July, 2010. The delay has been due to the use of concrete poles which take a lot of time and care to erect, to avoid damage.

Thank you, Mr. Speaker, Sir. I wish to thank the Ministry which I have always respected for doing work on time except on this particular project which seems to have had a lot of delay. I would like to confirm to the House that since this Question appeared in the Order Paper before the House went on recess they quickly moved on site and work is ongoing. There is a misleading implication by the Assistant Minister that the delay was occasioned by the use of concrete poles which took time to erect to avoid breakage. The concrete poles were erected long before the project stalled. The reason for the delay was that there were no spare parts. However, they now seem to have found spare parts and work is going on. Does it require a Member of Parliament to raise a Question in this House in order for the Ministry to do its work?

Mr. Speaker, Sir, I thank the hon. Member for appreciating the answer I gave. To answer his question, it is true there was a delay in finalizing the Spanish funding. That is why the delay occurred on Part 1 of the project. Secondly, I take his point that there could be delay due to other reasons. I want to assure him that the project will be completed as planned.

Mr. Speaker, Sir, the Ministry has undertaken a number of electrification programmes in the country, but I think the problem has been lack of transformers in most of the projects. Could the Assistant Minister confirm if we now have enough transformers?

Mr. Speaker, Sir, the hon. Member is right. Quite a number of projects have been finalized, but have not been commissioned because of lack of transformers and conductors. But we have now placed an order and soon, they will be operationalized.

Last question by the Member for Kimilili!

Mr. Speaker, Sir, could the Assistant Minister explain to this House why it is that any project under the Kenya Power and Lighting Company (KPLC) is always delayed while that under the Rural Electrification Programme (REP) is way ahead, yet these two are under one Ministry? Is there a reason REP projects are moving faster than those of the KPLC?

Mr. Speaker, Sir, quite a number of projects which are undertaken by REA are funded by the Government of Kenya (GoK). These particular ones are funded by the donors; that is, the Spanish and other donors. Dealing with donors takes a bit of time. That is the reason they were slow.

Next Question by the Member for Kitui South!

asked the Minister for Roads:- (a) whether he is aware that all rural roads in Mutomo (namely, Mutomo- Kamutei road across Tiva River, Ikutha-Kanziko-Mutha-Voo Road, Mutomo-Mutha- Tana River Road, Ikutha-Wiiti-Muvuko-Kitoo Road, Athi Market-Katilini-Ilengi Road, Ikanga-Nduu Ndune-Kasivisuni Road, Mutomo-Kiviu-Kisayani-Mbitini Road, Mutomo- Uae-Kiangwa-Mbitini Road, and Mutomo-Kinakoni-Voo Road) are currently impassable because most drifts, bridges and culverts have been washed away; and, (b) whether he could urgently provide emergency funds to reconstruct these bridges, culverts and drifts and also undertake murraming on the damaged sections.

Mr. Speaker, Sir, I beg to reply. (a) I am aware that a number of rural roads in Mutomo have been damaged and, indeed, in many parts of the country, due to the recent and ongoing heavy rains. (b) My Ministry, through the Kenya Rural Roads Authority (KERRA), has issued Kshs16 million - and I want to assure hon. Members that the remaining Kshs3 million will be sent to their accounts in the course of next week - for roads maintenance. Constituencies Roads Committees, therefore, are requested to prioritize the repair of damaged roads to ensure the greatest benefit to the users. I am, of course, aware that these funds may not be adequate to cover the damage caused by floods or maintain those roads. I have, therefore, sought additional funding from the Office of the Deputy Prime Minister and Ministry of Finance to address the shortfalls in the next financial year 2010/2011 on emergency basis.

Mr. Speaker, Sir, I think my Question to the Minister was very clear. The money we have for the regular maintenance of Kshs19 million, as he has already suggested, is not sufficient, given the level of damage done to the roads in the districts. Could the Minister source some funds under an emergency arrangement so that we can put these drifts, culverts and bridges in place so that the roads can be passable in this district?

Mr. Speaker, Sir, I want to repeat that I have noticed that this money is not enough to cover the cost of damages on our roads. That is the reason I have placed a request to the Deputy Prime Minister and Minister for Finance to give me additional funds in the next financial year on emergency basis to handle such cases. In this

On a point of order, Mr. Speaker, Sir. I am aware that the Minister has presented his Budget before the House. Therefore, the Minister for Roads should be in a position to tell us whether the money is there for the next financial year. Could he confirm to this House whether there will be money available for the roads?

Order! That is not a point of order! It is clearly a question.

