Order, hon. Members. We need to determine if we have a quorum.

I am informed that we have a quorum. So, we may commence the business.

Mr. Speaker, Sir, I beg to lay the following Paper on the Table of the House today, Wednesday, 26th February, 2014:- The Report of the Rules and Business Committee on review of the Standing Orders.

Sen. Mwazo. We are at Order No. 5. You need to table your report before you move the Motion.

Mr. Speaker, Sir, but I tabled the report in the morning.

Proceed, Sen. Mwakulegwa. REPORT OF THE ENERGY COMMITTEE ON VISIT TO BARINGO AND NAKURU COUNTIES The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate.

Mr. Speaker, Sir, I beg to lay the following Paper on the Table of the House:- The Report of the Standing Committee on Energy, Roads and Transportation on a visit made on 11th to 13th July, 2013 to the counties of Baringo and Nakuru.

Next Order.

Mr. Speaker, Sir, I beg to give notice of the following Motion:- THAT, the Senate adopts the report of the Rules and Business Committee on review of the Standing Orders laid on the Table of the Senate on Wednesday, 26th February, 2014.

Next Order.

Hon. Senators, Sen. (Prof.) Lonyangapuo had indicated that he will not be available this afternoon. So, this Motion has been deferred to next week.

Hon. Senators, let us now move on to the next Order. Chairperson, Committee on Energy, Roads and Transportation, you may proceed. The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate.

Mr. Speaker, Sir, I beg to move the following Motion:- THAT, this House adopts the Report of the Standing Committee on Energy, Roads and Transportation on the Familiarization Tour of the Geothermal Power Plants in Baringo and Nakuru Counties between 11th and 13th July, 2013, laid on the Table of the House on Wednesday, 26th February, 2014. Mr. Speaker, Sir, we visited the counties of Baringo and Nakuru for a familiarization tour. But before I talk about the familiarization tour, I just want to give an update on the issue of geothermal power.

On a point of order, Mr. Speaker, Sir.

What is it, Sen. Billow Kerrow?

Mr. Speaker, Sir, I would appreciate if the Mover of the Motion would allow us to have copies of this report. The Report we have is the same one which I thought was tabled in the last session. If there is another one, maybe we need to be given copies because there are no copies of this Report.

Mr. Deputy Speaker, Sir, the Report was made available in the morning. We have made arrangements on how copies can be made available. It is the Report which was tabled last year but it was not debated. Since it had lapsed, we had to do it again today.

Order, hon. Senators. Let me come to the assistance of the Vice-Chair. This is the Report that was tabled last year. Since business had lapsed, so we are re-introducing it. It is the same report, not a different one. The copies are available in Room 10.

On a point of order, Mr. Speaker, Sir.

What is it?

Mr. Speaker, Sir, I remember that report was debated. I personally and many other Members contributed to the Motion. So, in a report of the House where there is no requirement to vote on, if the Motion was debated and concluded--- I know it was debated and quite a few of us contributed on that Motion.

Mr. Speaker, Sir, the Motion was debated but it was not concluded. So, if the Members so wish to conclude, I can make my closing remarks.

No. If it was inconclusive, then there was no determination, so it died. Therefore, you have to move it afresh. If you felt you contributed last time, nobody is compelling you to contribute again. This is an opportunity for others if they did not have the opportunity. Let us proceed, Sen. Mwazo.

Thank you, Mr. Speaker, Sir, for coming to my assistance. As I was saying, the Committee went on a familiarization tour basically to update ourselves and motivate the Geothermal Development Corporation (GDC) and the The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate.

Who is seconding the Motion?

Sen. (Dr.) Machage.

Proceed, Sen. (Dr.) Machage.

Mr. Speaker, Sir, as I second this Motion, I would like to emphasis the importance of geothermal energy in Kenya. Indeed, as we take pride to be the only country in Africa to have developed this resource, we should also be cognizant of the fact that we have not fully exploited our potential. The geothermal potential areas in Kenya are mainly in three blocks; at the Coast, a lot of concentration of sites in the eastern side of the Great Rift Valley and also around Lake Victoria. There has been a lot of concentration on exploration on geothermal potential in the Great Rift Valley, completely forgetting the essence of spreading the process of exploration and exploitation to the flanks of this country. It is a known secret that power distribution and supply in most areas in this country is pathetic. We have lots The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate.

Mr. Speaker, Sir, from the outset, I want to start by supporting this Motion. But I have a small correction with the statement given by the Chairman that the report should have encompassed Turkana because Silale, if I need to be corrected on this, is in Turkana County. It is not in Baringo County. So, I think he might have covered three counties unless somebody wanted to put Silale under Baringo County to reduce the 77,000 square kilometres of Turkana County.

On a point of information, Mr. Speaker, Sir.

Sen. Munyes, do you wish to be informed by Sen. Leshore?

Yes, Mr. Speaker, Sir.

Mr. Speaker, Sir, I would like to inform my colleague that Silale is where the border of Turkana, Baringo and Samburu is. The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate.

