Hon. Members, we can proceed. Hon. Members, of course, you will appreciate that it is important for the Serjeant-at-Arms to confirm that any Member desiring to make his or her way into the Chamber has an allocated seat. Hon. Members, both in the Chamber and those in the various holding rooms, I wish to welcome you back to the House today, albeit under these very unusual circumstances. I wish to remind the House that I did issue an advance Communication dated 6th April 2020, and which was thereafter circulated to Members containing the business that was to be transacted during the initial scheduled Special Sitting on Wednesday, 8th April 2020. This is the business now appearing in today’s Order Paper. In this regard, I do order that the advance Communication be entered in the official journals of the House; that is, to be recorded in the

, and the Votes and Proceedings for today as though it had been conveyed this afternoon, for purposes of posterity. The House is accordingly informed. I thank you.

Hon. Members, as you are aware, Standing Order No. 42(2) and (4) of the National Assembly Standing Orders, requires the Speaker to cause transmission of any Message received from a Cabinet Secretary at a time when the House is not in session to every Member and later report such Message to the House at its next sitting. In this regard, on 26th March 2020, I notified you of a Message from the Cabinet Secretary for National Treasury which was received in my office during the recess period regarding his nomination of a person for appointment to the Office of the Chief Executive Officer (CEO) for the National Government Constituencies Development Fund Board. Hon. Members, pursuant to the provisions of Section 20 of the National Government Constituencies Development Fund Act (No. 30 of 2015) and Regulation 4 of the said National Government Constituencies Development Fund Regulations of 2015, the Cabinet Secretary (CS) is asking the House to approve the appointment of Mr. Yusuf Mbuno for the position of Chief Executive Officer (CEO) of the National Government Constituencies Development Fund Board.

Hon. Members, Section 20(1) of the said Act provides that there shall be a Chief Executive Officer of the Board who shall be recruited by the Board through a competitive process and recommendations made to the Cabinet Secretary for appointment with the approval of the National Assembly. Regulation 4(7) of the said Regulations 2016 further provides: (7) Where the National Assembly rejects the person nominated by the Cabinet Secretary, the Speaker of the National Assembly shall, within three days of the decision, communicate the decision of the National Assembly to the Cabinet Secretary and request the Cabinet Secretary to submit a fresh nomination.

Hon. Members, you will recall that the House declined to approve the previous nominee to this position on 17th March 2020. Therefore, Section 50 (5) (d) of the said Act requires that:

(5) Functions of the National Assembly Committee shall be: (d) To consider and report to the National Assembly, with recommendations, names of persons required to be approved by the National Assembly under this Act. I, hereby, refer the name of the said nominee, including his curriculum vitae, to the Select Committee on National Government Constituencies Development Fund to undertake the necessary approval hearings. Thereafter, the House shall consider the nominee in accordance with the Public Appointments (Parliamentary Approval) Act, 2011. Section 8 of the latter Act requires: (1) Unless otherwise provided in any law, a Committee shall consider a nomination and table its report in the relevant House for debate and decision within fourteen days from the date on which the notification of nomination was given in accordance with Section 5. 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.

Consequently, the Committee should notify the nominee and the general public of the time and place of approval hearings in good time. The notification should, therefore, be made immediately and the Committee may thereafter commence the approval hearings and submit its report to the House on or before Wednesday, 29th April 2020. Hon. Members, even as committees continue to undertake their legislative, oversight and representative duties as required by the Constitution and other statutes, it is important to do so in line with the Speaker’s Guidelines issued on 2nd April 2020 and 11th April 2020 regarding the conduct of sittings of the House and committees during the COVID-19 pandemic period. Thank you. Next Order!

Leader of the Majority Party.

Hon. Speaker, I beg to lay the following Papers - which are already uploaded into the Parliamentary Website - on the Table of the House today Tuesday, 15th April 2020: Gazette Notice No. 2787 of 27th March 2020 on the Declaration of a Notifiable Disease from the Ministry of Health. Legal Notice No. 29 of 2020 on the Public Finance Management (Coffee Cherry Advanced Revolving Fund) Regulations, 2020 from the National Treasury and Planning. Legal Notice No. 35 of 2020 on the Value Added Tax (Amendment of the Rate of Tax) Order, 2020 from the National Treasury and Planning. Legal Notice No. 36 of 2020 on the Public Order (State Curfew) Order, 2020 from the Ministry of Interior and Coordination of National Government. Legal Notice No. 37 of 2020 on the Public Health Order (Declaration of Formidable Diseases) Order, 2020 from the Ministry of Health. Legal Notice No. 38 of 2020 on the Public Finance Management (COVID-19 Emergency Response Fund) Regulations, 2020 from the National Treasury and Planning. Legal Notice No. 39 of 2020 on Public Order (State Curfew) Variation Orders, 2020 from the Ministry of Interior and Coordination of National Government. Legal Notice No. 42 of 2020 on Civil Aviation (Unmanned Aircraft Systems) Regulations, 2020 from the Ministry of Transport, Infrastructure, Housing, Urban Development and Public Works. Legal Notice No. 46 of 2020 on Public Health (Prevention, Control and Suppression of COVID-19) Rules, 2020 from the Ministry of Health. First Half National Government Budget Implementation Review Report for the Financial Year 2019/2020 from the Controller of Budget. List of nominees to 40 National Government Constituencies Development Fund Committees from the National Government Constituencies Development Fund Board for the following constituencies: 1. Bomachoge Borabu 2. Bomachoge Chache 3. Bura 4. Bureti 5. Butula 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.

6. Embakasi East 7. Fafi 8. Ganze 9. Gichugu 10. Kaiti 11. Keiyo North 12. Kilifi South 13. Kuresoi North 14. Lafey 15. Lagdera 16. Limuru 17. Lungalunga 18. Magarini 19. Mandera North 20. Matayos 21. Mbeere North 22. Mount Elgon 23. Mwingi North 24. Narok East 25. Narok North 26. Ndia 27. Nyali 28. Nyaribari Chache 29. Nyeri Town 30. Pokot South 31. Roysambu 32. Runyenjes 33. Sotik 34. Suba South 35. Thika Town 36. Turbo 37. Voi 38. Wajir East 39. Webuye East 40. West Mugirango

Very well. The next Paper is by the Vice Chair, Departmental Committee on Education and Research, Hon. Kimunya.

Hon. Speaker, I beg to lay the following Paper on the Table of the House today Tuesday, 14th April 2020: The Report of the Departmental Committee on Education and Research on the vetting of nominees for appointment as members of the Teachers’ Service Commission (TSC). This report has already been circulated to the Members.

Next is the Chairperson, Committee on Delegated Legislation or a member thereof. Who is a member of the Committee? Hon. Murugara.

Thank you, Hon. Speaker. I beg to lay the following Papers on the Table of the House today Tuesday, 14thApril 2020: 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.

Reports of the Committee on Delegated Legislation on its consideration of the following: i. The Value Added Tax (Amendment of Rate of Tax) Order, 2020; and, ii. The Public Finance Management (COVID-19 Emergency Response Fund) Regulations, 2020.

Very well. I think all the others which were also tabled by the Leader of Majority Party, save for those two, stand committed to the Committee on Delegated Legislation. So, you still have a lot on your hands. Leader of Majority Party.

Thank you Hon. Speaker. I beg to give notice of the following Motion: THAT, pursuant to the provisions of Standing Order 28(4), this House resolves to further alter its Calendar (Regular Sessions) for the Fourth Session (2020), as amended through the Resolution of the House on Tuesday, 17th March 2020 so as to- (a) adjourn the Sittings of the House from Wednesday, 15th April 2020; (b) hold other Sittings during the First Part of the Session as follows- (i) Wednesday, 22nd April 2020 starting at 10.00 a.m.; (ii) Wednesday 29th April 2020 starting at 10.00 a.m.; (iii) Wednesday 6th May 2020 starting at 10.00 a.m.; and, (c) resumes its Sittings during the Second Part of the Session on Tuesday, 2nd June2020 at 2.30 a.m. as per the Calendar. Hon. Speaker, if you allow me…

I think it is 2.30 p.m.

Sorry, it is 2.30 p.m. I think the staff in my office has written 2.30 a.m. Let me give notice of the next Motion.

Hon. Speaker, I beg to give notice of the following Motion: THAT, aware that the World Health Organization (WHO) declared the Coronavirus Disease 2019 (COVID-19) a global health pandemic and that the pandemic has led to unprecedented global health crisis; Cognizant that the Government, non-governmental institutions, well-wishers and authorities globally have joined hands and put in place a number of measures to contain the pandemic mainly through travel and behavioral restrictions, provisions of necessary protective facilities, equipping existing medical facilities, availing resources and providing necessary assistance and information; Appreciating the policy measures and interventions being undertaken by the Government of Kenya through the multi-agency National Emergency Response Committee on Corona Virus (NERC) led by the Ministry of Health to contain the spread of the pandemic and cushion Kenyans against its social and economic effects; 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.