Mr. Speaker, Sir, most of the roads in this country actually become dilapidated because of lack of maintenance. The maintenance programme is normally on annual basis. Could the Minister liaise with the regional engineers so that they can provide for continuous or monthly inspection or maintenance of the roads? Once a road becomes bad or there is heavy rain and there is no immediate attention to it, then by the time it is repaired within one year, it would be impassable.

Mr. Speaker, Sir, I want to confirm to the hon. Member that those instructions were issued a while ago; that the regional managers do brief my office on a regular basis on the conditions of our roads and what is required to repair them so that we may be able to know. I also want to indicate to the House that the long awaited Roads Sector Investment Programme will be tabled before the House before the end of this month to give us a clear picture on the development and maintenance of our roads. It will be a clear beacon as to which roads we will be handling at every time of the year.

Mr. Speaker, Sir, you have heard the Minister say that they will be looking for funds from Treasury. Unless there is a disconnect, honestly, between the Office of the Deputy Prime Minister and Ministry of Finance, the Ministry of Roads and the Ministry of State for Planning, National Development and Vision 2030,when one knows his budget for the year and has made his priorities right, how he will be able to look for funds when, essentially, he has been granted funds for the whole year. Could the Minister be very specific because they had failed to spend the money that was allocated in the last financial year, and say whether he has given these roads a priority?

Mr. Speaker, Sir, I want to disabuse the hon. Member of any notion that money was returned to the Treasury in the last Budget. We are going to the next financial year with a huge debt. That does not mean that we had money that was handed back to the Treasury. I want to confirm that part of the money that is allocated to us will go to the attention of these roads which were damaged.

Last question, Mr. I. Muoki!

Mr. Speaker, Sir, now that the Budget has been read and money allocated, could I request the Minister that once we approve it, he considers these roads, in particular the road running from Mutomo through Mutha to connect with Tana River which is a very important link road?

Mr. Speaker, Sir, I confirm that it will be done. Hereafter, I will issue specific instructions for my officers to give me the situation on that road. I will take appropriate action to repair it.

That brings us to the end of Question Time. Yes, Rt. Hon. Prime Minister!

Mr. Speaker, Sir---

Order!

On a point of order, Mr. Speaker, Sir. According to our Standing Orders, we carry out business in this House based on our traditions and customs. We have, clearly, over the short period that this country has been under the Prime Minister set a tradition whereby we are alerted in advance either the questions we will raise to the Prime Minister or the Statement he will make. The Prime Minister is about to make a statement and we are expected, on behalf of the public, to make informed contributions by way of interrogation. Could the Prime Minister explain to the House why he did not include on the Order Paper the business he wants to give the House today?

Right hon. Prime Minister, do you want to make any response at all to that?

Mr. Speaker, Sir, the hon. Member for Ikolomani has raised a question to the Prime Minister which was supposed to be the basis of my statement this afternoon. However, yesterday, I was told that in the course of discussions yesterday, you ruled that that matter be answered by the Minister of State for Provincial Administration and Internal Security. It, therefore, became necessary for me to change what I was going to tell the House to something else. However, ordinarily, we have established a tradition of informing Members in advance what the Prime Minister will talk about in the House.

Would you, the Right hon. Prime Minister, want to uphold that practice? Can we go back to it in future?

Yes! Mr. Speaker, Sir, I want to confirm that that has been the practice and barring any kind of last minute changes, we will abide by that practice.

Fair enough. The hon. Member for Central Imenti, you are still not satisfied?

In that event, is it not proper that the Prime Minister indicates to us what he will be addressing to us and defers it to next Wednesday, given that it is only five minutes before we go to commencement of Business? Therefore, we will not have time to interrogate him, comment or seek clarification on the issues he wants to address the House on?

Order! The Prime Minister need not respond to that. My directions will be as follows. That, obviously, is a genuine concern. However, so that we utilize our time productively, we have eight minutes to go. Maybe it would be appropriate to let the Right hon. Prime Minister issue the Statement and we can then keep the clarifications in abeyance until next week. So, Right hon. Prime Minister, proceed but if you use three minutes, you may have to take some clarifications.