Well, in that case, let us include Samburu also. This is a disputed area. This is a very good report and we need to support it. There is a big potential for geothermal energy in the whole of Rift Valley but in the past, we used to explore in some few areas. But with this kind of Report, the Government needs to expand exploration and exploitation of this resource. I know where I come from there is a lot of potential. When I talk of energy, we have the oil and gas industry which is being developed in Turkana County, the wind energy in Turkana and Marsabit counties and the northern part of Kenya. For us, as a country, to open up those areas, we need so much energy to enable entrepreneurs and that part of the world to brighten up. We need to encourage investors. An investor came to Turkana County the other day with a directive from the Cabinet Secretary. I only want to propose that the counties take charge of this process. This is land that is under the county governments. We need to be part of the adjudication of the sites and be part of the whole process so that communities’ benefit from the Corporate Social Responsibility (CSR) that comes with these investments should be clear. This is clean energy that is good for the country. We need to support wind energy in Marsabit County and exploration works in Turkana County. In Samburu County, of course, my friend would want more energy to enable this country to develop. With those remarks, I thank the Committee.

Sen. Mositet.

Mr. Speaker, Sir, thank you for allowing me to contribute to this Report. Let me say that there are many myths surrounding issues of energy. Like the way the earlier contributor said, the beauty of geothermal is that it is underground, considering the areas where GDC has been exploiting. They have not come out to tell us how much we expect from each region. There are other regions with potential and in other areas research is still being done. Despite that, I do support this report but I still feel that we really need to open up on the issue of energy. So far, it seems that the people who are in it are the “who is who” in this country. It is time we opened up on the issue of energy. Mr. Speaker, Sir, you will also find that the Ministry of Industrialization, which is the main consumer of power, is not connected to organizations like GDC and I think it is time we told them to consult so that whenever they talk of industrial growth in the country, they are not far. I would like also to talk about our training institutions. It is really sad to hear that many people who work in those firms do not have specialized skills because for them to get the skills, they can only get that special training in universities in Japan, Iceland and so on. We need to empower our universities and suggest that the departments of engineering and sciences should be upgraded and the universities given more funding to engage in more research. I also feel that there are some institutions in this country which were there before the GDC like KenGen. I believe that we have been funding KenGen but what we have been getting from that institution is not as much what the GDC has done. This is a young institution and I know what they have been doing and I can say they have been doing a The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate.

Mr. Speaker, Sir, from the outset, I would like to support the Motion. I had the opportunity to be among those Senators who visited those areas, not as a Member of that Committee but as a guest Senator because my county is one of those counties which will eventually benefit from the good work done by Dr. Simiyu with his team of very young and dedicated engineers. All of them were Kenyans and highly trained. As a team we really appreciated what they were doing in those areas. Mr. Speaker, Sir, I would like to support the GDC and urge the Government to give them enough funds so that they can exploit areas which were long forgotten. Baringo, Turkana and Samburu will become a silicon valley once geothermal is exploited. I learnt that when they dig these wells, by-products like water, gas and even gold are discovered. So, if they continue further north where my friend Munyes comes from, I can assure you that cattle rustling between Turkana, Pokot and Samburu will be things of the past. I would like all my colleagues in this House to support geothermal because it is the energy of the future. It is not going to attract a lot of environmental effects and I can assure you that if we support the GDC, we are going to have good infrastructure in our areas, enough water and enough development in our areas. I want to urge all my colleagues to support this Motion and also urge the Government to fast-track the funding of this project because it is our future. Thank you very much. The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate.

Mr. Speaker, Sir, I support this Motion and I would like to make a small observation. We know that energy is one of the biggest contributors to the development of this country. This Committee had the honourable task of not restricting itself to geothermal. As other Senators have said, there are many other areas that they should have included in their study especially on the issue of energy in this country. As Sen. Munyes said, we are told that there is huge potential for wind and solar energy in Marsabit District and this can solve the problems of the citizens there. As a nation, we are lucky that we have a lot of sun. I was in Japan and I was amazed to travel on a-300 kilometre road at night but it was being lit by solar energy tapped during the day. Similarly, this can be done in Kenya; we can save a lot of money that we normally use to buy oil in order to get energy. Mr. Speaker, Sir, we have also been told that coal has been discovered in Kitui and the Committee should have asked how that could be exploited faster so that it can also help our people access affordable energy. Similarly gas energy is quite plenty in this country. There is also a lot of energy in Lamu and part of Ijara, where I used to represent, and I am sure the same applies to many parts of North Eastern Province and some other parts of Rift Valley. So, these areas needed to be studied and some form of documentation prepared. I also want to differ with my brother, Sen. Munyes, that Cabinet Secretaries are responsible for seeking investors from all over the world. Their responsibilities should be to get those investors and coordinate with the county governments so that they can provide land and other services that may be required in order to enhance the quality of life for the people. Thank you very much.

Mr. Deputy Speaker, Sir, let me, first, start by saying that I support the Motion to adopt the Report. Secondly, I commend the Committee. Going by the brief presentation by the Chairman – the Acting Chairman has been moving the Motion – it is very educative and encouraging to note that a Committee of the Senate has gone into the geothermal industry and come up with very pertinent information and some data which has reached the Senate first hand rather through the press. It is also very encouraging to hear from the Chairman’s Report that we have as many as 50 engineers trained in that sector. We have had in this country situations where we train people and when we want to train some more, we send them abroad. Fifty years down the line, we still have no experts in anything on the basis that when we want something substantive done, we still have to go abroad. This is very encouraging and we hope that the people charged with the responsibility of running our geothermal industry will develop the necessary expertise so that other countries, more so in our region, can come to learn from our engineers. Having said that, I would like to suggest or encourage the Committee to do more. They went to look at the geothermal power production. However, we have many other sectors. These could be in their schedules but we have other energy sources like wind. I presume that we have only done so much. It would be good if the Energy, Roads and Transportation Committee can do this on behalf of the Senate so that we have first hand information on where we are in energy production. The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate.

