National Assembly · Afternoon Sitting

Hon. Members, I wish to introduce to you a delegation of Members from the African Organisation of Public Accounts Committees (AFROPAC) who are seated in the Speaker’s Gallery. They comprise:

[(Loud consultations)]

Order, Hon. Members.

Hon. Members, as you may be aware, since 2009, the National Assembly and the Kenya Private Sector Alliance (KEPSA) jointly holds an annual engagement under the auspices of the Speaker's Roundtable. The annual event aims at bolstering the roles of the two institutions, including consideration of legislative and legal frameworks that are necessary for supporting the economic sector. Over the past 1…

Hon. Speaker, I beg to lay the following Paper on the Table: Legal Notice No.96 of 2024 relating to the Independent Policing Oversight Authority (General) Regulations, 2023, including the Explanatory Memorandum, Executive Summary and Synopsis of Stakeholders Engagement from the Independent Policing Oversight Authority (IPOA) . I thank you, Hon. Speaker.

Thank you. Next Order.

Hon. Speaker, pursuant to the provisions of Standing Order 44 (2) (c) , I rise to request for a statement from Leader of the Majority Party regarding a directive issued by the Private Security Regulatory Authority to private security service providers on minimum wage payable to private security officers. On 10th June 2024, the Private Security Regulatory Authority issued a public notice, purporte…

service providers, users, prospective users and representatives of users of private security services to submit to it legal commitments to comply with the set minimum wage for private security guards. In the said notice, the Authority threatened immediate cancellation of certificates of registration and subsequent deregistration of any private security firm that will not comply with the directive …

Thank you, Hon. Robert Mbui. Two joyriders have requested for an opportunity. Maj. Bashir. Where is he? Are you a Major or a Colonel? Proceed, Major Bashir.

Yes, Hon. Speaker. I am a Major. It is not easy to achieve the rank of a Major. It is not like going to an election and winning. I support the request for statement that has been read by Hon. Mbui. The matter here is about regulating the private security industry. The Private Security Regulatory Authority (PSRA) together with the Ministry of Interior and National Coordination appeared before the

because the law does not bind it. An example is the minimum wage issue that is not under the purview of the PSRA.

Make your point, Hon. Bashir. We do not have much time.

The mandate to determine the minimum wage lies with the labour council. The PSRA is to ensure it implements and enforces the minimum wage set by labour laws. It is not under their purview to set the minimum wage. Secondly, there is much despondency on the private security industry now because they are getting new legal notices every now and then, or after every two weeks or two months. My underst…

Hon. Osoro, make your point in one minute.

Thank you, Hon. Speaker. I also rise to support Hon. Mbui’s request for statement on the conduct and the directions given by the PSRA in regard to private security firms raising the minimum wage of security officers to Ksh30,000. The era of people or authorities making unilateral statements or directions is long gone. One cannot wake up one morning and do letters and spread them across all the sec…

Thank you. Hon. Tongoyo, you have one minute. You are the Chairman of the Committee on Administration and Internal Affairs. Give him the microphone.

Thank you, Hon. Speaker. I also want to comment on the issues raised by my colleagues on PSRA’s proposed increase of the minimum wage. As much as we agree with the concerns raised by Members, minimum wage is an ongoing discussion. It is good to agree that some of those big institutions like Equity pay their security officers as little as Ksh10,000. We proposed that security institutions be classif…

Thank you. Leader of the Majority Leader, this request for statement was directed at you. You also have your Thursday Statement. We only have nine minutes to start the next business. Give the Leader of the Majority Party the microphone.

Thank you, Hon. Speaker. Let me thank Hon. Robert for that request for statement. Many concerned people who run security firms have reached out to me. I commit that I will get in touch with the Ministry and give a response by Thursday next week.

In the interest of time, let me go to the usual Thursday Statement. Pursuant to provisions of Standing Order 44 (2) (a) , I rise to give the following Statement on behalf of the House Business Committee, which met on Tuesday, 11th June 2024, to prioritise business for consideration during the week. You communicated that the Cabinet Secretary for the National Treasury and Economic Planning, Prof. …

[(Loud consultations)]

Order, Hon. Members. Hon. Karemba and your team. Hon. CNN, go and take your seat.

Hon. Speaker, the only word I could understand in their conversation was Muguka. The House will consider the following Motions.

[(Loud consultations)]

Order. Take your seat. Hon. Karemba, can you go to where you normally sit? Hon. Karemba, go and sit where you normally sit. Wind up, Leader of the Majority Party.