Thank you Mr. Speaker, Sir. I rise to make a brief statement on what Kenyans should expect when the East African Community Common Market Protocol comes into force on 1st July, 2010. Allow me to add a few words on the strategy for full implementation of the 2010/2011 Budget. Hon. Members may recall that when the Heads of State and Governments of the East African Community’s, five partner states appended their signatures to the Common Market Protocol, it ushered in two sets of actions. First, a full customs union became a reality on 1st January, 2010 where internal tariffs were fully eliminated. Secondly, the ratification process began in each of the partner states as required by the treaty that established the East African Community. In Kenya, this process included sensitization of the public about the opportunities that would be brought about by the common market as well as undertaking possible implementing challenges that would need to be addressed. All five partner states have deposited their respective instruments of ratification with the Secretary-General in Arusha, therefore, paving the way for the protocol coming into force at the scheduled date of 1st July, 2010. The process of implementation will thus begin. As we await to welcome the common market in July, Kenyans should expect the following: First, we will issue an implementation schedule that outlines specific provisions of the protocol and the timetable. Second, we will establish a legally binding set of regulations that translates the commitments contained in the annexes into actions. Third, we will submit a Miscellaneous Amendment Bill which, once approved, will enable our national laws to comply with the requirements, provisions and protocol. Fourth, we will continue to simplify administrative procedures related to the freedoms and rights as found in the protocol. Finally, we will strengthen our implementation capacities in order to ensure timely enforcement. The Government will also continue with the nationwide sensitization programme targeting all implementing agencies; the private sector, the media and the general public. In fact, this morning, I chaired the Prime Minister’s round table with the private sector and shared with them what the commencement of the East African Common Market Protocol will entail. We identified the challenges that lay ahead of us and I undertook to remove roadblocks, cumbersome border crossing and other hindrances to free trade within the Community. I stressed the opportunities that the Common Market will bring to uplift the living standards of all Kenyans, and urged the private sector to take full advantage of these opportunities. Mr. Speaker, Sir, I would like to take this opportunity to, sincerely, thank Kenyans for their great support to the East African Community Integration Agenda. I ask for patience and tolerance as we journey towards greater heights of integration and as we aspire to build a regionally and globally competitive Community. We must do so together with our brothers and sisters in the region. Their success is our success and the success of the East African Community is the success of all citizens of this region.

Order, hon. Members! Those of you who want to seek clarifications, please, keep your notes and we will revert to this matter on Wednesday next week, during the Prime Minister’s Time.

Mr. Temporary Deputy Chairman, Sir, I beg to move:- THAT, the proposals relating to Excise Duties, Value Added tax, Income Tax, Miscellaneous Fees and Taxes contained in the Financial Statement for the Fiscal Year 2010/2011 be approved.

Mr. Temporary Deputy Chairman, Sir, I stand here to support the Motion by the Deputy Prime Minister and Minister for Finance, and also congratulate him---

Mr. Musila, are you seconding the Motion?

Yes, Mr. Temporary Deputy Chairman, Sir. As I second the Motion, I would like to congratulate the Deputy Prime Minister and Minister for Finance for the taxation measures he has put in place. Mr. Temporary Deputy Chairman, Sir, if hon. Members were keen to listen, they must have noted that in every proposal that he made, the Deputy Prime Minister and Minister for Finance was reducing taxation for the purpose of ensuring that the economy grows, and that the people of this county can grow the economy to make Kenya a middle income country. I am sure that we will be able to achieve this objective. All of us are also encouraged by coming into force on 1st July, 2010 of the Common Market of the East African countries. There is no doubt that the Deputy Prime Minister and Minister for Finance, alongside his colleagues in the East African Community, have taken these measures jointly. There is no doubt that these are measures that are going to help our region, and Kenya in particular, in moving forward. Mr. Temporary Deputy Chairman, Sir, I have also noticed that the Deputy Prime Minister and Minister for Finance has done something that is rarely done by extending amnesty on Income Tax for Kenyans in the diaspora. This group of Kenyans has been responsible for providing the necessary foreign currency in this country even during the times we had faced difficulties. Therefore, the Deputy Prime Minister and Minister for Finance has done what is necessary to encourage this group of Kenyans to continue bringing more money to their motherland, so that we may grow. All the measures that the Deputy Prime Minister and Minister for Finance has taken are aimed at ensuring that the income tax bracket remains the same. For instance, VAT remains at 16 per cent. I particularly like his undertaking to introduce measures by next year, which are going to simplify payment of VAT. These are measures which are going to move the economy of this country forward. Mr. Temporary Deputy Chairman, Sir, one thing I would like him to ensure that he takes a very keen interest on is the interest that banks continue to charge on loans they give to Kenyans. Every time, we are told that the banking industry will regulate itself. At the end of every financial year of these institutions, they declare profits in billions of shillings. It is now a competition as to how many billions bank “A” makes as compared to the other, without taking into consideration the economy of this country.