Further cognizant of the legislative measures proposed by the Executive, including the establishment of the COVID-19 Fund and the reduction of the Value Added Tax, among others; Further appreciating the role of the National Assembly in taking necessary legislative interventions and offering the necessary political and legislative support, whenever required; Now, therefore, this House resolves- (a) to laud and appreciate the Government of the Republic of Kenya for the action and the policy measures undertaken so far in combating the spread of the virus, and addressing the economic effects of the virus in the country to cushion ordinary Kenyans from its effects. (b) to commend and appreciate all health workers and service providers in our country for their selfless efforts, commitments to service, care and compassion towards persons who have been infected and/or affected by the virus; and, (c) that, to supplement the COVID-19 Fund and other measures put in place, the Budget and Appropriations Committee reviews the approved Budget for the Financial Year 2019/2020 with the view to reallocating funds towards cushioning the country further from the short-term and the long-term effects of COVID-19, particularly allocating and ring-fencing funds for- (i) the provision of personal protective equipment (PPE), testing and medical equipment, including adequate ventilators; and, (ii) the establishment of a suitable national health facility for the treatment and management of infectious and viral diseases such as the COVID-19, with at least a bed capacity of 1,000 persons. I thank you, Hon. Speaker.

Let us have the Vice-Chair of the Departmental Committee on Education and Research, Hon. Kimunya.

Hon. Speaker, I beg to give notice of the following Motion: THAT, taking into consideration the findings of the Departmental Committee on Education and Research in its Report on the vetting of persons nominated for appointment as members of the Teachers’ Service Commission (TSC), laid on the Table of the House on Tuesday, 14th April 2020 and, pursuant to the provisions of Article 250(2)(b) of the Constitution of Kenya and Sections 3 and 8 of the Public Appointments (Parliamentary Approvals) Act of 2011, this House rejects the appointment of Mr. Mbage Njuguna Ng’ang’a and Ms. Leila Abdi Ali for appointment as members of TSC. I thank you Hon. Speaker.

Chairman, Select Committee on the National Government Constituencies Development Fund (NG-CDF).

Hon. Speaker, I wish to give notice of the following Motion: 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.

THAT, pursuant to the provisions of sections 43(4) of the National Government Constituencies Development Fund Act, 2015 and paragraph 5 (9 and 10) of the National Government Constituencies Development Fund Regulations 2016, this House approves the list of nominees for appointment to the 181 constituency committees of the National Government Constituencies Development Fund, laid on the Table of this House on 5th March 2020, 12th March 2020, 17th March 2020 and 14th April 2020:

Very well! Next is the Chairperson, Committee on Delegated Legislation. Let us have, Hon. Murugara, a member of the Committee.

Hon. Speaker, I beg to give notice of the following two Motions:

Next Order.

There is a request for a Statement by the Member for Githunguri, Hon. Gabriel Kago. The Member is not among those who are inside here. So, please walk in.

Hon. Speaker, pursuant to Standing Order No.44 (2)(c), I wish to request for a Statement from the Chairperson of the Departmental Committee on Health regarding the public health measures announced by the Government to reduce the risk of contracting COVID-19, particularly the requirement for mandatory wearing of masks for any person in any public setting, to avoid unwillingly spreading the virus. What type of masks are recommended by the Government?

Hon. Speaker, with reports that COVID-19 is being spread by infected persons who have no symptoms, it is clear that wearing a mask is crucial in protecting oneself from the virus that has infected over 1.7 million people worldwide and killed more than 100,000 in over 253 countries. So far in Kenya, a total of 208 people have been infected and nine killed by the virus. However, there have been concerns particularly from the medical professionals on the use of the N95 masks, which they say should be saved for the frontline health professionals as they are in short supply and are needed by first responders and health professionals.

Hon. Speaker, they recommend that members of the public should wear a basic two-ply cloth or fabric masks which have been recommended by the Center for Disease Control (CDC) and should be made in such a manner that they are as effective as N95 masks in protecting oneself against the virus.

Hon. Speaker, the three-ply N95 masks are made up of a thick mesh of plastic fibres that trap disease-causing organisms either on the inside for the person who is sick and does not want to release them to the environment or to the outside areas. They come in two forms - the N95 respirators and the surgical masks. They are disposed after each single use. On the other hand, the cloth or fabric masks can be either purchased or simply made at home. Those masks are affordable, washable and can be ironed and re-used. Therefore, they are environmentally friendly.

Hon. Speaker, it is against this background that I seek for a Statement from the Chairperson of the Departmental Committee on Health. In her Statement, the Chairperson should inform the House on the following: (i) Which type of masks has the Government recommended for use by the members of the public? (ii) How many institutions and companies have been approved by the Government to make masks for use in the country both cloth and N95 masks? What is the production capacity for both types of masks and are they able to meet the current demand? 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.

(iii) What is the recommended retail price for a single mask for each type both cloth and N95? (iv) What measures has the National Government put in place to ensure that quality effective masks are affordable and accessible by all members of the public? Thank you, Hon. Speaker.

Chair, Departmental Committee on Health, how long do you think you need to make a Statement?

Thank you, Hon. Speaker. By the fact that the Government is ready, I will table the answers to the questions raised by the Hon. Member in the next Sitting.

In the next Sitting! Which is when?

Next week on Wednesday.

Very well.I also want to give my observation and encourage the Member for Makueni to try and sit during these sittings. I know he has difficulties in sitting continuously. He is picking bottles of water all over. I have been seeing him. You are advised to pick a bottle of water at the entrance and not jump around picking water. What is wrong Hon. Maanzo? Hon. Kago.

(Githunguri, JP

She has.

Kago (Githunguri, JP): Wednesday next week. It is because of the urgency of this issue. Thank you, Hon. Speaker.

Maybe, you will hear something beyond this as to why she is right to talk about Wednesday. Yes, Leader of the Majority Party.

Hon. Speaker, you have given guidelines and I think they must be followed. You have told Hon. Maanzo that if he reads the guidelines, movement is not allowed. I have seen so many empty seats and Members had confirmed to attend. This is not good. In fact, the Members who confirmed and did not attend should be known. Hon. Speaker, I am asking for your discretion to allow other Members who are somewhere and want to participate to take those seats. In future, if you confirm that you want to be here, then you must be here. You cannot reserve a seat. The only place where you can reserve a seat and fail to go is your home. This is the Chamber. It is now 40 minutes since we started. If they have not come, I think we need to ask Members who are in the Lounge or outside and want to participate in the debate to come in.

I want the Serjeant-at-Arms to take note of those who have not come in the next five minutes so that a decision can be made. Who is that Member raising his hand? Is that Hon. Pukose?

On a point of order, Hon. Speaker. I am seated in an unusual position. In terms of putting on the mask, both the Leader of the Majority Party and the Majority Whip are pushing their masks backwards. The mask is supposed to cover both the nostrils and the mouth. It is not just for covering the mouth alone. So, I think the proper putting on of the mask is very important for us to control the spread of the virus. It is not just for 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.

pleasure but for serious business while we are in this House. Hon. Speaker, you have properly worn yours.

There is somebody else who has raised her hand. I am able to see the names from my screen. Is that Hon. Nyamai also seated in a very unusual corner? Hon. Nyamai.

On a point of order, Hon. Speaker. This is in relation to what Hon. Duale, the Leader of the Majority Party, has said. As you can see, there are many positions that are unoccupied. It is a serious concern because it is important for Members seated out there to be given an opportunity to sit in the positions that are not taken. I am sorry I raised my hand because my card seems not to be working. It is extremely important to have Members in this House so that they can speak instead of having vacant seats. Some MPs had confirmed that they would be in the House but are not here. Thank you, Hon. Speaker.

Why does everyone want to contribute to this, including Hon. Junet?

Hon. Speaker, I have an issue which I want to raise with you. The guidelines you issued were very clear and among the best I have ever read. Hon. Speaker, one of your guidelines was that anybody who is above the age of 58 years should not appear in the Chamber. I can see Hon. Kimunya and Hon. Pukose here. These are octogenarians who should be at home. We do not want to lose any Member of Parliament. Another one is the Member from Meru, Hon. Kubai. Hon. Kubai retired from the Civil Service before we were born and he is here. We love each other. I am doing this out of good faith and a good heart. I want us to be here after the Coronavirus pandemic. So, when you are told that if you are above the age of 58 or 60 years you should stay with your grandchildren, you should not feel offended. I have evidence because the dates of birth are written in the website of Parliament. So, that guideline is not being followed. Would you allow these people to go back to their homes and stay with their grandchildren at this point in time?