[(Laughter)]

Hon. Speaker, those seats are actually reserved for Members of the Parliamentary Service Commission (PSC) and the Deputy Speaker. The Commissioners have been displaced. The House will consider the following:

Hon. Rahab Mukami, you have a request for a statement which I have deferred to Tuesday, 18th June 2024.

[(Hon. Rahab Mukami’s request for a statement deferred)]

On a point of order, Hon. Speaker.

Hold your horses to Tuesday. I said I have deferred to Tuesday. I will give you an opportunity then. Yes, Hon. Wangari, what is your point of order?

[(Hon. Rahab Mukami spoke off record)]

Thank you, Hon. Speaker. It is not usual to comment after the Leader of Majority Party’s Statement. But indulge me on the issue of Questions by Private Notice. They are supposed to be answered within a week. For example, the Question about the case of a girl who was killed in Gilgil was asked on 12th September

I will give you guidance next week.

[(Hon. GK Ruku spoke off the record)]

Order, Hon. Ruku. I have received two Statements, one from the County Woman Representative for Lamu County, denouncing and renouncing muguka, and another one from you, praising muguka as a valuable resource mobiliser crop from your region.

[(Applause)]

Yes.

The two Statements are with me. I will give you time next week, if you want to bring them to the House, so that you can present them. But I will not allow you to use a Statement that you have given to the Hon. Speaker to picket on the Floor of the House.

[(Applause)]

On behalf of the Kambas, can I say something?

No! You will not say anything. If I give time to say something, the Member for Lamu County will also want to say something. I do not want to dilute the importance of this day in this Parliament.

[(Applause)]

Mover of the Bill, Hon. Ndindi.

Hon. Speaker, I beg to move that the Equalisation Fund Appropriation (No.2) Bill, (Senate Bill No.30 of 2023) , be now read a Third Time. Before I call the Seconder, I want to thank all the Members and the House for ably debating this matter and for passing Ksh7.4 billion that will be going into the Equalization Fund. It is also important for Members to know that we have also budgeted for the ar…

Thank you.

On a point of order, Hon. Speaker.

What is out of order, Hon. Member? You have the microphone.

Thank you, Hon. Speaker. Unfortunately, for the better part of this year, I have been unwell and have not been attending House sittings.

Pole.

Yesterday, when I looked at the list of the constituencies that have been allocated the Equalization Fund, unfortunately, Kilifi South was missing. I looked at the other constituencies that have been allocated the funds, but I could not understand ….

Order, Hon. Chonga. Take your seat. Order, Hon. Chonga. The Speaker does not allocate the Equalization funds. I am sure you know where to find the answers. Hon. Farah Maalim, to second.

[(Hon. Ken Chonga spoke off the record)]

Hon. Speaker, I beg to second. While seconding this Motion, it is important to mention that we were together in the 10th Parliament under the new constitutional dispensation when the Equalization Fund was created. The idea was that the traditional, historically marginalised areas be brought up to speed with the rest of the country and, more so, in light of what we had before which was called Sessi…

Order, Hon. Farah. You are making an important point at the wrong forum.

I just want to make an observation. I have already seconded, in line with what the Chairperson has elaborated on why he thinks that this should be passed.

Those are matters that are canvassed in debate at the Second Reading.

I am also elaborating on that, but putting a rider, in that, this has been watered down to 34 constituent counties. So, I support it and I am happy that the Chairperson of the Committee has done a lot to make sure this money is disbursed. But how much infrastructural development will Ksh90 million do in Garissa in terms of tarmac roads, the national electricity grid and the things it is supposed t…

Thank you. Hon. Chonga, the allocation of the Equalisation Fund is done by the Commission on Revenue Allocation (CRA) . Order, Hon. Farah Maalim. We are the ones who drafted the Constitution. The areas that were identified were subsequently expanded by CRA and approved by Parliament. Can I put the question?

[(Hon. Farah Maalim spoke off record)]

Yes.

I confirm that we have the requisite quorum.

[(Question proposed)]

[(Question put and agreed to)]

[(The Bill was according read a Third Time and passed)]

Order, Whip of the Majority Party. Take your seat.