Hon. Members, you will recall that in terms of the resolution that was adopted by this House through a Procedural Motion, each person wishing to contribute to this debate has 10 minutes to do so.

Mr. Temporary Deputy Chairman, Sir, I wish to contribute to this Motion. The 2009/2010 Budget was excellent in theory and in intension and we fully supported it. However, the processes and the implementation of the very noble ideas were lacking. As a result, the Budget was unable to perform the way we expected. Unfortunately, the 2010/2011 Budget follows the same pattern. In theory, it is good but nothing much has been done on the processes and the implementation strategy to put the theory into actual practice. I do not want to talk about the Kazi Kwa Vijana Programme and others which were meant to be stimulus packages and were supposed to have taken place in three months but have not taken place. The result is that the intended requirement did not happen. The intended benefit was not generated. It is true that it is not the mistake of the Ministry or the Minister. This is an indication of the systems that we are stuck and shuttled with, which hinder and put spanners into works, thus reducing the intended effect.

Mr. Temporary Deputy Chairman, Sir, is this a pro-poor Budget? No, it is not. Has it got the right growth strategy in mind? Is it congruent with the way we want to move forward? Yes, it is. However, the growth strategy is a short-term strategy trying to handle a long-term problem. It is very clear that you cannot have short-term quick fixes to handle long-term problems. That is what I think is happening here and the result is that we are not effective. I said that this is not a pro-poor Budget. Indirect taxes have not been touched but have been extended. Direct taxation has been reduced. I am surprised. How many wananchi have houses? To reduce the Stamp Duty from 2 per cent to 1 per cent will not help my constituents who do not have houses. To say that penalty on land rent be reduced or rather amnesty be given--- It is only the rich who have not paid land rent for many years and they have benefitted. What about the poor who do not even have a house on which they can pay land rent.

Mr. Temporary Deputy Chairman, Sir, the Deputy Prime Minister and Minister for Finance has not been able to come up and clear the difference between austerity measures and that of trying to spin the economy out of recession. We cannot go and start spending what we do not have. We do not have Kshs1 trillion but we intend to borrow

Thank you, Mr. Temporary Deputy Chairman, Sir for giving me this opportunity to also add my voice on this Motion which I support. I also want to congratulate the Deputy Prime Minister and Minister for Finance for the way he ably presented the Budget. On taxation, I would like to comment on three or four measures that the Deputy Prime Minister and Minister for Finance has taken which I would like to say are pro-poor and will bring down the cost of services to the common man. First, he lowered tax on imported wheat and rice. This will encourage diversification of food security in this country. We are an agriculturally-dependent economy. However, for a long time, we have been depending mostly on maize. Now that the Deputy Prime Minister and Minister for Finance has taken measures to bring down the cost of wheat and rice, it will open up the food bracket in this country. Even in difficult times, for example during persistent drought, the Government can now give us different relief food like wheat and rice since it will be produced in large quantities and, therefore, readily available to the citizens. Mr. Temporary Deputy Chairman, Sir, the other measure I would like to applaud the Deputy Prime Minister and Minister for Finance, the way he has handled it, is with regard to agriculture. As it has been said, agriculture contributes 23 per cent of our Gross Domestic Product (GDP). The Deputy Prime Minister and Minister for Finance has

Thank you, Mr. Temporary Deputy Chairman, Sir, for giving me this opportunity to contribute to this Motion. I want to congratulate the Minister for the able manner in which he presented this Budget and in particular, how he was able to balance various competing interests that the Ministry faces at this time. It is quite clear that it requires a bit of serious thinking into how this economy can grow and particularly so, what is on the table right now is the issue of the East African Common Market which Kenya, as a major player in terms of the contribution of this country, in terms of the share of this country in business within the region, this country must be able to take advantage of that. I have in mind in particular, the manufacturing sector which has been stagnating or going down for a period of time. I think this is the right time now the manufacturing sector in this country should take advantage of the East African Common Market. Since it is now all systems go, the Ministry must focus in liaison with the Ministry responsible for East African Community, the Ministry responsible for Trade and others, they should be able to organise themselves and the business community in this country, to take

Once again, Mr. Temporary Deputy Chairman, Sir, I take the opportunity to thank you for granting me this opportunity to make my small contribution to this Budget. Firstly, let me thank the Deputy Prime Minister and Minister for Finance for the fitting manner in which he presented the Budget in this House. Although there was some power interruption, the Minister continued to make the Speech and this was really very good to us. I should also extend my appreciation to the Permanent Secretary in the Ministry, and also the senior staff who really participated in the whole process, and