Hon. Members, we need to do business. You see the danger of mentioning somebody, Hon. Junet. Hon. Iringo now wants to say something because he has been mentioned.

Hon. Speaker, I want to bring to the attention of the Hon. Member that even in your guidelines, it is clearly stated “may” and not “must”. You are encouraged, but you are not stopped. I am here because I represent the great people of Igembe Central. I know I am old enough and I have no problem. Therefore, if you have problems, those are your problems. Age is a number. There are those who are 25 or 13 years and they are suffering. There are those who are 70 years and above and they are walking tall. So, I find his allegations out of place and malicious. Let us go to business. Let us not dwell on sideshows. That is why we are in this Chamber. We have sacrificed to come here to transact business, especially the business that the Leader of the Majority Party has already put before us. Thank you, Hon. Speaker.

I think we will deal with this. I am sure Hon. Iringo got it right. Hon. Members, as you know, there has been re-configuration of the Chamber. With the masks on, I am not able to identify even some very familiar faces.

On a point of order, Hon. Speaker.

Who is this? Is it the Member for Suna West, Hon. Masara? You are also called Francis.

Thank you, Hon. Speaker, for calling me by the right name. My point of order is related to what the Leader of the Majority Party has just 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.

talked about on social distancing. As much as we appreciate the precautions that the House leadership is taking to take care of the Members, I wonder why in the National Assembly the process is so much. Look at the whole of this room, the spacing should be 1.5 metres.

Now I will force you to sit down. This has been done on strict advice by the public health personnel who have been here to even try to check on so many other issues. In fact, I wish to tell you in advance that the advice is that when we use the Chamber one day, we must allow four days for it to be disinfected. We are following that advice for the benefit of Members and their health. It is not because it is a luxury. So, Hon. Masara, I am sure you may wish to have somebody seated next to you. You may be feeling cold but, please, just bear with us. It is not out of fun. If you look around, you can see that there is an element of social distancing, part of which is not direct. We can put somebody down here but you will be so close to Hon. Lodepe here. You can see that there is quite some distancing that has been done strictly on that advice. Hon. Masara, please, I am sure you may be feeling cold but I am sure that, sooner rather than later, you will be feeling warm. Hon. Lodepe, you still do not want us to do business?

Thank you, Hon. Speaker. Mine is just a concern. We are wearing different types of masks and I wonder if all of them have been approved by the medical fraternity or we are just putting them on. Kindly, if you can advise on the type of mask we should put on, the better. Thank you, Hon. Speaker.

You are now assuming that I am an expert in that field. Hon. Members, I wish to make this announcement. One of the empty seats is Number 60, which was booked by Hon. Thuku Kweya, Member for Kinangop. The other one is Number 61, which was booked by Hon. Leonard Yegon. The other one is Seat No.10, which was booked by Hon. Didmus Wekesa Barasa Mutua, Member for Kimilili. Now that all the three Members are not in, and now being almost 47 minutes since we started this Sitting, I will allow the Serjeant-at-Arms to allow three Members. The first one should go to Seat No. 60. Those three Members are now advised to stay in the other holding areas. Then there is Seat No.61. The Member for Nyali will sit on Seat No.60. You are very close to Hon. Lodepe. The Member who is making his way in, the Member for Mvita; which one will you take? You will take No.10 and then the other Member will take the other one up there. I can see an empty seat there. That is Hon. Ruweida Obo, the Member for Lamu County. You know some of them by their height.

Hon. Duale, what is your point?

Even those of us who live with people who wear such a dress can tell who they are. Hon. Speaker, I want you to rule on this matter. This is a serious matter. The President of the Republic of Kenya and the National Security Council decided to lock down four counties; namely, Nairobi, Mombasa, Kwale and Kilifi, notwithstanding the calibre and status of the persons involved. We cannot prevent the people of Mombasa from coming to Nairobi or vice versa and allow Members of Parliament to come from either Kilifi, Mombasa or Kwale. I have nothing against it, unless they can confirm to Hon. Speaker that during the lockdown, they have been in Nairobi. If the Hon. Members for Nyali, Kilifi North, Mvita and others have just left Mombasa, 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.

Kilifi or Kwale, Hon. Speaker, this is a House that makes laws. That is why I have just tabled all the regulations from the National Security Council (NSC) even concerning the curfew. Hon. Speaker, we need your guidance that we are not different from the rest of the Kenyans who live in Mombasa. So, give us directions whether Hon. Abdullswamad Nassir, Member for Mvita, Hon. Mohammed Ali, Member for Nyali and the rest have confirmed to you. Right now, we have the issue of age. In fact, we are going to another dangerous scenario. We are violating the law. You saw the President of South Africa suspending a minister who violated the lockdown. We cannot allow MPs to violate that. So, as we start business, for those of us who want to follow the law and make sure that there is safety and health – and I am not saying my colleagues have issues - but it should look tidy and neat. Are they from Mombasa this morning? If they are, I will be the first person to walk out and go home.

You are also from Garissa!

(Garissa Township, JP) No! I have said it. Garissa is not locked down.

Hon. Members, the advice from the Public Health Directorate is to encourage as many Members and staff as possible to go for voluntary testing. If you test positive, then you go into isolation. It is only in those circumstances that you will not be allowed here. Of course, we know that there are Members from those other three counties that have been locked down. That is Mombasa, Kilifi and Kwale. However, - and I do not want to provide any information that I may have - I know some of them have been very robust in communicating and posting their results. At least, I know. I have been following. In the last few weeks, I have also learnt that many of them do not sleep early - not least Hon. Peter Kaluma and several others. They have something they call “the night shift team” but I am very happy and proud of the work that they have been doing. I believe once we start business, the House and the country will be richer by some of the issues that they have raised. They will be able to share them with all of us. I do not want to begin asking every Member… We have not even started business. Remember that there are some of your colleagues who are out there in the holding rooms and they also have a right to come and contribute to any of the issues that are being debated. So, I plead with all of us that if we could… If I start requiring everybody to start producing their medical certificates, then we may have to adjourn, go to the gate and ask people to provide them. My assumption is that the Members are fully aware of that advice from the Directorate of Public Health. I want to believe that. I do not want to say which of the Members, but I know many of them have been posting their negative results from very authoritative sources. I think they were doing it out of their own volitions. They were not compelled. It may not require anybody to begin doing it publicly. The important thing is that we are all advised that, that is the way we should operate given these prevailing circumstances. So, if I do not ask the Member for Nyali, Member for Kilifi North and Member for Mvita… If we allow each one of you to address that issue, you may start asking whether Hon. Chris Wamalwa also has his certificate and then we will be in a very difficult situation. Maybe, we would have to go to the Ministry to get all of us certified. We will have no reason to believe that another person has not tested positive. Let us not be suspicious. Let us encourage one another, including Hon. (Dr.) Robert Pukose. There is nothing wrong with Hon. (Dr.) Robert Pukose attending the Sitting. In fact, I know several other Members who have requested me that they would want to come and give their contributions but, unfortunately, we had to limit the numbers to the ones that we have now. So, can we do business? Next Order.

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.

Leader of the Majority.

Hon. Speaker, in the next meeting, we need to move Hon. (Dr.) Robert Pukose to a closer position. He does some specific duties. That is the only request we are asking.

Hon. Speaker, I beg to move the following Procedural Motion: THAT, pursuant to the provisions of Standing Order 30(3b), this House resolves to hold another Sitting today Tuesday, 14th April 2020 after the 2.30 p.m. Sitting. The House Business Committee - which you chair - in its meeting earlier today resolved that the House has this important Sitting. The purpose of this second Sitting is to limit the number of sittings of the House per week considering the COVID-19 pandemic worldwide. This Sitting will enable the House to conclude crucial business before the House as it is appearing on the Order Paper today, and thereafter adjourn until next week. Hon. Speaker, under your leadership this morning, we have agreed that we should deal with the matter today so that we can have a full day sitting every Wednesday morning from next week. Every week we should meet once until we are sure that the safety and the health of our Members is okay. Hon. Speaker, you have seen the kind of work that is before us. This is legislation from what the Committee on Delegated Legislation is doing and what the Departmental Committee on Finance and National Planning has been subjected to in the tax laws. I am sure within the course of today, the Cabinet Secretary for Finance and National Treasury will send the Supplementary Estimates. Hon. Speaker, somebody somewhere said that Parliament is dead. So, I told him that he can only say that his House is dead. I also asked him to watch this afternoon - and I hope he is watching from wherever he is - because based on what we have today, it tells you that all that the President said can only be implemented by this House. In fact, it is now that Kenyans are seeing between the two Houses, which one is dead, upper and lower. I mean, people met the other week and they just said nothing. I ask the Chair of the Departmental Committee on Health to give us updates every week. If the Chair of the Departmental Committee on Finance and National Planning, Hon. Limo, is here, his Committee has to deal with the Tax Laws (Amendment) Bill. I am sure Hon. Ichung’wah, Hon. Mbadi and Hon. Makali Mulu are waiting for the Supplementary Estimates. I am sure our colleagues in the Committee on Delegated Legislation, led by Senior Counsels, Hon. Shamalla, Hon. Shollei and the rest, are doing good work. I have tabled more documents. We have agreed that we will have two Sittings today so that we deal with what we have before 4.00 O’clock. We will then take a break for five or 10 minutes because there is no place where we can go and take tea. You can drink your water and come back after five or 10 minutes. We will then go to the Second Sitting, finish and come back next week. The Motion for the alteration of the Calendar will come in the second Sitting. If we approve it, we will have time to deal with many other matters. There is the matter of the Teachers’ Service Commission (TSC) and the National Government Constituencies Development Fund (NG-CDF) committees. Let us 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.

not leave so that we finish all those issues, including the Second Reading of the Tax Laws (Amendment) Bill. That is why we have two sittings. I ask Hon. John Mbadi, who is a Member of the Committee and was in the meeting, to second.