Thank you, Mr. Speaker, Sir. I apologise that I came in after the Mover had moved the Motion. However, I managed to read the Report. I concur with my colleagues that this is a very informative Report. However, I have a few issues to raise with the Report. One, the Report gives a good description of what the Geothermal Development Company (GDC) is doing and also points out a few problems faced by the GDC which is commendable. They have also made several recommendations on what should be done. I would have been very happy to see in the Report, discussions between the Committee and the GDC on why certain things happened the way they did. Why has the Government not invested in the GDC? The resource necessary to attract investments - almost in every site of sinking wells for geothermal, the statement recurs every now and again – that this could not be done because so much money that is needed for investment has not been advanced. Obviously, when the GDC was being set up as a state company with the express task of developing geothermal, the state should have known that it costs something to develop it. Secondly, it is pennywise and pound foolish to pay manpower in the GDC and not give them tools to do their work. Once they have tools to do their work, you will have set up the infrastructure in the various sites that geothermal will have been identified. Taking our Senators there and saying that they have identified Suswa, and Menengai and that after all these years you have not found money to build the infrastructure, there must be some reasons. Does the Government require time probably two, three, four or five years during which to do the infrastructure? If so, the Senate Committee should be told that if this money is not forthcoming for investments, during a particular period, it will come so that it makes sense for geothermal generation. Secondly, this is referred to, now and again and so much is needed to attract donor investments. The word “donor” means that you give money and you do not expect anything in return. I think in the business of geothermal, we do not have crystal donors but crystal investors. Geothermal is a very attractive investment as long as the Government undertakes its counterpart responsibility; first because there is a ready market. The Kenya Power and Lighting Company and the Kenya Pipeline Corporation have already said that once the energy is available, they will buy it. I am glad that energy generation, transmission and sale, all those three aspects of energy have been carefully demarcated in our system. We have the bit that generates, the bit that transmits and the bit that undertakes the transmission. The Report also says, very sincerely--- I must commend them because energy consumption in this country is very taxing, both to consumers and to the investors to the extent that since energy costs so much we do not provide a good incentive for investors to come to Kenya. Other than come here to invest, they could have gone to Botswana or The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate.

Thank you, Mr. Speaker, Sir, for giving me the opportunity to contribute to this Motion. Mr. Speaker, Sir, from the outset, I want to say that I had the privilege of serving in the Ministry of Energy for two years and I am also in the Committee on Energy, Roads and Transportation. So, I happened to have been part of the team that travelled to Menengai, Olkaria and Silale. I also happened to have been there, under the leadership of Sen. Kiraitu, when the GDC was formed. It is good to note that what some of my colleagues are saying are facts which need to be pointed out. The reason for the creation of GDC was to cushion the government in terms of the investment, because the The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate.

What is it, Professor?

Mr. Speaker, Sir, would I be in order to congratulate the former Assistant Minister for Energy for having given very good information to the House?

Order! You are completely out of order!

In any case, I thought you were going to challenge him when he was contradicting you in terms of the Board; he said that the Board is intact because the Chief Executive Officer (CEO) is still there, but the Chairman is gone. But you know the Managing Director (MD) is there by virtue of the position; he is just but a secretary! But that is fodder for another day. Let us proceed.

Thank you, Mr. Speaker, Sir. I was worried; last week I stood up 20 times, but I did not “capture your eye”. So, thank you today for noticing me. Mr. Speaker, Sir, I stand to support the Motion on the debate---

Order! Order, Sen. Chelule! You know the rules; you know you must catch the Speaker’s eye. So, you may wish to change positions.

Mr. Speaker, Sir, I stand to support this Motion First, I must congratulate the Committee Members for going round our country, visiting various sites and coming up with a very good report. In this report, for the short time I have gone through it, I have found out that they have known the challenges that we are facing as a country. We are now talking about the Uwezo Fund that should benefit the women and The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate.

Sen. Godliver Nanjira Omondi.

Thank you, Mr. Speaker, Sir. Today, I am so happy that you are able to call out all my three names. Thank you so much, Mr. Speaker, Sir, for giving me this opportunity to contribute towards this very important Motion; and I want to support it because for sure Kenyans are incurring a lot of expenses when it comes to power, especially for the rural schools. Most rural schools are not able to carry out their lessons during odd hours, like the evening lessons, simply because they do not have electricity. I think if this Report is adopted, it is going to be the turning point where power generation is going to reach out to local people, and it is going to help even parents who have their children in learning institutions in local or rural areas. Mr. Speaker, Sir, I want to support this Motion because when it comes to the bills which Kenyans are paying, especially the common Kenyan citizen who may not be in employment, and they must use electricity for their day to day activities or for their domestic use, I think they are not able to make it because of the expenses and the bills that are too high. Mr. Speaker, Sir, getting electricity in homes is somehow expensive, and I think it is because of the logistics that are attached to it that makes it impossible for Kenyans to afford electricity in their homes. This leads to a lot of deforestation, simply because many Kenyans are using charcoal and firewood. I think if this Report is adopted and the implementers make use of it, it is going to help the larger population of Kenya to have power even at the lowest levels of the living standards, and this is going to reduce the high cost of fuel and reduce deforestation, which will lead to improved living standard for Kenyan people. That way, we are going to give ourselves credit because they will remember that under the Constitution and under Devolution, their living standards changed simply because we did something commendable that changed their lives. With those few remarks, Mr. Speaker, Sir, I beg to support this Motion.