Thank you, Mr. Temporary Deputy Chairman, Sir, for this opportunity to make this contribution. I will, probably, deviate a bit from the previous contributors,

Thank you Mr. Temporary Deputy Chairman, Sir. I wish to support the Budget with some observations. We, as a country, are developing. We must be clear what sectors of our society we are addressing when we want this country to develop. The issue of the energy sector is very important if this country is to develop. Efforts were made to support the energy sector and consequently, I support them. However, more support and more resources should be put into this sector. Mr. Temporary Deputy Chairman, Sir, my other observation regards infrastructure. I must confess that I am an engineer. It is totally worrying that a country is expected to grow whereas its resources are managed and are in the hands of non-citizens. Over the last five years, the construction industry in this country is only 2 per cent managed by citizens of this country. I consider this not in line with what we want to achieve in order to develop. Countries like the United States of America (USA) and Malaysia developed because their people were involved in their development. When I say their people, I mean the majority of Kenyans. About 98 per cent of Kenyans in this country, we all know, happen to be Africans. In accordance with Sessional Paper No.10 which our forefathers underlined as the guideline for the development of this country, not until we involve the majority of our population, shall this country see real development. We are talking of the private sector being the engine for development. That is fine. But who is in charge of the private sector? If the private sector is managed by non- Kenyans, I regret to say we will be cheating ourselves to think that Kenya will develop. That is why we are going to end up with more and more people who cannot feed themselves. So, it is high time that policies were put in place to ensure the resources of this country, in accordance with the very first Sessional Paper No.10 which was signed by our late President in 1965 and authored by the late Tom Mboya and which even today remains very relevant. It is actually the line that all great countries like the USA, Malaysia, China and all other countries follow. Mr. Temporary Deputy Chairman, Sir, I am very disturbed when we have a Budget of Kshs180 billion which is not going to translate into the employment of the youth in this country. That is the reality. It does not make sense to me at all to have an infrastructural project that costs Kshs5 billion being built and even the manual labourers happen to be non-Kenyans. It does not translate into real effective source of development for this country. It could even be a conduit of wealth export into other countries. I think there is need for this Government to look seriously into formulation policies that ensure that what we are proclaiming to be development for Kenya is real development for Kenya. There is the issue of poverty eradication. We are not going to be able to eradicate poverty until the resources that this country has against the population of this country are involved in managing the resources of this country. I need not over-emphasize that agriculture will remain for a long time the backbone of our economy. We have been told about tourism, we can talk of industrialization by the year 2030, but Kenya with its

Mr. Temporary Deputy Chairman, Sir, I beg to support the tax proposals presented by the Deputy Prime Minister and Minister for Finance.

A nation that does not draw lessons from experience is a nation that does not improve its work. Though I was pleased that the Minister for Finance rolled over the Economic Stimulus Programmes (ESPs) that were started last year to stimulate our economy, I was disappointed that the Ministry of Finance did not share with the House

Mr. Temporary Deputy Chairman, Sir, allow me also to support the Motion that is brought before the House by the Deputy Prime Minister and Minister for Finance. Before I go into the specific proposals that he wants us to approve, I want to also say that it is true, as others have said before, that the Budget was prepared at a time that the economy is on the path to recovery. What we now need is, therefore, for the Government to embark on measures which would ensure sustainability and later accelerate economic growth in line with Vision 2030.

It is important to state that when analyzing this year’s Budget, one needs to look at the two sides; the expenditure and the revenue. I think today what he has put before us is for us to look into the various proposals that would affect the Government’s attempt to raise revenue and taxes.

Mr. Temporary Deputy Chairman, Sir, to be fair to the Minister, I think this year’s Budget is a more progressive one, compared to last year’s Budget. I say this because last year’s Budget was more of a political Budget as opposed to a Budget that was meant to spur serious economic growth. I would say that even the growth that we realized of 2.6 percent was by accident, because most of the measures that were put in place, especially the Economic Stimulus Package, and which were supposed to spur economic growth did not take off. So, we cannot attribute any growth that was realized to the Economic Stimulus Package. What we ended up seeing were acts of nature like good rains, the tourism sector doing well and a bit of activity in the transport industry. But there was no deliberate attempt to spur economic growth. This year, I am encouraged because the Minister has actually come to realize that for a country to achieve any meaningful economic growth, we need to emphasise on the private sector. The Minister’s attempt to improve the business environment is commendable. One hon. Member did ask: Which business environment are we trying to improve? When you invest more resources in the infrastructure of the country, you are improving all categories of business, including the small scale business, because, who