Let us have Hon. Mbadi.

Thank you very much, Hon. Speaker, for giving me this opportunity. As I second this Motion, I just want to say the following: First, our in-tray is full. I want to put it clear that we have to deal with the case of the nominees to the TSC. We can only deal with that if we have another sitting this afternoon. Hon. Speaker, you said in your earlier Communication that it has been advised by the Directorate of Public Health that if we sit, we need to take four days before we have another sitting. Therefore, we are not able to sit tomorrow to deal with some urgent issues. In that case, therefore, we request that this House allows another sitting this evening so that we can deal with these matters. I hope the House will allow the Second Reading of the Tax Laws (Amendment) Bill in this Sitting. If we fail to do so, we can debate it in the Second Sitting. I appeal to Hon. Members to allow that we have another sitting this afternoon. I second.

Hon. Members, it is not everybody who understands some of those processes. Sometimes people wonder why we have a second Sitting. Hon. John Mbadi has done justice to it. That is why there were notices of motion given. Those Motions will be debated in the second Sitting. That could not have been done in this Sitting.

Put the Question!

Is it the desire of the House that I put the Question?

Yes!

Next Order.

Let us have the Chairperson of the Committee on Delegated Legislation. Proceed, Hon. Murugara.

Hon. Speaker, I beg to move the following Motion: THAT, this House adopts the Report of the Committee on Delegated Legislation on its consideration of the Value Added Tax (Amendment of the Rate of Tax) Order, 2020, laid on the Table of the House on Tuesday, 14th April 2020 and, pursuant to the provisions of Sections 6 and 67 of the Value Added Tax Act, 2013, approves the Value Added Tax (Amendment of the Rate of Tax) Order, 2020 published as Legal Notice No. 35 of 26th March, 2020. We find ourselves in an extraordinary situation. The human race is under attack from a virus that is unrelenting and that has claimed approximately over 120,000 lives globally. As at today, the Coronavirus cases worldwide stand at about 1.9 million. Locally, as at yesterday, we had about 208 confirmed cases in which we also suffered nine deaths so far. The numbers are on a daily rise. Arising out of this situation, the Government of Kenya has put in place various measures to contain the spread, effect and impact of the COVID-19 pandemic in the country. One of the interventions to help the citizens is to reduce the Value Added Tax (VAT) from 16 per cent to 14 per cent. The Order was issued following a directive by the President on 25th March 2020 to the Cabinet Secretary in charge of the National Treasury to invoke powers under the VAT Act to reduce the rate of VAT on imported goods and services to ease the tax burden on the public and as relief on the possible individual citizen’s economic hardships that may be occasioned by the attack by the virus. In exercise of the powers conferred by Section 6 (1) of the Valued Added Tax Act, the Cabinet Secretary produced the VAT (Amendment of the Rate of Tax) Order, 2020 and this was gazetted on 26th March 2020. The Order seeks to amend paragraph (b) of Section 5 (2) of the VAT Act by reducing the tax payable on goods and services from 16 per cent to 14 per cent. Having been seized of the instrument, the Committee on Delegated Legislation examined the instrument against the Constitution, the Interpretation and General Provisions Act Cap. 2 of the Laws of Kenya, the Value Added Tax Act, 2013 and the Statutory Instruments Act, 2013 to confirm whether the instrument was compliant.

The observations of the Committee were as follows: The timelines were found to be in order as the Value Added Tax (Amendment of the Rate of Tax) Order, 2020 was gazetted on 26th March 2020 and submitted to the Clerk of the National 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.

Assembly on 1st April 2020. The Order came into force on 1st April 2020 in accordance with paragraph 3 thereof and remains in force subject to and approval or disapproval by the National Assembly or upon the lapse of the Order as stipulated therein.

There was no public participation. The reasons for this are given in the explanatory memorandum which is attached to the statutory instrument. Due to the nature of the law before the House, the timeframe and the circumstances, the Committee was persuaded that it was not necessary to have public participation. Having been satisfied that the statutory instrument, that is the Value Added Tax (Amendment of the Rate of Tax) Order, complies with the Constitution, the Interpretation and General Provisions Act, the Value Added Tax (VAT) Act and the Statutory Instruments Act, the Committee recommends to this House to approve it.

Hon. Speaker, as I conclude, allow me to point out certain issues regarding this law which, first and foremost, is to the benefit of the citizens. Tax is a burden to everyone. Any proposal to reduce the same is always a positive one. This is one reason we said that it was not necessary to hold public participation. Two, it is important we commend the Government. A lot has been put into place to ensure that we fight this pandemic, including provision of masks, sanitisers and gloves, and ensuring that our medical teams out there are well catered for.

It is also important to thank the Members of Parliament for finding time to sit at this extraordinary time to approve this law which is to the benefit of our people. Kenyans look upon us to see how we, as a House, will participate in fighting or combating this pandemic. Therefore, thank you very much Members of Parliament for availing yourselves to come and make this approval. I also thank the Committee because it has done a diligent job very fast. Committee members sat even when we were told that the House was under attack by the Coronavirus. That did not matter to them. They came, sat, deliberated and approved these regulations.

With those remarks, thank you very much. I now call upon Hon. Member who represents special interests, including cases such as this one, Hon. Jennifer Shamalla, to second. I beg to move the Motion.

Very well. Hon. Shamalla.

Hon. Speaker, I rise to support the Motion by the Committee on Delegated Legislation. As rightfully said and stated, the Committee has a lot on its hands. However, this is not the only committee that has a lot on its hands in these challenging and extraordinary circumstances and times. All the Committees of the National Assembly have a lot on their hands.

At this point or juncture, I want to state that it is unfortunate that a narrative is being shaped out there that we, as parliamentarians, are doing nothing to fight the Coronavirus. Perhaps, the media can assist us in civic education and explain to Kenyans that the committees are the engines of Parliament. Everything is done there, whether they are petitions, regulations or legislative proposals. That work is done in the Committees and then it is brought to the plenary. So, it is unfair to state that we are doing absolutely nothing.

I want to go back to these regulations. I wish to state that under very unusual and extraordinary circumstances, we request this Report to be adopted. The regulatory authority did not submit the process to public participation. In order to satisfy this requirement, Parliament, through the Clerk of the National Assembly, put an advert in the local dailies inviting interested members of the public to submit written memoranda regarding the Order. By close of business on Monday, 6th April, the Office of the Clerk had not received any memorandum relating to this particular regulation. 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.

Having stated that, I wish to finally state that in whatever we do as the National Assembly, we must uphold the Constitution of the Republic of Kenya and our laws. As difficult as it is, let us not get carried away to do things that are outside the law.

With those few remarks Hon. Speaker, I beg to second the Motion.

Hon. Members, I wish to give some directions. I have already received some indication from three Members who are in some of the holding areas out there of their desire to participate in the debate. However, I will get one Member here. Is Hon. John Mbadi desirous to contribute?

Yes, Hon. Speaker.

After his contribution, I will get another Member out there because we are all colleagues. It is only fair that we also hear what they want to say about this particular Motion. After the contribution by Hon. John Mbadi, the next Member is Hon. Nguna. He can be informed so that he can be somewhere standing with the Serjeant-at-Arms ready to come and contribute from there. Hon. John Mbadi.

I thank you, Hon. Speaker, for giving me this opportunity to support the adoption of this Report of the Committee on Delegated Legislation on its consideration of the Value Added Tax (Amendment of the Rate of Tax) Order, 2020. This particular Regulation that was laid on the Table of the House today amends the rate of VAT from 16 per cent to 14 per cent.