Sen. Elachi.

Thank you, Mr. Speaker, Sir. I also rise to support this Motion on the Report. For many years in our country, we would say that God has really blessed us. But one of the challenges we always face is; when we bring in our own personal interest, then we find that we prolong most of the blessings that we are given until they become curses. But I want to thank the Standing Committee on Energy, Roads and Transportation that is now trying to follow up and look at these resources that God has given us. The The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate.

Mr. Deputy Speaker, Sir, I beg to support this Motion and as I do that, I wish to register my complaint to the Members of the Committee because what we are now starting to walk on as a Senate, we are now walking on the road for the Senate that Kenyans want, a Senate that will just go beyond just talking about the issue of division of revenue and how we share out the wealth of the nation. Kenyans would like to see a Senate that is debating the possibilities and ways of expanding the common wealth of the Republic of Kenya. Indeed, the Report of the Committee has given us exactly that. We are now thinking in the direction of making electricity cheaper by exploiting other sources of energy and in fact, going to the extent of exporting that energy. Mr. Deputy Speaker, Sir, on a Motion like this, one cannot help but condemn the high cost of electricity. It is so high and that is why there is need for the National Assembly to appropriate more funds to go towards research in our teaching and research institutions like the universities so that alternative sources of energy are discovered and explored. That would be money spent in the right direction. I have in mind geothermal energy, solar energy and power alcohol or ethanol. These are areas of research where if we fund our universities sufficiently, then you will find that places that produce sugar cane like Kakamega, Kisumu and Bungoma counties will then end up being the net producers of power alcohol that will go a long way in powering our motor vehicles with the resultant effects that we will be spending less money in running our transport system. Mr. Deputy Speaker, Sir, as I thank the Members of this Committee, I also want to thank God. God was so kind to us that he made Africa the richest continent in terms of mineral resource in the whole world. There is no other continent in the world that competes with Africa but it is so sad that having been so well resourced with minerals, leaders of the African nation have used this great wealth of our continent in negotiating for contracts that benefit them and their families as individuals. Most of the African members of OPEC are some of the poorest countries in the world. If you go to countries in West Africa which produce oil, the people have nothing to show for the oil that has been there for years. Mr. Deputy Speaker, Sir, this Senate would be interested to know that time has now come when we should refuse that Kenya does not walk the same route that other African states have walked because the best that this country will get is 5 per cent. They get 5 per cent in form of royalties and the various incentives that the multinational oil exploration companies offer. This means that if one barrel of crude oil costs US$100, at the end of day the African countries, on one barrel, will make only US$5 while the multinationals make US$95. I was reading around and I wonder if you had an opportunity to look at the letters, it is a sad account. It is an analytical journalism of how the so-called rich countries will The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate.

Thank you Mr. Deputy Speaker, Sir for giving me this opportunity to make some contributions to this Report. First, I want to thank Members of this Committee for the Report they have laid in the House which gives us a hands-on feeling of what they experienced when they went out to assess the Geothermal Development Company (GDC) programmes. I want to come nearer home and closer to the people who will be affected by these programmes. I have seen some recommendations that were made by the Committee with regard to counties where GDC programmes have been going on or where the wells are found. I want to bring to the attention of this House issues about the conflict between the locals and the GDC or the institutions that will implement this programme. In the very beginning, they appeared to be very simple. However, the conflict with the locals is, perhaps, the genesis of what eventually boomerangs or grows into a major conflict for the benefit of these resources. These programmes are being established in areas where there are people living. It is important that we pay attention to the population that may not have a big voice at the beginning but who stay and are localised in the area where the commodities are found. It is important that we pay attention to these people from the very beginning. Displacement should not be one of the things to happen as these institutions are being set up, especially the geothermal power plants. If this happens in areas that have settlements, it is important that the people there are treated and moved in a civilized manner so that they do not develop bitterness to these very worthwhile developments that are being carried on. It is, therefore, very important that the benefits that accrue from the programmes touch these people from the very onset. In this regard, I am looking at things that have been mentioned by my colleague, Sen. Khalwale, about the carbon benefits. These are benefits that we do not have to wait for long to realise. These are benefits that accrue almost immediately. It is important that we get to know the qualities and quantities of the benefits that accrue from carbon. It is important that we have personnel in this country that have the capacity to audit carbon credits. We have a lot of auditors in this country who can audit cash and other things. However, auditing carbon is a very specialized area that this country may need to produce individuals that can audit this new commodity. Auditing of oil, as well, for us to know how many barrels we have exported in this country is also a tricky area. We do not have, in this country, people who can audit oil. We should not assume that the oil will come from the ground clean. It comes with tonnes of sand, water and every other thing. It is important for us to know that people who are helping us man the petroleum know how many barrels they have got from the ground after they have the percentages of water, sand and the other things. It is important that The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate.

Thank you, Mr. Deputy Speaker, Sir, for giving me time to make a few comments on this Report. I start by commending the membership of the Committee. If you look at the membership, you will appreciate the cream of leadership that this Senate holds. The Chairman is Sen. Gideon son of Daniel. We have Sen. Dan Mwazo Mwakulegwa, a former Minister; Sen. David Musila, a former Assistant Minister; Sen. Kiraitu Murungi, a former Minister for Energy; Sen. Chris Obure, a former Minister for Finance, Foreign Affairs and for Roads; Sen. Abu Chiaba who is also a former Assistant Minister; Sen. Kajwang who is also a former Minister; and, Sen. Keter who is a former Assistant Minister. Probably, Sen. Wangare is the only one with lesser credentials in terms of who is who in Government. However, she is a very distinguished Senator in her own rights. With Committees as high powered as this, you have little doubt of getting a Report as good as this. The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate.