Thank you Mr. Temporary Chairman, Sir, for giving me the opportunity to contribute to this Motion. I would want to begin by thanking the Deputy Prime Minister and Minister for Finance for presenting a Budget that was thematically coherent and very elaborate. It set out to take the country forward in terms of the background of anticipated economic recovery, particularly following the decline that this country experienced as a result of post-election violence and also the drought that we experienced last year. The Minister noted quite well that the background of rains last year, which have continued to this time, provided an overall environment in which the country can make huge strides in terms of economic recovery and sustained growth. Nonetheless, I still feel that there are serious concerns when hon. Members say that the Budget, as presented, was over-ambitious. This stems primarily from some of the assumptions that were apparent on the Minister‘s presentation. For instance, while reviewing the global economic scenario, the Minister projected that the world economy was expected to pick up from a growth rate of 0.6 per cent registered in the last financial year to about 4.5 per cent. That is a very huge anticipation. He did not spell out measures to be taken, especially on the global scene to base that expectation on. But it is also clear from anybody who has been following what has been going on at the world economy level since the economic and financial meltdown took place in 2007/2008, starting from America. The world Government, especially of the developed economy experienced serious crisis when their banking system came down collapsing forcing those governments to embark on bailouts which meant that they had to take money from their own Treasuries to support those banks. That process has reached a pace where all these governments are experiencing serious debt problems. These problems are impacting negatively on countries such as Greece, Spain, Iceland and the rest. Right now, most governments are now embarking on austerity measures. They have abandoned stimulus programmes. These austerity programmes entail cutting on social spending on matters such as education, health and so on with a view to bridge the deficit. With that kind of background, it is not apparent, how they are going to sustain this growth from 0.6 to about 4.5. Based on that, we expect that there will be a lot of challenges on the world economy. The expectation that we will raise the borrowed amount of about Kshs80 billion from foreign sources may really not hold. We may also experience problems, if the world economy is also experiencing contraction in terms of other aspects of horticultural exports and tourism. These are all issues the Minister was referring to severally on the world scene. They have not really been factored in terms of the Budget. That is why the projected revenue growth looks ambitious and may not hold in the long run.

Related to that, I would also want to thank the Minister for the proposals he has made to enhance food security in this country, including expansion of food production

Mr. Temporary Deputy Chairman, Sir, I rise to support the Minister’s proposals on the tax regime.

First and foremost, I want to thank the Minister for his Budget presentation. I want to take off by looking at the assumption that he used to build his Budget. One of the assumptions is that there will be a growth rate of 5.1 per cent. This is coming against a background that in 2008, we had a growth rate of 1.6, which was followed by a growth rate of 2.6 per cent. As a patriotic Kenyan, I would want to see a growth rate of about ten per cent. But I know this can only be achieved progressively.

For him to project a growth rate of 5.1 per cent, I think is slightly ambitious. That means a lot of work will have to be done on our taxes. It is on that account that I want to support the proposed amendments on our taxes. There are proposals to streamline the VAT tax, which is a key source of our revenue. In the last financial year, we collected a total of Kshs146 billion. There is a projection of Kshs172 billion. For that reason, I want to support the reforms that have been brought in the VAT regime.

Mr. Temporary Deputy Chairman, Sir, I want to point out that the Appropriations- in-Aid (A-in-A) is significant source of revenue. But they are very liable to abuse. In one of my findings, I was able to speak with a District Accountant. I asked him: “How do you remit your Appropriations-in-Aid?” The answer was that they normally bank this in an account. I asked him: “Do you get a receipt in return?” He said: “No, we only get a banking slip.” It is imperative that every time money is given, there is a receipt issued. To that extent, I want to urge the Minister to streamline collection of A-In-A so that we can maximize on this area. My suggestion is, it is important that a separate account be opened where this can be collected and reconciliation done.

I want to commend him for coming up with an amnesty on the remittance by the people in the diaspora. I want to say that this is an opportunity for every Kenyan, including those who might have kept their money outside to take advantage and bring back their money for investment back home. We are continuing to create a conducive environment with better returns for your investments here than outside there. Of course, this notwithstanding how the money got there.

I also want to say as we pursue improvement of tax regimes, behind scenes I hear negotiations on the Economic Partnership Agreements (EPAs). I want the Minister to be vigilant on these areas so that we do not get into tax regimes that are going to undermine our economy. Going through the proposals of the EPAs one sees a situation whereby we are going to end up with a net capital flight and kill our economy.