Let me start by first congratulating the Committee on Delegated Legislation. I was interviewed by one of the media houses yesterday. From that interview, I realised that many people whom we expect to be informed do not understand the workings and operations of Parliament. More importantly and surprising is that even the functions of legislature are not understood properly. It is the duty of the Executive to govern a country. It is our duty to oversee it in its execution of the governance function. It is the duty of the Executive everywhere in the world to come up with proposals, policies and guidelines on how to move the country forward. Our role as Parliament is to take care of the interest of the public by evaluating the same and agreeing, rejecting or amending. What the Committee on Delegated Legislation and other committees are doing is what the public needs to understand. That this House, as a plenary, only adopts the Reports of the Committees, which act as technical teams for the House. Hon. Speaker, following the declaration of Coronavirus (COVID-19) as a global pandemic and the intensification of measures intended to contain the spread of this infection, the adverse effect on the economy is already being felt. We are not alone in this crisis. It is a global crisis that requires every country to look inwards for a homegrown solution. You cannot copy and paste. We have to define our own solution in terms of trying to mitigate the crisis at hand. It is expected that the economic downturn will be worse than anything ever witnessed, including the financial crisis experienced in 2008. As I said, governments across the globe have come up with various fiscal and monetary measures to mitigate the impact on households and businesses. On 25th March 2020, our President outlined a number of measures aimed at cushioning Kenyans against the effects of COVID-19. The reduction of the rate of tax on Value Added Tax (VAT) as proposed by the 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.

President, which today we want to give the Executive the legal authority to start implementing, is welcome. Many may ask why it is necessary to convene this meeting to approve the amendment of the change of VAT rate from 16 per cent to 14 per cent. It should be noted that the High Court, in the case of Okiya Omtatah Okoiti, whom we all know, versus the Cabinet Secretary (CS) in charge of the National Treasury and three others, Petition No.253 of 2018, declared the provision of Collection of Taxes and Duties Act. This allowed for tax measures to be introduced through a Bill prior to its enactment as an Act, to be null and void. In addition, the High Court stated that the Finance Bill of that year, that is, 2018 or any part or provision thereof, including on matters taxation, cannot be implemented before the Bill becomes the Finance Act after it goes through Parliament. In a nutshell, it is imperative for Parliament to pronounce itself on these tax measures, including these VAT law amendments and approve the same. This will give the legal effect and avoid any loopholes that might be exploited by anybody so that we do not have these laws invalidated. In adopting these measures, it is important to appreciate that all consumers, both individuals and businesses of taxable goods and services, will benefit from this initiative effective 1st April 2020. The reduced VAT rate will make taxable goods and services more affordable, a benefit to all consumers of goods and services. If implemented effectively, the two per cent reduction will go a long way in cushioning consumers. We need to put much emphasis on this. Forgive me for using such strong terms, but the business people in this country sometimes act as bandits. Whenever there is an increase in taxation, the business men and women are very quick to increase prices. However, whenever we come up with a legislation that is supposed to reduce the burden on Kenyans, the business people are very reluctant. They want to enjoy the very support you are giving Kenyans to make huge profits. This is not the time for business people to make profit. If you make profit out of these measures, you will be ‘eating’ blood money. I appeal to businesses to be considerate of our consumers. This is because, even these businesses will benefit from the reduction of VAT rate, which will help them have a better cash flow. In fact, one of the President's pronouncements, which I support is that the VAT refund that has been piling with the Kenya Revenue Authority (KRA) should be given back to the business people for them to be liquid at this time. What can be better than that?

As I conclude, I want to thank and encourage the Standing Committee on Delegated Legislation, which has been very busy in the 12th Parliament, to go on. Others may not see your work, but as a Parliament and as the leadership of this Parliament, we know that this is one of the busiest committees of this House.

Hon. Speaker, I support.

Hon. Nguna you may proceed.

Thank you Hon. Speaker for this opportunity. I take this opportunity to congratulate the Committee on what it has done. Although I have not had enough time to go through this, I have read the presidential directives. I would also like to congratulate the President together with the CS for National Treasury for the 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.

measures they have taken to curb this global pandemic that we have witnessed so far. It is not only Kenyans, but many people all over the world are going through a very difficult time.

I support this Bill based on the assumption that it will be implemented as soon as possible. One of the key issues I noted with regard to the reduction of the VAT is the 100 per cent tax relief to people earning Ksh24,000 and below. This is good and the President did a good job. However, this...

Please, just proceed.

Hon. Speaker, I was coming to discuss the presidential directives on the Public Finance Management Act. It is not all about the VAT. I would like to seek leave to go through this VAT issue and then come back to you.

Oh God! I want to encourage all Members, even those in the other various holding rooms to follow the business.

Let us have the Chairman for the Standing Committee on Budget and Appropriation.

What is your point of Order, Hon. Ngunjiri Wambugu?

Thank you Hon. Speaker. I rise on a point of order, and I have tried to do so on other occasions. This is a matter of procedure. I was allocated seat No.18, but the machines here are not working. I suspect that this could be the case with several other Members.We will be sitting like this and once one is seated, one cannot move places or even approach the Speaker to notify him that one’s machine is not working. Essentially if you are put at a place where you cannot be recognized, then you cannot participate in the House’s discussions.

I ask that the Sergeant-at-Arms and the management ensures that the machines are working. Once we sit, we cannot move and thus cannot be heard because the gadgets are not working. I have been unable to raise several points of order until now that I have shouted, which I am sure I am not supposed to do. As we move forward to next week, they should always make sure that once they have determined where Members will sit, they should make sure that the machines assigned are in working condition. If not, a Member will sit and do nothing the entire time of the Sitting.

Thank you very much Hon Speaker.

To improvise, given the circumstances we are in, I encourage Members to raise their hands, if one is seated where a machine is not working. Maybe I did not see Hon. Wambugu on account of height. The point is noted nevertheless.

Hon. Ichung‘wah, you have three minutes.

Thank you, Hon. Speaker. As I support the Report, let me also congratulate the Committee on Delegated Legislation for the good work. 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.

Indeed, even the Budget and Appropriations Committee, as Hon. John Mbadi indicated, we had occasion, amidst this crisis, to meet and deliberate on some of the proposals that have been made including the one on VAT.

Even as I support, I sound a word of caution. Newton’s Third Law of Motion states that for every action, there is an equal and opposite reaction. Indeed, even as the Government and other governments around the world seek to institute measures, some that may be popular with the public because they are very good, there are others that might be counterproductive. In particular, I want to sound caution on the reduction of VAT from 16 per cent to 14 per cent. Those who sit with us in the Budget and Appropriations Committee and those who sit in the Departmental Committee on Finance and National Planning are privy to some of the analysis our Parliamentary Budget Office presented to Members of Parliament. With this proposal, we are going to lose revenues to the tune of Ksh49.5 billion in one quarter. Maybe, we should be asking ourselves: Would we rather have the Ksh49.5 billion and offer food rations to Kenyans or we copy and paste what is being done in other countries, as the Leader of the Minority Party has said? We copy and paste things that are being done by other countries that operate under different circumstances; therefore, reduce the revenues we ought to get. I support, but with a word of caution. I encourage the Executive that even as they institute certain measures, they should be measured and cautious of what we do so that we do not shoot ourselves in the foot as we try to walk in the midst of a very serious crisis.

With those remarks, I support the Committee. I encourage members of the public, especially those on social media and the mainstream media, as Hon. John Mbadi said; to understand how this House works. This House works through committees like the Committee has done and others are doing.

I was supposed to go to Holding Room B, but in the meantime, let me hear Hon. Makali. Please, can you bring close to the door the Member for Kajiado South? He is in another different holding room. As, you can see, he has been fetched.

Thank you, Hon. Speaker, for giving me this opportunity. I join my colleagues to thank the Committee for the good work it has done. We cannot tire of saying that most of the work in this House is done through committees. When people do not see us seated, as we are today, they should know that a lot of work is going on behind the scenes. That must be noted by Kenyans. The House is being bashed, and I agree with Hon. Mbadi, because of the failure to understand how Parliament operates.

I want to add one point to what has been said by my colleagues so that we do not repeat what has been said. The issue my Chair, Hon Ichung’wah, is raising is targeting. We will lose about Ksh49.5 billion as a result of this move. The question we want to ask as Kenyans is that if we reduce the price of an item by Ksh2 as a result of this, and the Leader of the Majority Party buys that item, and a voter who lives in Kibera buys the same item at the same price, would it have the same impact if the money had been targeted to the person in Kibera compared to when it is targeted to Hon. Mbadi? The economists in the National Treasury must do their work. The issue here is targeting. We would rather get the Ksh49.5 billion and provide basic requirements to people in Kibera, Mukuru Kwa Njenga, and in the rural settings, who we have already said are vulnerable. In that case, we will be helping Kenyans. But when we have a general rule like this one, where even you will benefit from that move, we are not doing justice to this country. 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.