On a point of order, Mr. Deputy Speaker, Sir. Is it really in order for the Senate Minority Leader, who we really respect, to stand here and mislead both this House and Kenyans that the Maasais who are being displaced by the geothermal plants in Olkaria are not being compensated? They are, in fact, being compensated in accordance with the settlement arrangement and programme developed with the assistance of the World Bank. So, compensation is there, full and adequate.

Mr. Deputy Speaker, Sir, show me any country that has got justice from the World Bank and I will give you a reward.

There are two issues here, Sen. Wetangula. The point of order raised by Sen. Murungi is important. I would like you to respond to it.

Mr. Deputy Speaker, Sir, when a responsible Government purports to compensate its nationals by taking away their resources; one, you have to evaluate the net value of the resource. That has not been done. Secondly, when you uproot people from their natural habitat, it is not enough to herd them into groups and give them money, when they do not even have a culture and history of handling money. You organize and get them alternative settlement, commensurate, equal to or even better than where you are uprooting them. Help them The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate.

I think we need to finalize this issue. With a lot of respect to you, Sen. Wetangula, you said – I heard you clearly – that the indigenes of that area have been moved out of that area without compensation. You did not talk about adequate compensation. That is the issue that Sen. Murungi raised. This is an important issue, because when you say that people have not been compensated for their land which is being exploited by the Government for the national good, that goes to the national good itself. So, I would like to understand whether, indeed, it is a situation that you can stand up to; that they have been moved away without compensation. Then, Sen. Murungi can tell us on what basis he has raised that point of order. I would like us to be very clear because these are matters of national importance.

Mr. Deputy Speaker, Sir, probably you were consulting with the Clerk next to you and did not hear me.

I heard you very clearly.

Mr. Deputy Speaker, Sir, I conceded to Sen. Murungi that there may have been compensation, but went on to describe the history of compensations in this country; how they are designed, executed and wananchi are routinely cheated. Money is set aside sometimes and it never even gets to those who are supposed to receive it. A chief, District Officer or District Commissioner receives it. Sometimes those who receive it get so little that it makes little meaning as to what the compensation is all about. Let me go to my next point.

On a point of order, Mr. Deputy Speaker, Sir.

I want to assume that Sen. Murungi is satisfied that he has been adequately answered, since he is comfortable. In the meantime, can I hear you, Sen. (Dr.) Khalwale?

Mr. Deputy Speaker, Sir, I want to agree with you that this is a very important national issue. It reminds us that, at least, as far as Olkaria is concerned, when this process was going on, Sen. Murungi was actually the Minister in charge. Could I request that we stop the hour clock for a few minutes and allow the former Minister ---?

What is your point of order, Sen. Khalwale?

Mr. Deputy Speaker, Sir, I am pleading with the Chair to consider settling this matter once and for all, because we have the resource person here and it is a very serious national issue. The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate.

As far as I am concerned, a lot would depend on whether or not Sen. Murungi is satisfied that the point of order that he raised has been adequately dealt with by Sen. Wetangula. If it has been, it is not in my place or your place, Sen. (Dr.) Khalwale, to pursue the matter any further since it was not your point of order.

Mr. Deputy Speaker, Sir, I just challenged one simple point; where the Senate Minority Leader said that the Maasai community was not compensated in the Olkaria area. He conceded that they were compensated and went on to other generalities. I am not interested in the other generalities, but the Maasai community in Olkaria was compensated in accordance with a resettlement programme developed jointly between the Government of Kenya and the World Bank.

On a point of order, Mr. Deputy Speaker, Sir. Sen. Wetangula has made a very serious allegation; that compensations are paid through administrators, particularly chiefs and District Officers. Can he substantiate? I was a District Commissioner and a Provincial Commissioner, and I do not recall at any time when any compensation came directly through us and not to the beneficiaries.

Mr. Deputy Speaker, Sir, I hope we are not turning this very important debate into a debate on compensations. But---

But you are the one who raised it, Sen. Wetangula! You must take responsibility for your actions.

Which I do.

If you refer to Standing Order No.92, you must be able to stand with every statement that you make.

Yes.

Now, I am happy that according to Sen. Murungi, you withdrew or, at least---

I conceded.

Yes, you conceded that they were compensated. If you did, then we can proceed on that basis.

Yes.

I think there is an important issue which you must take responsibility for, because you are the one who raised it. Can you answer to Sen. Yusuf Haji?

Mr. Deputy Speaker, Sir, there is a book called The Trouble with Nigeria, where Chinua Achebe said he had recently read in the newspaper that President Shehu Shagari had said that corruption in Nigeria had not reached alarming proportions. He said that “anybody who says a statement like this is either a fool, a crook, or does not live in Nigeria.” Then, he said: “I know Shehu Shagari; for sure he is not a fool; and I know he is not a crook; therefore, he does not live in Nigeria!” I know Sen. Yusuf Haji is not a fool, he is not a crook; he does not live in Kenya! Mr. Deputy Speaker, Sir, you can take judicial notice of how many public administrators have gone to jail for stealing money meant for the poor. It is common knowledge. The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate.

On a point of order, Mr. Deputy Speaker, Sir.