Thank you, Mr. Temporary Deputy Chairman, Sir. I also rise to support this very important Motion. I also congratulate the Deputy Prime Minister and Minister for Finance for the Budget that is quite new in terms of value and vision. However, I have a few worries that I have to bring to the attention of the House and the Deputy Prime Minister and Minister for Finance. The first one is lack of marriage between the current Budget, the MDGs and the Vision 2030. I would have thought that we would be building towards meeting the MDGs in 2015 as much as we have failed in many of them and then have the link to Vision 2030. However, that did not quite come out in the Budget and that is a cause for worry whether we are diversifying or going out of track. We have heard of promises such as “Water to every Kenyan by the year 2000”

Thank you, Mr. Temporary Deputy Chairman, Sir, for the opportunity to contribute to this very important Budget process. I also want to thank the Deputy Prime Minister and Minister for Finance for the very able way he is managing the Ministry. Today, I think Kenyans look at him as one Minister who is doing his job. Mr. Temporary Deputy Chairman, Sir, I wish to also thank the Deputy Prime Minister and Minister for Finance for what he has done to marginalized areas, particularly arid areas in terms of livestock production, on the issue of abattoirs and even hides and skin processing plants. I think this way of trying to bring that economy into the mainstream economy will increase the Gross Domestic Product (GDP) of this country and provide livelihood to people who have hitherto not been part of the economy of Kenya. I would like the Deputy Prime Minister and Minister for Finance to know that marginalized areas are the future of Kenya. If he seriously continued to support this part of Kenya, we can actually increase our GDP and even future Government funding into the threshold of trillions and, therefore, provide Kenyans with a livelihood.

Thank you, Mr. Temporary Deputy Chairman, Sir. From the look of my boss, my party Chairman, he would wish that I speak for half a minute. However, I will speak for twelve so that he can get the points.

You have ten minutes.

Yes! I will speak for ten minutes. Mr. Temporary Deputy Chairman, Sir, looking at this Budget, it is exciting because it will help many people, particularly the farmers. However, there is one area, as I support the Budget that the Deputy Prime Minister and Minister for Finance needs to review. This is on wheat. By banning Import Duty on wheat, you are saying that the

Thank you, Mr. Temporary Deputy Speaker, Sir. I want to take this opportunity also to congratulate the Minister for Finance for the Budget he presented to this House for this financial year. It is the first time in this country that we are realizing that Kshs1 trillion can be spent in the Financial Year 2010-2011. This was unexpected and I also want to congratulate the Minister for coming up with ways and means of collecting taxes to make sure that the Budget is realized. Mr. Temporary Deputy Speaker, Sir, this money we are spending is truly reflective of Kenyans especially businessmen. We are talking of spending probably Kshs1.5 trillion. The reason I am saying that is because there was a big amount of money used to purchase land and up to today, there is that big problem of purchasing contaminated maize. I want to say that in the region where I come from, it is not the first time we have produced maize. We have been doing this before and we were able to store our maize for even one year without having any problem whatsoever. From the time this maize was harvested, it is hardly three months ago and we are being told that the maize is poisonous and contaminated. It is very clear that there was a consignment of maize that

Sorry Mr. Muthama! Order! In the event that some of you have forgotten why we are here, we are discussing taxation measures specifically Excise Duty, Value Added Tax (VAT), Income Tax and miscellaneous fees and taxes. The rules require that we be relevant. Please, kindly be advised.

Thank you, Mr. Temporary Deputy Speaker, Sir, the issue I was raising actually concerns the money being spent. I will dwell and stick on the issues of taxation. I want to say once again that the directives that have been given by the Minister, if they are going to be adhered to in terms of collecting taxes, the country will be able to spend enough money and probably improve the economy of the country. With these very few words, I beg to support.

Thank you, Mr. Temporary Deputy Speaker, Sir for giving me a chance to also support this Budget and also congratulate the Deputy Prime Minister and Minister for Finance, because I know it is not an easy job. Having said that, I have looked at this Budget and I have a few concerns. One of my concerns is that you cannot run a country when you are borrowing. We have borrowed heavily in this Budget and unless we have a Budget that is self-sustaining, we will go on mortgaging this country for a long time. Mr. Temporary Deputy Speaker, Sir, this Budget only favours the business community but for us from Central Province who sell milk on which taxes would have come, there was nothing for us. Just a few months ago, we were pouring milk and yet in this Budget, there was nothing to address this problem or that of potatoes and cabbages. If this Budget had addressed the issue of milk, then the Minister for Finance would have got a lot of taxes from the sales we would have made. Mr. Temporary Deputy Speaker, Sir, I think it is high time that we saw a Budget that favours most people as opposed to a few people. The business community is able to go to the banks and borrow money and do their businesses but the farmers need a lot of support. We need to resuscitate our farming institutions. A lot of research stations like the one in Njabini are lying idle. If we did this, then we would be able to get more taxes from this end. With those few remarks, I beg to support.

Thank you, Mr. Temporary Deputy Speaker, Sir. I also want to add my voice in congratulating the Minister for Finance for a job well done, but I will want to make a few comments touching on the same. There were a few issues which in my view were captured in the 2009 Budget but this time round, they were not revisited and implemented. One of them was the instant ticketing. It is an issue which I would imagine our hon. Minister would have gone into and tell us why he could not implement it. We need to see more accountability, more so, in the transport sector because the

Thank you, Mr. Temporary Deputy Chairman, Sir, for giving me the opportunity to also add my voice in supporting this Budget. I want to support the Budget because for the first time, we have gone past what we had expected to be the real Budget. In other words, the Minister has brought in some money that we had no idea that we had. Instead of leaving that money for misuse, that money will now be used for constructing roads and schools. I, therefore, really support him for doing that.

Mr. Temporary Deputy Chairman, Sir, I rise in support of the Motion, but I am very sceptical of the governance improvement measures that the Deputy Prime Minister and Minister for Finance has proposed because, unless he really has concrete proposals to improve governance, the tax collected will not end up benefiting Kenyans.

As the previous contributor said, the spending on ICT for Kenya Revenue Authority (KRA) is commendable, but why is there a slow rate of using the ICT in complying with the taxation measures? I think using ICT measures should be compulsory, so that filing of tax returns and whatever else is done by KRA can become more transparent, and can reduce the opportunities of rent seeking.

The slow rate of embracing ICT by the Government in all areas is because there are people within Government who want to resist any measure that can reduce or completely eradicate the opportunities for rent seeking. So, we expect the Minister to push and ensure that all the measures that are aimed at improving governance are improved. Mr. Temporary Deputy Chairman, Sir, I see exemptions from taxation of funds by insurers. The Deputy Prime Minister and Minister for Finance is thinking too much about those who are already able. He has recently allowed the insurance industry to raise

Mr. Temporary Deputy Chairman, Sir, I want to thank all the hon. Members who have contributed to this Motion. I will touch on a few points which have been repeated by a number of hon. Members. On the issue of interest that banks charge borrowers, that is why we are talking about the need to bring about strengthening of our own financial regulations in order to create fair competition amongst banks in our country. We are also encouraging banks themselves to also merge and create greater capacity and greater strength and at the same time creating more opportunity for our small and medium enterprises through encouraging and strengthening micro-finance institutions, and also by extending their outreach. These are some of the measures that the Government is taking in an attempt to ensure that credit is made available at affordable rates. Mr. Temporary Deputy Chairman, Sir, there was an issue about tax amnesty, which was raised by Mr. Shakeel. The tax amnesty that we have given is not a question of rich or poor. This is just to enable Kenyans in the diaspora to remedy their monies by investing in instruments, property and in industry, so as to boost our own economy. It is to encourage Kenyans abroad to invest in Kenya. That is really what drove us to provide for that tax amnesty. It is really not a question of benefitting the rich or the poor. These are Kenyans who live abroad. They have accumulated wealth abroad. We are giving them an opportunity to invest those monies in the country so as to create employment for our people. Mr. Temporary Deputy Chairman, Sir, there was the question of whether this Budget is pro poor. It is, indeed, pro poor. We have instituted a number of measures. To highlight just a few, there is the issue of removing the Advance Tax to matatu drivers and conductors. There is the issue of reducing Import Duty on rice. There is the issue of reducing Import Duty on wheat. All this was done in an attempt to ensure that we reduce the prices of basic commodities to our consumers.

Mr. Temporary Deputy Chairman, Sir, I beg to move that the Committee doth report to the House its consideration of the Resolution and its approval thereof without amendment.

Mr. Temporary Deputy Speaker, Sir, I am directed to report that the Committee of Ways and Means has considered the proposal relating to Excise Duty, Value Added Tax, Income Tax and Miscellaneous Fees and Taxes and has approved the same without amendment.

Mr. Temporary Deputy Speaker, Sir, I beg to move that the House doth agree with the Committee in the said Resolution.

seconded.

Hon. Members, that concludes the business on the Order Paper. Therefore, the House stands adjourned until tomorrow, 17th June, 2010 at 2.30 p.m.

The House rose at 6.05 p.m.