So, we support, but as we move to the future, we must think about targeting.

With those remarks, I support.

Hon. Members, in all fairness, Hon. Nguna came from the Dining Hall while Hon. Katoo came from the Members’ Lounge.

Thank you, Hon. Speaker. I rise to support this Motion. I was told by the Members in the Chambers Lobby, where we were, to inform the House that the television screens have no volume, therefore, they cannot follow what is being said here. So, you forgive us in case we repeat what has been said or even if we contribute to the wrong Motion because we could not hear the proceedings.

I support this Motion brought by the Committee on Delegated Legislation on the reduction of VAT from 16 per cent to 14 per cent. I agree with those who have spoken before me that COVID 19 is a global pandemic; therefore, it affects the global economy. But as its effects are felt, there are different scenarios depending on different economies and different responses being put in place by different countries. I appreciate the responses by the Executive, led by His Excellency President Uhuru Kenyatta, which have so far been proposed for the approval of this House. Such mitigation is very important. The need for reduction of VAT from 16 per cent to 14 per cent is because most of the sectors that are going to be affected by this global pandemic are mostly the service sectors especially transport, the hotel industry, wholesale and retail. Mostly they rely on import and export goods that are affected most by the VAT, both domestically generated and those imported. There is also the supply chain, inflation, interest rates and exchange rates because of the global economy. There are issues also to do with trade imbalances. All these are going to affect the service sector. Therefore, there is need to reduce VAT so that the end consumer is safeguarded. I have checked what the Parliamentary Budget Office has suggested that we will lose about Ksh49.5 billion by reducing VAT from 16 per cent to 14 per cent. In this last quarter of the financial year, we can forgo it and maybe when the pandemic is controlled, we look for ways of cushioning the economy and see whether we can recover in a short time. I support the Motion.

Hon. Wamalwa, you have the Floor.

Thank you, Hon. Speaker. I rise to support the Motion. First and foremost, I want to thank His Excellency, the President for being at the frontline by coming up with these measures to cushion Kenyans from the effects of COVID-19. My colleague mentioned Newton’s Third Law, where action and reaction are equal in the opposite direction. In this case, we need to understand that it will be very difficult to discriminate when it comes to prices. If you look at the normal distribution gap, you will see that majority of Kenyans 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.

are poor. We cannot discriminate in terms of pricing because of Members of Parliament whose population is statistically insignificant. If you give the scenario of a factory, there are raw materials that attract Value Added Tax (VAT) that go into that factory. If you reduce VAT from 16 to 14 per cent, you are reducing the production cost in that factory to enable the employer to stay afloat so as to continue providing employment to Kenyans. The President has many advisers, and an analysis must have been done for him to arrive at this decision. We must understand the application of VAT as it is not just directly to the product, but at times it is an input in the production process of the value chain. As we move forward, we want to caution some unscrupulous business people. For one reason or the other, the trickledown effect of 2 per cent will not be felt. We are calling upon the police to be vigilant because once this is done, we want to see prices of essential goods going down. We must monitor so that people do not make abnormal profits. This benefit must trickle down to the common mwananchi . Hon. Speaker, the issue of giving rations is good, but it has its own challenges - logistical and discriminatory. We are here to salute the President for reducing VAT, but we want to call upon the KRA to monitor this in its own way. Article 118 of the Constitution is important when it comes to public participation so that we can hear the opinions of other people. As we move forward, in future, we need to have purposive sampling whereby Parliament can write to some relevant authorities like the Institute of Certified Public Accountants of Kenya (ICPAK). In this case, if such an institution was given an opportunity, it would have written an authoritative paper to inform the House. We appreciate that this House has brains across the board – from economics to the accounting field – but the Kshs49.5 billion that we will lose is a double-edged sword that needs a delicate balance. It is from taxation that governments get money to run their programmes. During this period of COVID-19, there should be extra ordinary measures to safeguard Kenyans. As we move forward, to ease the burden, the Government should talk to China to undertake a restructuring of the debts owed to her by Kenya because we are told that the Coronavirus pandemic originated from there. This is a global pandemic and Kenya alone cannot manage it. It is a global idea that we must all come together to find the best way forward. I wish VAT would have been reduced from 16 per cent to 12 per cent. Let us work with the 2 per cent reduction. If in future we realise that this thing cannot be managed, we can reduce it further – particularly on essential goods. Regarding fuel cuts across the industry, there are many levies when it comes to fuel. If we focus on reducing taxation on fuel, it will cut across production and other essential services. I do not have much to add because I know my time is up, but I would like to salute the President and support the Motion. Thank you and God bless you.

Let us now hear Hon. Kimunya.

Thank you, Hon. Speaker. I want to support the Committee in terms of the passage of the regulations. We do not have a choice on that as we gave the CS for National Treasury the choice of altering the VAT rates through regulation, and that is what he has done. We are okay with that. I wish he went through the other tax laws amendments so that we look at the totality of the various taxes being reduced, increased and harmonised. The VAT is a consumption-based tax; you pay it when you consume. If you do not have money to consume, there is no benefit to accrue to that poor person. If you look at the totality of what we are going to consider later in terms of tax laws, we are reducing the income 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.

taxes, which means more disposable income to people at higher levels. The rich will have more money to consume. They will not pay tax because we have also reduced VAT. I want to agree with the Chairman of the Budget and Appropriations Committee, and Hon. Makali Mulu; that, perhaps, this is a very good populist move; but in another two or three months, the National Treasury will realise that they made a mistake on this one – that, it is not the kind of move they expected would benefit the common man. You cannot lower prices of goods through VAT adjustments in an economy where prices are liberalized. The trader has no obligation to reduce prices. In fact, they could raise the prices tomorrow on account of shortages and the poor person will not benefit, but we will have lost Kshs49.5 billion. We are sure that the National Treasury will lose Kshs49.5 billion, but we are not sure whether that money will benefit the poor mwananchi . The National Treasury should look at things from a totality perspective. You cannot lower Income Tax to provide more disposable income to people you should be taxing to raise money to cushion the poor, while at the same time you benefit those same people by lowering VAT. Hon. Speaker, I wish I had an extra second because today we have lowered the price of fuel by a whooping Kshs18 when there is no movement. As we do so, we must remember that the prices of fuel have gone down on global basis because of an impasse within the Organisation of the Petroleum Exporting Countries (OPEC). Member countries of OPEC have since agreed to cut production. So, the prices of fuel will go up again next month. What will happen at the local level? All traders will start hoarding the product. You can be sure that as the sun rises from the East and sets in the West, there will be hoarding and shortage of fuel because those who bought the product yesterday will not be willing to reduce its price by Kshs18 per litre when they expect to make another Kshs20 per litre next month. They will not revise their prices. We need to closely look at some of the decisions from the National Treasury because this kind of yo-yo is not good for the economy. It might be populist but certainly not sustainable. I support the regulation, but I wish the Departmental Committee on Finance and National Planning would revisit the VAT issue when we look at the tax laws. As you reduce VAT from 16 to 14 per cent, you are also loading agricultural products that are exempted from tax to pay the 14 per cent. There is a lot of mismatch. I hope that between now and the time we look at the tax laws, we will have looked at the totality of this thing. I beg to support.

Hon. Members, I want you to make this decision. Earlier on, a Motion was moved and the plan of the House Business Committee (HBC) was that the Second Sitting of the House starts at 4.00 p.m. and ends at 6.00 p.m., so that our staff can also beat the curfew. We are operating in that kind of environment. I know anybody would want to discuss hours on end, until the other week. But then, you have some other things, including those NG-CDF names that you have proposed. They have to be done in the next Sitting.

(Off-record)

Hon. Kaluma, I think it is good to also appreciate that we are in this kind of situation. Make your point of order. Is it a point of order; or it is the Mover to be called to reply?

To oppose.

Okay, it is to oppose. Proceed, Hon. Kaluma.

It is to oppose. They are just beating around the bush. His Excellency the President gave the direction that VAT be reduced from 16 per cent to 14 per cent. I thank him for it for the reason that he was dealing with the nation in the 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.

situation the Covid-19 pandemic has placed us in. If there is something which this pandemic has revealed to the entire world, more so to Kenya, is the levels of classification in our society. We have people in Kenya who can buy everything, we have people who can buy some things and we have people who cannot buy anything at all. The number of the last category, people who cannot buy anything at all, is increasing every day. People are losing employment. I am not an economist, but I also understand that the most reliable sources of income for any government are VAT, Income Tax and these other predictable ones. This pandemic is going to require our Government to use a lot of money and, therefore, to have a lot of money. How will we stabilise the health sector when this thing boomerangs as is predicted by the health specialists, if we are sending money away? We are in a partial lockdown as a country, but you already hear a lot of pressure from people who are saying “we cannot eat at all”. Reduction of VAT without corresponding price controls is never effective. Reduction of VAT in a situation where we leave pricing of goods to the forces of demand and supply out there is not effective. That being the case in our economy, I oppose. I know the President means well. I want to oppose, as a leader. I believe this is the reason this matter is remitted to us that we help the President and the Executive, as the leadership of the nation in this Assembly, think through how to pull our people out of this pandemic. I, therefore oppose, unlike cautioning like others. Instead of cautioning, just oppose. Let us reject this thing so that the people who have can purchase and give more to us to provide to those who cannot get at all. I thank you, Hon. Speaker.

What point of order do you have, Hon. Sabina Chege?

Thank you, Hon. Speaker. Mine was to request the Mover to reply. As I do that, I think this House is able to make decisions. If we feel that the decision that was made by the President was in good faith, but will not have any positive effect on the majority of Kenyans, why do all of us, in this House, not oppose and request that we look at the whole taxation? I am looking at the health workers of this country. We should be looking at how we can relieve them from other taxes so that we can motivate them. We can have the whole issue looked at fully so that we do something that can help Kenyans. Let us all oppose it, if we feel it is not important for this nation now. I request that the Mover replies.

Hon. Members, is it that it is so difficult to understand some of these things which I thought are so obvious? You are saying things which have already been provided for. Do you have a copy of the Order Paper? Am I the only one who has a copy of the Order Paper? Some of the things you are talking about are provided for in the Order Paper. Have you not been able to access it? The point of order from the Hon. Sabina Chege is that the Mover be called upon to reply. Can I test that?

Yes.

Mover, you have the Floor. 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.

Thank you, Hon. Speaker. In half a second, let me thank the House for the contributions which have been very useful. A lot has been said especially with regard to what exactly the National Treasury is doing. However, extraordinary times call for extraordinary measures. Once this pandemic is out of the way, we shall be able to reconsider each and every act that was done as a matter of urgency. In view of this, I beg to reply.

Very well. Hon. Members, given the challenges of the time and that some of our colleagues are in various holding areas and, when it comes to voting, it is the decision of every Member representing whatever constituency... So, it is desirable that every Member expresses himself by way of a vote. If all of you or a majority of you who are present in the Chamber now had your cards which I suspect is the case, it would make the exercise of voting very easy. It is because those who are in the holding areas can vote on this very fast. The alternative is having the name of each one of you called out to vote one way or the other. We will use the cards. You have the cards. Those of you who are here but do not have their cards, can come here and be counted from here.

(Off-record).

Hon. Kaluma, it is not yet. Very well. Is anybody calling for a Division? Can I put the Question?

Yes.

Next Order!

Hon. Speaker, I beg to move the following Motion: THAT, this House adopts the Report of the Committee on Delegated Legislation on its consideration of the Public Finance Management (COVID19 Emergency Response Fund) Regulations, 2020, laid on the Table of the House on Tuesday, April 14, 2020, and pursuant to the provisions of section 24(4) of the Public Finance Management Act, 2012 approves the Public Finance Management (COVID-19 Emergency Response Fund) Regulations, 2020, published as Legal Notice No.38 of 2020. Briefly, these regulations have been established by the Treasury to ensure that we have a fund set aside to combat the Covid-19 pandemic. From the outset, we must thank His Excellency the President and his Government for having taken a lead in this matter. We have been commended worldwide for what we have done to combat the pandemic. A number of measures have been put in place. I do not need to repeat them because they are very well known. They include keeping safe distance, wearing masks and ensuring that we do not have social gatherings. More importantly, Ksh10 billion has been set aside for the elderly, orphans and other vulnerable members of the society to ensure that there is cash transfer from the relevant Ministry to take care of these people. Funds appropriated by this 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.

House, grants, donations and whatever else that may come in, will have to go into the Fund to ensure accountability. The Committee sat and looked at these regulations. We have done a detailed report which has been published and is available. There was public participation. Several organisations, including the Kenya Law Reform Commission (KLRC), the Commission for Revenue Allocation (CRA) and ICPA-K, submitted their views. The views are reproduced in the Report. The Committee looked at those views. The National Treasury also looked at the views and provided a response. Having analysed those views and having taken into consideration the pandemic that the entire world faces and the need to have funds provided so that we are able to combat this pandemic, the Committee on Delegated Legislation was satisfied that the regulations meets the requirements of the law. Therefore, we urge the House to approve the same. Thanks to everyone again. Thank you Hon. Speaker, the Clerk, Members of Parliament and everyone who has participated. These are extraordinary times and we have to put in place extraordinary measures to ensure that the pandemic is fought and defeated. I beg to move and request the Member for special interest groups, Hon. Jennifer Shamalla to second.

Hon. Shamalla, you have the Floor.

Hon. Speaker, I rise to support the Motion. At this juncture, I, too, want to thank His Excellency the President of the Republic of Kenya, the Government of Kenya, all health workers, all volunteering people and organisations and, especially, nurses. I recognise nurses as being the frontline soldiers on this battle against Covid-19. The Report states more specifically, on page 4: “I wish to point out at this stage that the Committee on Delegated Legislation held a meeting immediately on 2nd April 2020 to consider the draft regulations and sent various concerns to the National Treasury for incorporation into the final draft before publication. Even though the Treasury responded to the Committee on the action taken regarding the concerns raised by the Committee, it is noteworthy that the regulations had already been published.” Most importantly, we must recognise that fundamental values and principles enshrined in our Constitution as well as laws must always be upheld. We must be reminded that all persons and institutions are subject and accountable to the law. With those few remarks, I second.

You have the Floor the Leader of the Majority Party.

Hon. Speaker, first, I want to thank the Committee.

Sorry. Just before you proceed, I want to inform the House that the next contributors will be Hon. Waluke and Hon. Mbogo from one of the holding rooms. 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.

Hon. Speaker, I will take very few minutes. First, I want to thank the Committee for a job well done. This shows that the only person who can set up a fund under the PFM Act is the CS for the National Treasury. This Fund has a committee led by the CEO of East African Breweries Limited (EABL). Let us speak very candidly. In this emergency, who needs support? The people who need water, healthcare and food on their table are the millions of Kenyans who, for example, walk to Industrial Area every morning and who now cannot access their jobs. Those people do not save. They live from hand to mouth. They leave Kibra, Mathare, Korogocho, Baba Dogo and many other slums and low-income settlements across the country to go and fetch for their daily basic needs. As this fund is being established and the kitty is being financed by the Government, the private sector, well-wishers and philanthropists, we want the Government to start serious food distribution to those settlements. That is where problems will be. As Hon. Kaluma said, for you to benefit from the VAT reduction, first you must have the money. You must have the economic power to buy something. This House must speak with authority on both the tax laws that we are going to deal with and the Supplementary Estimates. The Government must provide basic needs, including food and water to our brothers and sisters who live in the low-income settlements in all urban centres and rural areas. This Fund must be accountable. Every now and then, we establish funds. I remember we established a fund when an oil tanker killed many Kenyans in Sinai. If you ask the victims today, they will tell you they have not got anything. This Fund must be managed well. Major-General Badi must leave his office and go to all these slums. He must provide sanitisers and water. He must make sure that there is daily food ration from both the Fund and the Government, so that during the 21-day lockdown every parent in those low-income settlements has food on the table for his children. Hon. Speaker, we are able to go back to our homes and lock ourselves in. However, for the people who walk to industrial area, and I am sure they are listening to us, they do not know what their next meal will be. I beg to support.

On a point of order!

Hon. Gogo, the Floor is yours, but after Hon. Chachu, who is also seated in an unusual corner has raised his point of order.

Thank you, Hon. Speaker for giving me an opportunity to raise a point of order. In terms of procedure, did you propose the Question before you called Hon. Gogo to the Floor after the Motion was seconded by Hon. Duale?

Yes, I did. It was seconded by Hon. Shamallah. I proposed the Question. You know that can never escape me. Hon. Lilian Gogo, the Floor is yours.

Rangwe, ODM)

There is one more special interest: a very special interest. Hon. Denittah Ghati, the Floor is yours. There is a microphone where you are seated.