Order, Sen. Yusuf Haji! Sen. Wetangula, you know I am following this debate very keenly. I am not going to allow us to derail from the issue at hand. Sen. Haji has not spoken about “crookish” administrators. What he said is that he does not recall, to his knowledge, that any money for compensation was paid through the provincial administration. That is what he said, if I got him correctly.

Absolutely, Mr. Deputy Speaker, Sir. Sen. Wetangula should not beat about the bush; we are not in Nigeria, we are talking about Kenya and administrators in Kenya. He should give us documentary evidence of any administrator who has been jailed. I cannot say all the lawyers are crooks and neither can I say that there are lawyers who have been to--- I do not have to go into those issues, but I want us to defend those who cannot defend themselves in the House. He should either withdraw or produce evidence and I will go along with it.

Mr. Deputy Speaker, Sir, Standing Orders allow me to substantiate the matter at a later time. I can bring here damning reports about compensations in the Mau Forest; how much money was swindled away by the administration. This is common knowledge. The Standing Orders allow me to bring substantiation at a later time, and I can bring it if my good brother, my very close friend and the Chairman of my Committee wishes me to do so.

On a point of information, Mr. Deputy Speaker, Sir.

Please, inform me.

Mr. Deputy Speaker, Sir, in earlier Parliaments, the report by Ndung’u of the so-called Ndung’u Land Commission was tabled and, therefore, it is a record of this House. For that reason, Sen. Wetangula does not have to substantiate beyond it because in that Report, there are indications of former provincial commissioners and district commissioners who grabbed public land and displaced people, including in Banita Settlement Scheme in Nakuru, where I led a Committee of Inquiry in which I was the Chairman during the last Parliament. We found that former members of the Provincial Commission had actually grabbed public land and unsettled a lot of people who are currently squatters in Banita. By the way, Sen. Haji was once upon a time the Provincial Commissioner for Rift Valley.

He should declare his interest! Mr. Deputy Speaker, Sir, may I go on?

On a point of order, Mr. Deputy Speaker, Sir.

Now, this issue must come to a close. When a point of order is raised and particularly a substantive one like this one, I expect it to get a proper answer. So, Sen. Yusuf Haji, you have heard what Sen. Wetangula has had to say and I want to assume that you are satisfied.

Mr. Deputy Speaker, Sir, I have no interest to declare at all in this matter. What I am doing is what is expected of any leader; you defend those who cannot defend themselves here. Thank you.

Thank you, Sen. Haji. The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate.

Mr. Deputy Speaker, Sir, the chips will lie where they fell. Let me go on. Mr. Deputy Speaker, Sir---

I am not going to allow unsubstantiated claims to be made. I mean, just because the people have raised issues. I hope you do not force me to invoke the provisions of Standing Order No.92 at the request of a Member. Please, proceed.

Mr. Deputy Speaker, Sir, I will proceed and I want to hope that I am not debating the Chair. Mr. Deputy Speaker, Sir, this Senate must help county governments. I go around the country---

Mr. Deputy Speaker, Sir, I can see Sen. G.G. Kariuki’s microphone is on. Mr. Deputy Speaker, Sir, I go around the country and everywhere I go, the Members of County Assemblies (MCAs) and their Speakers are asking “how can the Senate help us craft legislation?”

On a point of order, Mr. Deputy Speaker, Sir.

What is out of order, Sen. G.G. Kariuki?

I am sorry, Mr. Deputy Speaker, Sir. Maybe I am too slow in understanding the decisions when they are taken. How has the Chair decided on a very serious matter that has been raised by Sen. Wetangula? How have we ended this matter, because my understanding was that he was not able to substantiate the allegation which was challenged by Sen. Haji? Could he substantiate or withdraw?

Sen. G.G. Kariuki, I am with you on that issue but you heard me asking Sen. Haji whether he was satisfied and he did not appear like he wished to pursue that issue any more because Sen. Wetangula had said that he is ready, willing and able to substantiate, but that matter was not pursued. I do not think it is in my place to stress on the issue. Sen. Yusuf Haji quite clearly appeared like he was not willing to pursue the issue. I think I am right, Sen. Haji.

Yes, Mr. Deputy Speaker, Sir.

Sen. Wetangula, Sen. Haji is here, he should be able to answer for himself.

Mr. Deputy Speaker, Sir, as I said, I think my friend is beating about the bush and I allowed him to beat about the bush.

Thank you.

Mr. Deputy Speaker, Sir, this Senate is not a funeral gathering; we must have light moments. I wish hon. Martin Shikuku – God rest his soul in eternal peace – was here; he would bring tremendous humor to the House and people would laugh and laugh, and debate became very interesting. If we become straight jacketed, we will make this Senate one of the most The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate.

Sen. Murungi.