[(Question put and agreed to)]

Hon. Members, pursuant to the provisions of Section 40 of the Public Finance Management Act, 2012 and Standing Orders 25A (a) and 244C, I will now interrupt the business of the House to allow the Cabinet Secretary for the National Treasury and Economic Planning to make a public pronouncement on the budget highlights and revenue raising measures for the national Government for the Financial Year 20…

[(Hon. G.G. Kagombe consulted loudly)]

[(Laughter)]

Kenya has not been spared from the negative effects of climate change. The recent unprecedented floods that our country faced following the prolonged drought in 2021 and 2022 claimed lives, caused injuries to many people, and wreaked havoc on property, infrastructure and livelihoods. The Government responded promptly and undertook short-term measures to mitigate the devastating impacts of the drou…

program, Ksh6.1 billion for the National Agricultural Value Chain Development Project, Ksh2.5 billion for the Enable Youth Program, Ksh2.4 billion for the Enable Youth and Women in Agriculture, Ksh747 million for Small-scale Irrigation and Value Addition Project and Ksh642.5 million for Food Security and Crop Diversification project. To improve livestock production, I propose Ksh2.4 billion for D…

provide medical cover for orphans, elderly and severely disabled persons in our society, Ksh4.6 billion to cater for the stipend and acquisition of specialised medical equipment for community health promoters and Ksh4.1 billion for the Primary Health Care Fund. To lower cases of HIV/AIDS, Malaria and Tuberculosis and enhance the vaccines and immunisation programme in the country, I have proposed …

energy, Ksh2.2 billion for alternative energy technologies and Ksh920 million for the development of nuclear energy. Hon. Speaker, I will now turn to improving education outcomes. The Government continues to invest in education to improve education outcomes and create a level playing field for all Kenyan children. From this end, I have proposed a total allocation of Ksh656.6 billion or 27.6 per c…

Revitalisation Project, Ksh260 million for the National Edible Oils Crop Promotion Project and an allocation to National Agricultural Value Chain Development Project, which includes support for cashew nut development. To enhance milk processing, I have proposed Ksh1.5 billion for excess milk mop up, Ksh500 million for modernisation of Kenya Co-operative Creameries (KCC) milk factories, and Ksh250…

the arts and culture, infrastructure. It will support cultural production as well as the creative economy. We are also cognisant of the brand value of Kenyans participating and excelling in international sports arena. To support tourism, sports, culture and even recreation, I have proposed an allocation of Ksh23.7 billion. This includes an allocation of Ksh16.5 billion for the Sports, Arts and So…

objective of these reforms is to develop an elaborate tax policy that will raise adequate revenue to finance recurrent as well as development budgets. For this reason and to materialise it, we intend:

group with a consolidated annual turnover of €750 million whose effective corporate tax rate is below 15 per cent. The spectrum of license fees paid by telecommunication operators are currently not tax deductible, thus creating unfairness in the tax system. In this regard, I propose to amend the Income Tax Act to allow telecommunications network operators to deduct the spectrum licenses fees over…

Tax expenditure was estimated at Ksh393.6 billion, or about 2.9 per cent of GDP for the year 2022. Of this amount, VAT tax expenditure amounted to Ksh248.3 billion, or what is

by non-residents through a digital platform. The Finance Act introduced excise duty on fees charged on advertisement of alcoholic beverages, betting, gaming, rotaries and prize competition on TVs, print media, billboards and FM stations. This resulted to a shift in choice of advertisement platform from the traditional media to internet and social media. To create a level-playing field and to achie…

environment and human health. In this regard, I propose to introduce Eco-Levy on various products to be payable in line with the Polluter Pays Principle. The Levy will be imposed under the Miscellaneous Fees and Levies Act. I now move to amendments to the Kenya Revenue Authority Act. In order to enhance public knowledge and literacy on tax matters, I propose to amend the Kenya Revenue Authority A…

Sixth, I appreciate the media and non-state actors for their active engagement and participation in the Financial Year 2024/25 budgeting process. I remain immensely grateful to my family for their support and inspiration as I execute my duties at the Ministry of the National Treasury and Economic Planning, which is not an easy task, I can tell you. Lastly, my utmost gratitude goes to all Kenyans…

[(Applause)]

[(Applause)]

Thank you, Cabinet Secretary. Cabinet Secretary, I am waiting for the handing over of the documents.

[(The Cabinet Secretary handed the documents to the Hon. Speaker)]

Thank you. You may take your seat. Hon. Members, I wish to thank the Cabinet Secretary for the National Treasury and Economic Planning for ably making a public pronouncement of the Budget Policy Highlights and Revenue-Raising Measures for the National Government for the Financial Year 2024/2025 and the Medium-Term Debt Management Strategy 2024. In this regard, Hon. Members, I wish to confirm that …