Hon. Speaker, thank you very much for this opportunity. Allow me to speak on behalf of the population that I represent in this country, the Persons with Disabilities (PWDs). I really want to thank the Committee for bringing this matter forward. I also thank the Government for this rare chance of bringing together a Covid-19 Emergency Fund that is going to look into vulnerable groups. Hon. Speaker, the over six million Kenyans with disabilities are really looking upon this Fund to feed and provide essential services for them. For a long time PWDs in this country have been neglected. The situation is the same even now as we face this crisis. The PWDs from Turkana to Isebania are not heard during this pandemic period. I am happy that the Government, for the first time, has good intentions for the PWDs who are otherwise neglected. It is a matter of accountability. At the end of the day, what our donors and partners want to see is how this Government is going to treat its most vulnerable populations. Every Kenyan in this country from Simbilei, Migori or Isebania where I come from wants to benefit from the Fund. Our people have sent us to voice their concerns. This Fund must benefit the diverse vulnerable populations of this country. I urge the committee that is going to run this Fund to ensure that everybody in the rural areas benefits. Even as we look at the issues concerning this Fund, it is important to note that there is an increase in the number of cases of violence against women. There is an increase in cases of neglected PWDs. These are things which need to be addressed. I really want to thank the President because already PWDs have a Fund that is going to look after them. Already, chiefs and other law enforcers at the grassroots are currently enumerating vulnerable persons in this country. Those are the people we must ensure benefit from this Fund. Allow me to support fully.

Hon. Mohamed Sheikh, the Member in a Muslim cap. Sorry, because of the mask you have worn, I am not able to identify you fully. The Floor is yours. 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.

I thank you, Hon. Speaker. The opportunity has just come to me. Maybe, God is saying something.

Your microphone is not working?

(Off-record) It is not.

Come in front then. They say, “If the mountain cannot go to Mohamed, Mohamed will walk to the mountain”. However, this Mohamed appears too heavy to walk to the mountain!

Thank you, Hon. Speaker for giving me this opportunity. I rise to support this Motion. It is one of the most important things we should do at this time when things are not normal. This Fund is coming a little bit late. This is because there is a lot of pressure in villages in the rural areas where the majority of people are not able to feed themselves. Most of them have lost their jobs. The pressure is already being felt. I know of communities that have started creating their own small funds to support the people around them. So, I stand to support the creation of this Fund and to request that it be fast-tracked because the problem is already with us. It should not be attached to a lot of bureaucratic issues. Its legislation should also not take a lot of time. While we are looking at the procedures and practices, let us fast-track the enactment of the Fund because it is what is going to save us during this time. Even those of us who are able to feed ourselves, if this Fund is not set up and money released to our neighborhoods which remain unfed, then we could be their next target. For the daily food they require, let us fast-track and pass this Fund. Let us fast-rack it and legislate it today. Thank you, Hon. Speaker.

Hon. Junet, you have the Floor.

Thank you, Hon. Speaker. This country has created many funds many times and those funds are normally not managed very well. I want to tell Members of the committee on that Fund that this is not like the El-Nino funds or the other funds which people were “eating”. If you eat this one, you will die of COVID-19. I can guarantee you that. Hon. Speaker, what has also shocked me is…

Just a minute, Hon. Junet. Hon. Thuku Kwenya, I am told, you are the one who was making noise out there. The House started at 2.30 p.m. Fifty minutes thereafter, you had not shown up and your seat was, therefore, given to somebody else. It could not be left vacant. So, please just go and sit in any of the holding areas. When we come again tomorrow, come at 2.30 p.m. He is from Kinangop. He is the Member for Kinangop, is he not?

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Please, there is no space. It is just that we could not allow a space to remain without an occupant and we did not know whether you were representing people in some other functions. So, please for now it is occupied. Very well, proceed.

Hon. Speaker, what has shocked me about this Fund is the way the corporates in this country who have been put in that committee are behaving. I checked in South Africa and found that they have created a fund similar to this. One organization only - one business organization - called Oppenheimer has contributed over R1 billion whereas in this country, the only corporate that has contributed, I am told is Cooperative Bank with Kshs100 million. The rest have not. How can you be milking people all year and declaring unimaginable profits, yet when the country needs you most… Where I come from they say you have a snake in your pocket and, when you put your hand inside the pocket to remove money, you will think the snake wants to bite you and so you cannot remove money. They must be condemned at the highest level. I do not want to mention names. The corporates of this country are known. My time was spent by Hon. Thuku. We cannot persuade them. It is a moral responsibility for corporate companies to contribute to this Fund.

Hon. Speaker, it is our responsibility as an oversight body to account for that money or to hold the committee of that fund accountable. The corporates must know that this is the time the country needs them most. There is no need for declaring profits of Kshs20 billion, Kshs30 billion, Kshs60 billion or Kshs100 billion. All that money comes from the sweat of Kenyans who are today suffering under the coronavirus. From tomorrow I want you… Aliko Dangote in Nigeria has contributed ₦ 1 billion to the Nigerian Fund. Safaricom have, at least, has given a lot of support through the 719 number where people call and then… For the corporates who are here, let us not reduce this thing to salary cuts. Somebody is asking me, “why have I not cut my salary?” If I give you Kshs30,000 from my salary, what is it going to help you with? So, the people who have been milking this country now for the last ten years…

What is your point of order, Hon. Kubai? Yours is a point of order?

Thank you Hon. Speaker. I rise under Standing Order No.95. Given the mood of the House and whatever is in store for us as we had already indicated, given the time we have and the time limits of curfew and other things, shall I be in order to request that you call upon the Mover to reply?

We had already given the Member for Mathira a chance. He has three… You know the Motion is the one that allows you to discuss most of these issues. It is only that you know many of you do not read the Order Paper properly. The Motion is the one that deals with every aspect of this pandemic. I know many of you have been contributing to that one, and that is the one which does not have a limit. This one about the Fund - and I agree with Hon. Junet - people cannot be making announcements of abnormal profits from a country where they cannot even have any form of corporate social responsibility. 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.

Proceed.

Thank you, Hon. Speaker. I rise to support the Motion for the formation of this Fund. We know some money has already been given to this Fund. We remember the Governor of Central Bank of Kenya (CBK) and, the people fighting corruption have given Kshs2 billion. The Governor has given Kshs7 billion yet nobody is talking about food for the people.

Which governor?

The Governor of Central Bank of Kenya. Nobody is talking about food for our people and we have a daily Press conference where the CS for Health is giving a very good update - and people are very happy - about how many people have died, how many are sick and how many have been tested. He has also been telling Kenyans to wash their hands, sanitize their hands, and not to leave their house. People are glued to the screen waiting for somebody to appear after CS Mutahi Kagwe is through with the information on people who are sick, who need to be tested and to wash their hands, to tell Kenyans when food is going to be given to them and in what format.

Hon. Speaker, there is no death that is less painful. We are protecting our people from dying from Coronavirus, but it will be absurd if we push them to die from hunger. Kenyans are very responsible people. They are very compliant and they have obeyed everything they have been told by the Government. People have stopped working. Those who were in the transport industry are at home. Those who are running bars are at home. People who were earning a living have no money, they do not have a shilling. We want the Chairperson of the Fund together with the CS responsible to appear every day alongside CS Mutahi Kagwe. When he finishes explaining about coronavirus and the measures that have been taken on that front, they should go to the most urgent item of how our people will be fed, how they will be given soap and how they are going to be assisted to get through. Hon. Speaker, you have noted masks have been made compulsory; mandatory. In fact, it attracts a fine and a sentence of six months, yet some people cannot buy them. You cannot criminalise what people are unable to do. We would like police vehicles to carry masks so that when the police find that you have no mask, instead of arresting you, they give you a mask. This will make the police a service and not a force. Therefore, as we support the formation of this Fund, we want to see the chairperson… I agree with Hon. Junet that let the East African Breweries Limited (EABL) start by announcing their donation. Since the chairperson in that Committee of the Fund is by the virtue of the organizations she represents, she should lead by example by announcing a couple of billions as a contribution to this Fund and then the rest of us can follow suit. Thank you, Hon. Speaker.

Of course, Members, I also draw your attention to one thing that, yes, the Fund may have been established, but remember if this House disapproves, then it will have to be disbanded. I think this is now the right opportunity for you to begin the oversight of the functioning of that Fund. So, our committee here, whichever committee, now has the opportunity to begin overseeing the Fund including checking on all those things that we are saying. We just do not want to be told that there are people sitting. Sitting doing what? We want to know all 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.

those things that you just said Hon. Gachagua. I think many of you have raised these issues. If you are able to approve this, then you now have the Fund under your grip by way of oversight. Yes, Hon. Ruweida. It is not Ruweida, it is another one. Hon. Mishi, I was aware that the Supplementary Estimates have been brought and they can only be tabled in the next sitting. It is now 5.00 p.m. We are going to adjourn at 6.00 p.m. for the staff to also travel back home. It is very difficult, Hon. Members. So, let me put the Question that the Mover be now called upon to reply.

The Mover has the Floor.

Hon. Speaker, I beg to reply.

Hon. Members, there was an indication that the Tax Laws (Amendment) Bill has been overtaken by events.

Hon. Members we have to adjourn now, the time being 5.00 p.m., and be back for the Second Sitting at 5.45 p.m.

The House rose at 5.00 p.m.

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