Mr. Deputy Speaker, Sir, I rise to support this Motion and the Report. I am a Member of the Committee and I want to commend our able Chairman, Sen. Moi, and his able Deputy Chairman, Sen. Mwakulegwa. Indeed, as Sen. Wetangula has pointed out, this is a very hard working Committee and there is a lot of comradeship within the Committee. We are very supportive of the agenda of this Committee. I am privileged to have served as the Minister for Energy for seven years and I am happy to report that during my tenure as the Minister for Energy, we were able to bring some changes in the energy sector including creating the Geothermal Development Company (GDC). This was not the only change we brought. We also created the Rural Electrification Authority (REA), which has been able to take electricity to very remote areas of this country. It is also during our time that we discovered coal in Kitui, It is also during our time that oil was discovered in Turkana and Maya in the Indian Ocean. Although we are not there to complete the process, at least, we were there at the beginning. Mr. Deputy Speaker, Sir, they say Africa is a dark continent. When it comes to the coverage of electricity we are a dark continent in the sense that only about 29 per cent of Kenya is covered with modern energy services. About 70 per cent of Kenyans are still using firewood, cow dung and crop waste as primary sources of energy. Even in areas where we have electricity coverage, Kenyans are only using electricity for lighting especially in the rural areas. When it comes to cooking, we come back to firewood and crop waste which causes damage to the environment. I think it will be good for us to keep promoting consumption of electricity especially for cooking in the rural areas so that demand for electricity is huge. We have only scratched the surface. Therefore, there is need for us to expand our generating capacity. Mr. Deputy Speaker, Sir, Kenya like other African countries has been suffering from chronic shortage of power. We are simply not generating enough electricity and I would say that we are that hungry person that we were talking about the other day, who does not mind what food you bring, if you give him githeri, ugali or nyama, he will eat. Even there is someone who has opened a butchery for donkey meat in Naivasha. For us, we are energy hungry and we are energy poor. So, we need energy from all sources that can we nurture in this country. The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate.

Thank you Mr. Deputy Speaker, Sir, for giving me this chance to contribute to this very important Motion and the Report by the Committee on Energy, Roads and Transportation. I first want to take time to congratulate them because they have done a good job. They should continue doing the same in future. The Committee has done this Report, it has been tabled and we are now discussing it for adoption. We want other committees to do the same so that we are informed of what is happening. I hope that this will be an eye opener to many other Standing Committees which are yet to present such reports in the Senate. I am interested in knowing why some parts of the world are richer than others. I happen to have been a teacher and I know what that means. In Germany, the richest industrial region is called Ruhr Region. This area is rich due to availability of coal. There is also the presence of iron ore in quite large deposits from Lorraine in France transported by a very able river called Creuse. Getting to Japan, the richest industrial region is in Tokyo around Kyoto, Nagasaki and Hiroshima. That is the richest in the world. The reason is not because of coal and not because of any other thing but because of skilled manpower which is yet to be tapped in Kenya. In America, the same has happened in the Pennsylvania region called the Midwest. The Midwest is the second richest after Arch of Lark and the main reason is coal and water power in the facility. We have many other examples. However, for the purpose of Kenya, we have quite a number of minerals that have been discovered. Others are in the process of being discovered as we look for more to export. What is amazing is that as much as we have countries that are rich, there are reasons that make them rich. One of the reasons is that they have utilized their main factors of production to the full. These are land, people for their skilled labour, capital, fuel and energy. We are now discussing energy as it is stipulated very well in the Report by the Committee. With energy and Kenyans’ presence, you will find that this is available in various places that are recorded here. You will realize that these have not been tapped so that we use the fuel for the purpose of industrial location and relocation. That means that we cannot use the fuel as a factor. The reason is that the cost of production has been very high. So, you will find that we do not have very many sources of energy that have been exploited just because of the high costs. There is also lack of infrastructure. It is very difficult to find some of these areas. We need to think about infrastructure as we support this Motion. We need to think about manpower. We have the only celebrated engineer in Kenya, Eng. Simiyu. This is just like in the United Arab Emirates (UAE) where when they talk about fuel production, you find one George Best there. The rest of the skilled manpower is from America. I am quoting

of 1970. This can happen and can also affect Kenya as an oil and fuel producing country. So, coming to geothermal, the production of this can be very good and can be increased. Its uses are also varied. Getting to geothermal and where it is generated, there is Olkaria and Hells Gate. There are also other areas like Eburu Hills where pyrethrum is grown. Geothermal power is used locally to dry pyrethrum so that it is sold as pyrethrin to earn The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate.

Thank you, Mr. Deputy Speaker, Sir, for giving me this opportunity to also add my voice to this very important Report. I rise to support the Report. From the outset, let me congratulate the Mover of this Motion, Sen. Mwakulegwa, together with all the Members of this Committee, led by the able Chairman, the Senator for Baringo, Sen. Gideon Moi. One of the reasons I am supporting this Motion is that I want to support their recommendation that the Government, indeed, needs to adequately fund the geothermal exploration in this country because this will reduce our energy costs in this country. Kenya is very fortunate, as they have told us in their Report, to see that there are close to 20 geothermal sites that need to be explored. However, I am very much concerned to note that the national Government has not been able to provide adequate funds, particularly in Menengai, Suswa, Bogoria and Silale regions. Because of this lack of enough commitment on their part of matching funds, the donors have not been able to unlock their commitments. This is of great concern. I, therefore, join the Committee in urging that the national Government, indeed, should take geothermal power generation seriously because, as we know, this is actually going to be the energy of the new century. Very soon, we will reduce our dependency on oil usage. I beg to support this Motion.

Mr. Deputy Speaker, Sir, thank you very much for giving me this opportunity to contribute. I wish to support this Motion. I also thank the Committee for a job well done. I have seen the Report and it is very thorough. The reason I support it is because Kenya is not doing so well as concerns the generation of power or electricity. I believe that, that is why we call ourselves a Third World country. Kenya used to rely heavily on agriculture, but naturally agriculture is not doing so well. We have seen areas like the neighbouring Kiambu County where we used to pass and find coffee plantations. Most of them have been replaced with buildings. We have also seen farmers uprooting tea bushes because they are no longer doing well. Mr. Deputy Speaker, Sir, I support this Motion because this is a plan “B” to the people of Kenya. Once there is power generated at a low cost, availability of electricity even within the rural areas, where it is also dearly needed, will mean that there will be improved ways of cultivating agriculture generally and utilizing the geothermal resources, as is clearly indicated in this Report. That means creation of wealth amongst others. It also means capacity building for the local people. They will come up with more resources within the society and learn new ways of doing things. As my colleague, Sen. The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate.

Mr. Deputy Speaker, Sir, thank you for giving me this opportunity to also add a few remarks in support of this Motion as tabled by the Vice Chair of the Committee. The Report indicates that we are coming of age in line with the Vision 2030, if the new thinking can be that we do not shelve very good documents as in the past. Since Independence, most well thought and researched documents like this one are in the shelves and some have been forgotten. If in the new order, in the new political dispensation, we can implement such findings, we will be in order and catch up with the Vision 2030. Mr. Deputy Speaker, Sir, having looked at the Report, I have a few reservations. For instance, the environmental impact assessment is ongoing. I would recommend that the Committee makes a follow up on this issue and the social relations with the people in these areas. Further, I also urge the relevant committees, especially the Committee on Education, Information and Communication, to sell this idea to our universities. We are told that we have around 50 expert professionals in this career who are working. We have seen our universities embark on very expansionist policies and curricula. I urge the relevant committees to also pass this to the Government of the day, so that our universities, especially those that are established, like the University of Nairobi, Jomo Kenyatta University of Agriculture and Technology and Kenyatta University, expand and nurture our local talents in this field, so that we can have enough manpower as and when it is required. Mr. Deputy Speaker, Sir, lastly, I also urge the Sarah Serem Commission, which is working very hard and talking about salaries, wage bills, et cetera, to look at some of these professionals. We need these professionals to be well paid so that they can be attracted to serve the nation. You will find that some of our professors in different fields earn peanuts. This is so sad. But with the new order and the Senate having taken its mandate, I believe that we will engage the relevant authorities and capture some of these talents to work for our country. I beg to support.

Thank you, Mr. Deputy Speaker, Sir. I rise to support this Motion and Report on this very important energy resource. Kenya has never had enough power to run its economy. From the look of things, it appears that we may not in the very near future have enough power. Initially, we have depended on hydroelectric power which has served us very well so far. I know that we have moved into other sources of energy, like The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate.

Is there any other Member willing to contribute? If there is no other Member, the Mover can reply.

Thank you, Mr. Deputy Speaker, Sir. First and foremost, let me take this opportunity to thank all contributors who have supported this Report. It has generated good discussions. From the contributions, there are new ideas which have been suggested for improvement of the sector or the industry. We will take in all you have contributed and we shall share it with the Ministry of Energy and the Geothermal Development Corporation (GDC). Mr. Deputy Speaker, Sir, while we know that energy will accelerate development of this country and will also attract investors to come to this country, we have heard from the contributors that out of ten investors coming to the region, eight are going elsewhere. When we make energy available, I am sure that due to our improved infrastructure, Kenya and particularly, Nairobi will be the hub in the region. Therefore, the only element which is lacking for us to truly attract investors is the availability of energy. The Government has promised that in the next 40 months, we will be able to generate 5,000 megawatts. Already from last year to this year, we have 400 megawatts already connected to the national grid; and in the next six months, we shall have another 400 megawatts connected to the national grid. Mr. Deputy Speaker, Sir, it is also important for Senators to know that that is the reason why we are encouraging different energy product needs. From hydro, we are talking about coal. The Committee on Energy, Roads and Infrastructure has visited Kitui coal mining area. We have also had discussions and helped the Ministry to solve the impasse which was there. As we speak, the agreement has been signed between the company and the community and, therefore, we are going to have coal. We will also be fast tracking gas, solar and wind. We should also not close our eyes to nuclear energy. After we have developed all this, in the next 20 years after we have achieved our Vision 2030, then the next energy source will be nuclear energy. We have heard and we have seen many countries – I had an opportunity to go to Korea and I visited a nuclear plant – very close to the nuclear plant, where we found residential areas there and the people are comfortable. The Koreans have embraced the nuclear energy. Therefore, what the Government is doing is to encourage different product mix in the energy sector. Mr. Deputy Speaker, Sir, in terms of funding, what the Government of Kenya was being requested by GDC to contribute was Kshs2 billion which was required by donors so that as a commitment of the Kenya Government, if they gave Kshs2 billion, the donors would have released Kshs8 billion. So, this is what we asked and recommended the Kenya Government to fast track and pay the Kshs2 billion so that the donors could release their own contribution. Mr. Deputy Speaker, Sir, we have also recommended that Independent Power Producers (IPPs) should be approached so that where the Government cannot commit The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate.

Senators, as you are aware, before we vote on any Motion, we have to satisfy ourselves whether it is affecting counties or not. In my considered opinion, this is not a matter affecting counties. Therefore, I will proceed to put the Question.

Hon. Members, I have looked at the provision of Standing Order No.30 (2) that gives me the power to adjourn the House if it is at the convenience of the House. We have looked at the agenda that is before us and it is quite clear that the prosecution of that agenda will not be convenient at this moment for many reasons including the availability of the human resource to prosecute and contribute in the debate.

Hon. Members, there being no other business, the Senate stands adjourned until tomorrow Thursday 27th February, 2014 at 2.30 p.m. The Senate rose at 6.01 p.m. The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate.