daily nation friday 14th june 2013

KSh50/00 (TSh1,700/00 : USh2,700/00 : RFr900/00) www.nation.co.keNairobi | Friday, June 14, 2013 No. 17608

The national hero who ran against racism and the gains made in education

Milestones in Kenyas 50 year history > DN2

INDEX

BUDGET| Policies to speed up job and wealth creation unveiled as more resources allocated to boost security and spur investment

I almost doubled the resources going into vulnerable people, the elderly and all that. Henry Rotich

ANN KAMONI | NATIONThe Cabinet Secretary for the National Treasury, Mr Henry Rotich, when he left the Treas-ury Building to read the 2013-2014 Budget yesterday.

Tax and spend budget>> News: Sh1.6trn Budget will fund growth but increase tax burden. P2

>> Reactions: Youth welcome plans to create job opportunities. P4

>> Analysis: Public servants demands for higher pay will hurt spending plan. P5

>> Review: Police service given Sh67bn to ght crime. P8

The rst budget of the Jubilee government goes some way in meeting campaign promises, but Kenyan taxpayers will have to pay hard for the raft of projects sharing the record spending Stories and pictures on Pages 2-11

News P. 2-11, 16, Back Opinion P. 12-13 Letters P. 14 County P. 18-23 World P. 24-30 Business P. 32-37 Sport P. 67-71

LOSERS

WINNERS

Sh17 billion annually for four years to buy laptops, build computer laboratories and train teachers

POLICETRANSPORT AGRICULTUREEDUCATION

Sh15 billion to nance construction of two-track railway lines from Mom-basa to Kisumu to speed up movement of goods

Sh13.6 billion for new markets and irrigation, plus low interest loans for farmers to increase food production

Sh67 billion for new vehicles, equipment and houses for police ocers and to step up war on crime

The proposed 16% Value Added Tax on all basic goods will push up the cost of items like maize meal, sugar and bread

CONSUMERS IMPORTERS LANDLORDS GAMBLERS

KRA directed to track owners of property in urban areas in fresh at-tempt to bring landlords under the tax net

Winnings from gaming, betting, lotteries and promotions to be taxed following amendments to Income Tax Act

1.5% new levy on all im-ports to nance construc-tion of modern railway line. Kenyans to pay more for cars, clothes and oil.

BUDGET

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WINNERS Kenya Railways

Corporation: Has been exempted from paying import duty on items to facilitate railway operations.Importers will pay 1.5 per cent Railway Development Levy on all imported goods.

Importers: Sh15 billion to fund construction of a standard gauge railway line from Mombasa to Kisumu that will reduce freight cost.

Biogas manufacturers: Duty exemption on plastic bag biogas digesters.

Manufacturers: Increase in import duty for electrodes, millstones and grindstones and tubes for packing toothpaste and cosmetics to encourage growth of local industries.

Employers: Exemption on premiums for group life and group personal accident covers that do not confer a benet to employees.

Persons with disabilities:Extension of tax exemption status period from three to ve years.

National Police Service Commission: Sh1.2 billion to build 2,000 houses through the National Housing Corporation.

Albinism: Sh100 million allocation towards people with the condition.

People with extreme disability: Will get Sh770 million for doubling coverage of beneciaries.

Orphans: Will get Sh8 billion to double number of beneciaries under the cash transfer programme.

KRA: Parliament to amend Income Tax Act to impose withholding tax on winnings from gaming and betting.

Government has initiated review of capital gains tax to dene modalities for its eective enforcement.

Proposed improvement of compounding framework for income tax to speed up dispute resolution between KRA and taxpayers with tax oences.

Amendment of Income Tax Act will empower commissioner to access books of accounts of corporate bodies.

Customs law will be amended to introduce customs warehouse rent for goods that remain at the port of discharge for a period exceeding 21 days from commencement of the discharge.

VAT Bill to be re-tabled with its enactment expected to generate Sh10 billion for the Exchequer.

Taxman has been directed to employ technology to map out all rental property in urban areas to bring all landlords under the tax net.

Keg brewers: Reduction on excise tax remission from 100 per cent to 50 per cent.

Victims of tax injustices: A Tax Appeals Tribunal Bill to establish a single tax appeals body is expected to speed up resolution of disputes.

Insurance industry players: The Insurance Act will be amended to open up the ownership of insurance companies and brokerage rms to other citizens of the EA Community.

Insurance sector players: Insurance Regulatory Authority to initiate an overhaul of the Insurance Act to align it with best international practices and the Constitution.

Depositors: Proposed amendments to the Kenya Deposit Insurance Act to expand the Corporations mandate and enhance its corporate governance.

Real estate developers:The law will be amended to encourage pooling of resources through real estate investment trusts for the sole purpose of real estate development.

Investors: The Capital Markets Act will be amended to provide for the issuance of regional xed income securities.

LOSERS Importers: They will

pay 1.5 per cent Railway Development Levy on all imported goods.

Insurance companies: Employers exempted from payment of premiums for group life and group personal accident covers that do not confer a benet to the employees.

Gamblers: Amendments the Income Tax Act to impose withholding tax on winnings from gaming and betting.

Investors: Government has initiated review of capital gains tax to dene modalities for its eective enforcement.

Consumers: VAT Bill to be re-tabled in Parliament. Enactment will raise the cost of living.

Landlords: KRA directed to employ technology to map out all rental property in urban areas to bring all landlords under the tax net.

WINNERS AND LOSERS

Relief for railways as importers told to foot line expansion bill

BY WACHIRA [email protected] CHARLES [email protected]

Consumers will face high prices of basic goods and food items as the Treasury moves to raise additional revenue to nance the Jubilee Coalitions campaign pledges, including free maternal health services and laptops for pupils.

Among the raft of infrastructure projects to be funded is the construction of a modern railway line, which is expected to be completed in the next three years. The line will reduce travel time between Mombasa and Nairobi threefold. It is also expected to reduce the transportation of heavy goods by road, reducing the cost of transportation while easing the ow of trac on major highways.

Finance Cabinet Secretary Henry Rot-ich also announced he would re-introduce the controversial Value-Added Tax Bill to Parliament through which he will be seek-ing to impose a 16 per cent tax on basic consumer goods.

I will re-table the VAT Bill, which aims to simplify, modernise and reduce the cost of compliance by realigning our

tax policies with the Constitution, Mr Rotich said when he presented the Sh1.6 trillion Budget proposal for the nancial year 2013/14 at Parliament Buildings yesterday.

The prices of basic goods such as milk, bread, maize and wheat our, sanitary towels and newspapers will go up by at least 16 per cent once Parliament enacts the Bill.

The cost of farm inputs including fer-tilizer, livestock feeds and pesticides will also go up by the same margin, which could lead to an increase in the prices of vegetables, fruits, maize and other farm products. Mr Rotich expects to raise Sh10 billion through this tax.

The second tier of consumer goods price increases will come from the 1.5

per cent duty imposed on all imported goods. The tax is meant to raise money for the construction of a modern railway line from Mombasa to Kisumu.

Under the Jubilee manifesto, the con-struction of the two-track standard gauge railway line is one of the top priorities.

When completed in three years time, (this project) will reduce signicantly the cost of freight, thereby saving businesses huge resources, Mr Rotich said.

However, for consumers, this will trans-late to more expensive goods.

The value of houses and cost of renting will also go up with the reintroduction of the Capital Gains Tax, which is expected to increase the cost of land transaction as

Tax measures to boost growth but prices of goods will go up

SPENDING PLAN | Importers will pay more to fund construction of new railway line

Rotich oers many goodies but new revenue measures risk hurting consumersand raise the cost of living

EMMA NZIOKA | DAILY NATIONWananchi wait outside Parliament Buildings, Nairobi, where the National Treasury Cabinet Secretary, Mr Henry Rotich, was reading the 2013/2014 Budget yesterday.

CONTINUED ON PAGE 3

DAILY NATIONFriday June 14, 20132 | National News

BUDGET

BY JOHN [email protected]

At 3.30pm yesterday, Treasury Cabinet Secre-tary Henry Rotich stood to read the rst Budget state-ment of the Jubilee government in the National Assembly.

He looked very much like his predecessors at the Treasury briefcase with the colourful coat of arms and the rose in his jacket lapel. He was also directed to the side of the Speakers seat on which the Government usually sits.

But his presentation was in circumstances that have changed dramatically as a result of the separation of powers under the presidential system of government taking root since the General Elec-tion and the abandonment of the old ways.

For one, the Speaker of the National Assembly and the mace, the symbol of Parlia-ments power, had to leave the chamber. This made it possible for Mr Rotich, who is not an MP, to condently stroll in and sit.

The House was eectively a large meeting hall of the Budget and Appropriations Commit-tee and its chairman, the Rev Mutava Musyimi, was running the show.

Mr Rotich was in the com-pany of Ms Anne Waiguru, the Cabinet Secretary in charge of Planning and Devolution. He took the seat normally occupied by Majority Leader Adan Duale.

One could tell that he was on unfamiliar ground, though, as he inspected his surround-ings, he whispered greetings to those he could recognise and settled down to await the call to address the MPs and indeed the nation.

Outside Parliament, there were signs that some things had changed and others not much. The agpoles tradition-ally planted on Budget Day were in place and the guard rails op-posite Parliament Buildings had a banner ag wrapped around them.

No guard of honour But there was not going to be

a president in attendance and, therefore, no guard of honour and no cumbersome security detail in the buildings.

As he started reading from an iPad with the briefcase lying unopened, some MPs scribbled furiously while others tapped on their laptops or tablets.

In the past, MPs rarely left the chamber as the Budget was read. This time, quite a number walked out, perhaps because they did not wish to rest their eyes while in the chamber like in the past.

Those who remained drummed on the oor whenever Mr Rotich said something they liked, such as the allocation of Sh19.1 billion for the Parliamen-tary Service Commission.

The announcement that ma-terials to put together the new railway would not be taxed was also received warmly.

When he announced the vari-ous allocations to take care of the disabled, ODM nominated MP Isaac Mwaura thumped his feet like the rest and un-able to contain his joy, stood and clapped.

But when Mr Rotich an-nounced that the VAT Bill, which could impose taxes on basic commodities, is coming back, a few shook their heads and questioned the logic of that statement.

There will clearly be some explaining for the Cabinet Secretary to do on that one when the Bill, which has been approved by the Cabinet even-tually gets to Parliament.

He completed the marathon

58 minutes without once reach-ing for the bottles of water to his left.

By then, the chamber was half full. Those who had re-mained behind eagerly lined up to shake his hand, with a few hugging him in congratu-lation.

Most popular manHe was clearly the most

popular man in the chamber and this continued outside, where the Budget Committee had organised a small feast and the Administration Police band to entertain.

MPs will have some time to digest the full meaning of his first Budget before they can begin the actual job of deciding whether the Bills to implement his ideas are good enough to become law.

Speakerand the macewere for the rst time not in the House

Day with dierence as stranger readsrst Jubilee Budget

STATEMENT | Rotich was the most popular man in the chamber

3.30pmThe time yesterday when Treasury Cabinet Sec-retary Henry Rotich stood to read the Budget

STEPHEN MUDIARI | NATIONTreasury Cabinet Secretary Henry Rotich reads the budget for the nancial year 2013/2014 in the National Assembly yesterday.

investors pass on the cost to buyers. The tax will also aect those invest-ing in shares and debt in the capital markets.

Promising to cast the tax collection net wider, Mr Rotich also reiterated the governments eorts get landlords into the tax net. He called for the de-ployment of technology in mapping out all rental property in urban areas. Landlords have warned that this could result to high rent for consumers.

The move is likely to pile more pressure on consumers with landlords expected to pass the additional cost to tenants.

I have once again directed KRA to leverage on technology, map out all rental property in urban areas and put in place a robust institutional frame-work for bringing all these landlords into our tax net by December 2013, Mr Rotich said.

Hunt for more cashBut the Treasurys hunt for more

cash will not only be felt in the pricing of basic goods. Last year, the govern-ment introduced a 10 per cent exercise duty on the fees charged for all nan-cial transactions.

The new tax, which became eective in February, makes it more expensive to send or receive cash on mobile money platforms such as M-Pesa, Airtel Money, yuCash and Orange money. The review of the Excise Duty Act could reveal more taxes on these and on beer and cigarettes.

Toothpaste and cosmetic goods are also likely to cost more after Mr Rotich imposed a 10 per cent to 25 per cent duty on import of plastic tubes for packing toothpaste, cosmetics and similar products. The move will shield manufacturers from cheap imports.

In the health sector Sh3.8 billion was set aside for free maternal health and Sh700 million for free access to all health centres and dispensaries.

I have allocated a further Sh3.1 bil-lion and Sh522 million for recruitment of 30 community nurses and 10 com-munity health workers, respectively per constituency to provide quality health care services to Kenyans, Mr Rotich said.

Rotich oers goodies but tax to go upCONTINUED FROM PAGE 2

DAILY NATIONFriday June 14, 2013 National News 3

BUDGET

BY MUTHOKI [email protected]

A week ago, Ms Rose Kerubo suf-fered her third miscarriage.

Ms Kerubo braids hair in Nairobis Kasarani area, a job that earns her some Sh15,000 at months end.

She has a history of high-risk preg-nancies, but is often torn between purchasing food for her four-year-old daughter and paying for the needed antenatal care.

When she spoke to Daily Nation yesterday, her fervent wish was for the government to deliver on its budget promise to provide Kenyan mothers with free, quality maternal healthcare.

Carrying a child for months only for it to die before birth is very pain-ful. I dont want to go through this again, she said.

In January, while only one month pregnant, Kerubo was taken ill for the rst time. Doctors at the hospital in

Kasarani prescribed a regimen of drugs that would cost at least Sh1,000 per dose. She was advised to take it easy and avoid strenuous activity.

She could obey neither of the doc-tors orders. In order to earn money for the drugs, she had to keep work-ing.

Hours on her feetIn order to keep food on the table,

she spent hours on her feet, braid-ing hair and sewing on weaves. Five months later, a previously active foe-tus went silent. A visit to the hospital brought with it ominous news.

A Sh1,500 pelvic scan found no sign of foetal cardiac activity, a symptom that was consistent with a pregnancy of poor outcome.

The baby simply stopped moving, she said.

Ms Kerubo had suered her second miscarriage in as many years, the third that the 24-year-old has suered in her lifetime.

A subsidised procedure to extract the foetus from her body cost her Sh3,000.

While lack of access to health

services was perhaps not the direct cause of her miscarriage, Ms Kerubo believes her chances of carrying ba-bies to term would be higher with proper, aordable medical care.

Days after her ordeal, Ms Kerubo is back to her nine-to-ve, determined to earn a living.

Although she tried to brush the fear away, the concern of a repeat ordeal was very real as she gave her views on the Budget.

The Jubilee government has pledged to increase access of health services. In particular, the government has said it will provide free healthcare services to pregnant mothers.

This promise was reected in the 2013/2014 Budget statement read to Parliament yesterday by the Cabinet Secretary for the National Treasury, Mr Henry Rotich.

The government has allocated Sh31.6 billion to the health docket, with Sh3.8 billion to maternal health-care.

Free maternity sweet music to mothers ears

PHOEBE OKALL | NATIONMs Rose Kerubo with a client at her salon in Kasarani, Nairobi yesterday.

BY MUTHOKI [email protected]

Carol Gichuki has been manag-ing her sisters second-hand clothes business for one and a half years.

A university graduate with training in community resource management, Ms Gichuki had hoped to get employ-ment in her area of qualication.

It is not easy out there. Hopefully devolution and the new government will create more job opportunities for the youth, she told Nation yester-day.

Ms Gichukis dilemma was of spe-cial focus in Finance Secretary Henry Rotichs budget speech presented to Parliament yesterday.

Mr Rotich outlined a raft of meas-ures that the government intends to put in place to make it easier for inexperienced college graduates to either gain employment or set up businesses of their own.

The government, for instance, plans to introduce tax rebates to businesses that hire fresh graduates while investing Sh6 billion in a fund targeted at growing entrepreneurship among the youth.

This was welcome news to Ms Linah Karuku, a businesswoman whose daughter has been without formal employment since she gradu-ated from university with a degree in

tourism last year.We want the government to make

it easier for young people to get jobs or to set up their own businesses, she said.

When she rst spoke to the Nation on the eve of Budget Day last year, Ms Karuku revealed her ambition to expand her supermarket in Kasarani. Although she has achieved her goal, she is ghting a fresh battle against crime after her mini-supermarket was attacked by gangsters last week. She is now installing grills to boost security.

If measures to fund security out-lined by Mr Rotich yesterday prove successful, Ms Karuku may rest as-sured of safer nights.

Despite these seemingly positive developments, families are weary of bearing a heavier tax burden under the proposed Value-Added Tax Bill.

Mr Rotich said he would re-table the Bill as part of an eort to bridge gaps in the Sh1.64 trillion budget. If passed, the Bill will see the prices of basic commodities such as milk, wheat and bread increase by 16 per cent.

Some of these commodities

are basic human rights. Instead of weighing them down with taxes, the government should be doing more to widen the tax base by bringing in the informal sector, said Mrs Akosa Wambalaba, a lecturer at USIU.

Ms Maureen Kegehi, who runs a school in Nairobis Utawala area, warned that increasing VAT on basic commodities could have a ripple ef-fect on other goods and services as well as family savings.

Youth welcome plans to create jobs but BITTER-SWEET OUTCOME | Imposing tax on milk, bread may have negative ripple eects on other sectors, warn experts

Young graduates laud Rotichs measures to help get employment or start businesses as parents protest 16pc VAT on wheat, bread

If the price of food goes up, it will become more expensive to run schools. Fees could go up and this will put pressure on poor parents School owner Maureen Kagehi

PHOEBE OKALL | NATIONMs Gichuki during the interview at her sisters shop in Nairobi, yesterday.

BY NATION REPORTER

Orphans and the elderly were among the key beneciaries of the Jubilee governments rst budget as the money meant to improve their livelihoods went up by 40 per cent.

Presenting the budget to Parlia-ment yesterday, Cabinet Secretary for the National Treasury Henry Rotich raised the money that will also cover people living with dis-abilities by Sh3.8 billion.

The increase means the govern-ment will spend Sh13.4 billion for cushioning the poor and vulnerable people in the next nancial year.

Former President Mwai Kibaki spent Sh9.6 billion as safety nets for the special groups of people during his last nancial year in oce, which ends on June 30.

The Jubilee governments in-creased expenditure plans for the cash transfer programmes appears to be in line with its manifesto, which stressed that it will bring more people into the stipend coverage net.

The manifesto says a Jubilee gov-ernment will increase the reach of cash transfers to attain universal coverage for older persons and persons with disabilities.

Mr Rotich said poverty and vulnerability posed a signicant risk to the well-being of some Kenyans.

With over 50 per cent of Ken-yans living below the poverty line, we have prioritised cushioning those less fortunate, poor, elderly and persons with disability in our communities, he said.

According to the Budget, Sh8 billion will be spent on orphans and vulnerable children under the cash transfer programme.

The allocation will help double the number of orphans benet-ing from the programme from the current 155,000 households to 310,000 households.

The number of elderly people beneting from the cash transfer programme will be raised from the current 59,000 to 118,000. Some Sh3.2 billion will be spent on cush-ioning the older citizens.

Cash for theelderly andorphans upby Sh3.8bn

Number of elderly people who will be under the cash transfer pro-gramme, up from 59,000

118,000


BUDGET

BY NATION REPORTER

Thirty nurses and 10 community health workers will be employed in every constituency.

The Sh3.6 billion plan seeks to enhance service delivery at public health centres and encourage more Kenyans to visit the facilities.

The government has also set aside Sh1.2 billion to build 1,500 housing units for health workers near the cen-tres to make them accessible.

While making his inaugural budget speech yesterday, Treasury Cabinet Secretary Henry Rotich also an-nounced that Sh200 million had been allocated for the construction of clinics in the slum areas of Nairobi, Kisumu and Mombasa.

Some Sh3.8 billion will go into providing free ante-natal and deliv-ery services for pregnant women in public hospitals.

Director of Medical Services Francis Kimani said the Treasury had also released Sh1 billion for the purchase of additional equipment, such as delivery beds and incubators.

Dr Kimani said this was meant to cope with the expected increase in the number of expectant mothers seeking maternity care.

30 nurses to be hired in each constituency

BY MWANIKI [email protected]

The government will map out rental houses in the country in a fresh bid to bring more landlords to the tax net.

For equity and fairness and to ensure that these privileged Kenyans pay taxes, I have once again directed KRA to leverage on technology, map out all rental property in urban areas and put in place a robust institutional framework for bringing all these landlords into our tax net by De-cember 2013, National Treasury Cabinet Secretary Henry Rotich said when he read the 2013/2014 budget yesterday.

The controversial VAT Bill that is expected to bring Sh10 billion to the exchequer will be re-introduced in Parliament, with the objective of making it simple and march it with international practices.

Amends proposed on tax lawThese are among measures

that Mr Rotich said would help boost revenue collection in the next nancial year.

The Cabinet Secretary also proposed changes in the law to enable Kenya Revenue Authority compound tax oences under the Income Tax Act to encour-age tax oenders to settle their tax cases outside the courts.

For instance, the commis-sioner-general of KRA will

be given authority, through amending the Income Tax Act, to access books of accounts of corporates and where tax eva-sion is proved in court, collect

corporate tax where such or-ganisations are convicted of tax frauds.

These rare but bold measures are intended to deter tax cheats and enhance tax compliance. Mr Rotich said.

And to decongest the port, importers who delay in clear-ing their cargo will have to pay customs warehouse rent after 21 days from the date of com-mencement of discharge of the carrier.

The National Treasury chief has also enhanced tax man-agement systems on excisable goods by issuing a gazette notice on Excisable goods

Management system 2013, that prescribes procedures and guidelines for its operations.

Revenue from alcoholThe government expects to

generate Sh6.2 billion from excise tax on Senator keg beer and other related beers meant for the low-end market. But this will be limited to beers made from sorghum, millet and cas-sava so as to boost production of these crops by farmers.

He noted that it had become dicult to dierentiate between various beer products and Sena-tor keg, thereby posing a threat to revenue collection.

KRA told to come up with ecient measures to bring more landlords into the tax net

BILLY MUTAI | NATIONODM nominated MP Isaac Mwaura (left) with Limuru MP Kiragu Chege (TNA) outside Parliament Buildings, Nairobi, after the reading of the budget yesterday.

TAXES 2012

food taxes spoil the party for families

Cabinet Secretary for National Treasury Henry Rotich was reading a Budget state-ment in the context of crippling revenue shortfalls, incessant demand for high salaries by public servants, pressure for money from governors and a burgeoning public debt.

Thus, all predictions were that the new administration of President Kenyatta would use its rst budget as the opportunity to raise taxes and announce new spending cuts. The time for austerity and the shift from the Kibaki administrations policy of borrow and spend had arrived. But it is clear from yesterdays budget that the new administration has calculated that austerity can only choke growth.

Changing course would have meant revers-ing to the Moi years of short-termism and risk aversion. A closer look at the budget shows a clear attempt to maintain high expenditure on infrastructure roads, ports, railways and the aging electricity grid.

The development budget has also been kept high. The idea of introducing a levy to fund the proposed new railway line from Mombasa to Kisumu was a new invention. Until recently, the thinking was that the new railway line to be nanced and built by the Chinese would be funded by a levy on road users.

President Kenyatta has also demonstrated

that he is willing to do what makes economic sense even if it means taking political ak.

Weeks ago, he has surprised friend and foe when he opposed higher salaries for MPs. In the ti between the Senate and the National Assembly, he has made it clear that county governments and the senate must be made to embrace scal sanity and prudence.

With public opinion shouting at the gov-ernment over the introduction of VAT, the predictions were that the government would suspend the idea. It did not happen. Mr Rotich made it clear that he will shortly re-introduce the controversial VAT Bill.

Indeed, although the Bill is hugely unpopular, the economic reasoning behind it is sound. VAT is universally regarded as the tax of the future. And the problem is that the productivity of VAT has been declining steadily since 1990 when it replaced the defunct sales tax.

Statistics show clearly that as a ration of GDP, Kenya is not collecting enough of VAT mainly due to a complex system of exemptions and zero rating. It remains the countrys best chance of improving revenues. The system of VAT refunds has proved to be messy and unworkable.

Is this budget a clear and costed plan to kick-start recovery? May be not. Indeed, the big question is whether Mr Rotichs gures add

up. At 7.9 per cent of GDP, the budget decit is the highest in 10 years. Where will the money to fund the high infrastructure spending plan come from?

Clearly, Mr Rotich is counting on borrow-ing and support from multilateral lenders, and expansion. Although the Cabinet Secretary has set the domestic borrowing requirement at a fairly low level (Sh106 billion), indications are that the government will be aggressive in the international market with either a syndicated loan or a Eurobond.

And, instead of new taxes, the minister is counting on tweaking the taxation regime. Tax-ing gambling is a new idea and so is the idea of re-introducing Capital Gains Tax.

The advantage President Kibaki had was the fact he took over at a time when the economy had suered years of under-investment by the state. The rst thing Finance minister David

Mwiraria did was to suspend all procurement ocers in the public sector. They opened the purse strings and threw money at free primary education, construction of roads, water projects and building bre optic cables.

They pumped money in restructuring the KCC, bailing out Uchumi Supermarkets and promised to revive the Kenya Meat Commis-sion and the Kenya Farmers Association.

In the rst year, the budget for roads increased threefold. In his rst budget, Mr Mwiraria made the unprecedented move of lowering the cash ratio by a huge margin. Interest rates came down massively and the private sector started borrowing again.

Banks started giving out consumer loans. By the end of 2004, the rate of the 91-day Treasury Bills had come down to one per cent.By 2006, the economy grew by seven per cent, the highest level in two decades.

President Kenyatta is taking over under dier-ent circumstances. Monetary policy is stretched. Domestic debt has ballooned, and the wage bill is at an unsustainable levels.

Interest on gross domestic debt increased by Sh122 billion between June 2012 and the end of March this year.

Steering the economy to the next level will be President Kenyattas biggest challenge.

Huge wage bill, debt and county cash a headache for Uhuru ANALYSIS | Jaindi Kisero

Years the economy grew by seven per cent, the highest level in two decades.

2006


BUDGET

BY BENJAMIN [email protected]

The government yesterday allocated Sh53 billion for the much-hyped laptop project, but failed to provide cash for recruitment and promotion of teachers.

This instantly drew the wrath of the teachers union, which threatened to call a national strike to protest a deliberate and mischievous attempt to undermine teachers and destroy the profession.

Presenting his maiden Budget statement, Cabinet Secretary Henry Rotich allocated Sh53.2 billion for the laptops to be given to Standard One children next year, but gave only Sh119 billion for the salaries of the teachers currently on payroll.

Without additional cash, the National Treasury chief effectively blocked teacher recruitment and promotion. Some 25 billion was required for the undertaking.

Mr Rotich said: The government has prioritised transforming the educational system to e-teaching and e-learn-ing. When fully implemented the policy will reduce the cost of buy-ing and replacing text books, and improve access to information, communication and technology

in schools and households.We have in the medium term

allocated Sh53.2 billion for de-ployment of 1.35 million laptops to class one pupils, development of digital content, and building capacity of teachers and rolling out computer laboratories for Standards Four to Eight in all public schools. This translates to Sh17.4 billion each nancial year starting from 2013/14.

But Kenya National Union of Teachers (Knut) chairman Wil-son Sossion termed the budget an insult to teachers.

It dees logic to put in so much for laptops but fail to al-

locate anything for employing and upgrading teachers, he said. There was no reason to invite stakeholders to participate and make recommendations dur-ing the budget-making process and then reject their views, he said.

Knut had asked for Sh25 bil-lion, including Sh15.2 billion for hiring primary and secondary school teachers, Sh5 billion for nursery school teachers and Sh4 billion for promotions.

Mr Sossion said the union will convene a national executive council meeting to given direc-tion on the strike option.

Sh53bn for laptops as teachers cry foulCabinet Secretary fails to allocate Sh25 billion needed for hiring and promotion of more tutors

REACTION | Union threatens industrial action until demands are met

FILE | NATIONPupils in class at Olympic Primary School. The government has set aside funds to roll out an e-learning project in all schools next year.

The Jubilee manifesto aims to:

Work with partners to pro-vide solar powered lap-top computers equipped with rel-evant content for all pupils

Develop electronic teach-ing and learning in schools progressively starting with primary schools

Expand the bre optic net-work to cover schools, hospi-tals and police stations

Progressively roll out free Wi-Fi in major towns in the next 5 years

MANIFSTO

Jubilee moves to full pledge

BY NATION REPORTER

Construction of Kenyas second port got a boost yesterday follow-ing an allocation of Sh3.7 billion to nance setting up of the rst three berths and associated in-frastructure.

As a government, we want to support investments in order to grow our economy. We have pro-grammed to spend Sh3.7 billion for construction of the rst three berths and associated infrastruc-ture of the Lamu port under the Lapsset (Lamu Port-South Sudan-Ethiopia Transport) project, the Cabinet Secretary for the National Treasury, Mr Henry Rotich, said in his rst Budget statement.

Three berthsIn mid-April, a subsidiary of the

China Road and Bridge Corpora-tion won a tender for construction of the three berths at an estimated cost of Sh41 billion.

The work, lined up under Vi-sion 2030 key infrastructure projects, will cost Sh2.1 trillion to complete.

Experts have projected that once complete, the Lapsset project will contribute about 2 per cent to the countrys economic growth. It will provide a second key transport corridor in order to decongest the Mombasa port.

Sh3.7bn boostfor the Lamuport project

UNIVERSITY OF NAIROBI MAKERERE UNIVERSITY UNIVERSITY OF DAR-ES-SALAAM

Commemoration of the 50th Anniversary of the establishment of the University of East Africa

Theme:Strengthening the Revival of the East Africa Community

The University of Nairobi in collaboration with Makerere University and University of Dar-es-Salaam cordially invites all the ALUMNI of the former University of East Africa to the Commemoration Date : Saturday 29th June 2013Venue : Makerere University, Main HallTime : 8.00 amGuest of Honour : H.E Yoweri Kaguta Museveni, President of the Republic of Uganda

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DAILY NATIONFriday June 14, 2013 7

BUDGET

BY FRED [email protected]

P olice have been given Sh67 billion to fight crime in the country.National Treasury Cabinet

Secretary Henry Rotich said the economy would rely heavily on improved security.

He said priority would be given to increasing police patrols, researching on crime trends, providing equipment and vehicles as well as building houses for police ocers.

The maintenance of law and order for the safety and security of our citizens and protection of property is a key factor in determining economic stability, encourag-ing investments, accelerating growth and in turn creating employment.

We must therefore do everything possible to ensure security prevails in all parts

of the country and that our economy is not held back from achieving its full potential, Mr Rotich said.

Sh4 billion, he said, would be used to buy security equip-ment, another Sh4.5 billion for enhanced operations, and a further Sh1.5 billion for enhanced crime research and investigation to understand crime dynamics and enable the law enforcers to come up with appropriate strategies for

crime prevention.Sh3 billion would also be

allocated to lease 1,200 police cars every year to make sure there is police visibility in all parts of Kenya.

Another Sh1.2 billion would go into building 2,000 new houses for the officers through the National Hous-ing Corporation.

The amount is just slightly over half of what the Police Service had requested. Inspec-tor General David Kimaiyo had asked for Sh120 billion.

But even though Mr Kimai-yos estimates were slashed, it was still a signicant boost for the police compared to the previous nancial year when it was allocated Sh50 billion.

The previous regime had also estimated that police would need Sh55 billion in the 2013/14 nancial year.

Director of Criminal Investi-gations Ndegwa Muhoro said the funds would be used to boost the forensic capacity of the service.

Focus would be on emerg-ing crime trends and how to tackle them in order to be proactive, he said.

Kimaiyo given Sh67bn to wage war on crime

SECURITY | Amount is half of what the service had asked to be allocated in the next nancial year

ANTHONY OMUYA | NATIONAdministration Police ocers outside Parliament Buildings on Tuesday during a protest by activists opposed to a push by MPs to increase their pay.

Cash to be used on research, equipment, houses and vehicles, says Treasury boss

2,000New houses to be built for police ocers

Sh4bnAmount for buying secu-rity equipment

Sh3bnMoney for leasing 1,200 vehicles for the police

BY NATION CORRESPONDENT

Pyrethrum growers want the government to speed up the revival of the sub-sector by ensuring that the money allocated to the ailing Pyrethrum Board of Kenya is put to good use.

We want the Cabinet Secretary in charge of Agriculture to make sure the money is put to proper use and not diverted like in the past, said Pyrethrum Growers Association national chairman Justus Monda.

Growers happyMr Monda said although the

government has allocated only Sh300 million for the revival of the sub sector, they were happy that the money had given farmers a glimpse of hope.

However, he said this time round, farmers will be vigilant to make sure even the last cent is put into proper use.

Mr Monda said farmers were disappointed that the agriculture budget was slashed by Sh3.5 billion saying this might aect the overall performance of the economy.

When agriculture sector is per-forming well, all the other sectors of the economy pick up very fast and spur development in the entire country, Mr Monda said.

Farmers joy as pyrethrum gets Sh300m


BUDGET

BY MWANIKI WAHOME [email protected]

The government has allocated Sh38.07 billion to the Agricul-ture, Livestock and Fisheries ministry, with the bulk of the funds, for the rst time, being earmarked for development projects.

The 2013/14 budgetary estimates released yesterday indicate that Sh29 billion or three-quarters of the total allocation will cover capital expendi-ture as recurrent expenses take Sh9.8 billion.

The increased development budget comes as President Kenyattas govern-ment seeks to raise production and make food aordable to the majority of Kenyans.

Lumped togetherThe amount allocated to Agricul-

ture is only 3.8 per cent of the Sh1.01 trillion budget a far cry from the 10 per cent the government has been targeting in the last 10 years.

In total, the sector generates 25 per cent of the Gross Domestic Product and provides about 80 per cent em-ployment in rural areas.

In its plan, the government plans to boost production in the sector and turn it into a business venture.

The Treasury says the money will be used to boost sh farming, create ir-rigation schemes, build strategic food reserves and step up research.

Finance Cabinet Secretary Henry Rotich allocated Sh8 billion for irri-gation projects when he read budget

yesterday.Sh2 billion will go to agri-business,

with the aim of growing the fund to Sh20 billion in the fourth year.

Sh3.6 billion will go into the rst phase of 1 million acre irrigation project in Galana. The project is ex-pected to produce 3 million jobs and increase food production.

Mr Rotich said most Kenyans were food insecure, while food items consumed 70 per cent of household budgets.

When food prices rise, it creates agitation for higher wages, which in turn weakens our competitiveness, he said.

The government is set to introduce a Livestock Restocking Development Fund to cushion livestock farmers from losses caused by the vagaries of weather.

To boost production, it plans to vac-

cinate 61 million livestock and expand extension services in pastoral areas. The animals will be vaccinated against foot and mouth and trypanosomiasis diseases.

The government aims to boost extension services to educate more than 5.1 million pastoralists through eld days, shows, farm visits and exhibitions in the coming year.

It plans to rehabilitate 7,500 de-nuded range lands, where most of the countrys meat comes from.

It will also strengthen disease sur-veillance and introduce an advanced reporting system using Digital Pen Technology.

To improve marketing, 21 abattoirs will be constructed and commis-sioned. The government also intends to invest more in the leather sector by training 440 stakeholders on value addition.

Bulk of Sh38bn to nance productionAGRICULTURE | Funds allocation fails to meet the 10 per cent target again

Rotich gives development top priority in a sector that generates quarter of the countrys Gross Domestic Product

n Pastoralism: The ministry will use the money to ght livestock diseases in areas inhabited by pastoralists.n Fish farming: The ministry plans to boost the sector by building more sh ponds.n Irrigation agriculture: It plans to put more dry lands under crops through irrigation.n Disease control: It intends to ght killer diseases that have caused the livestock sector major losses.n Food security: It aims to boost strategic food reserves.

PRIORITY AREAS

Where the funds will be expended FILE | NATION

Livestock traders protest their eviction from private ranches in Taita Taveta early this month. They will benet from abattoirs the government plans to build.

BY NATION CORRESPONDENT

Residents of Muranga County are unhappy with the Sh38 billion allocated to agriculture, saying, it is not enough.

They said the sector needs more money since it is the backbone of the country.

Kigumo ward representative Caroline Njoroge yesterday said she expected the sector to be al-located Sh100 billion.

We need more than Sh100 billion to improve agriculture, irrigation and value addition. Agriculture is the backbone of this country, she said.

Ms Njoroge said many people in rural areas rely on agriculture and more funding would go a long way in uplifting their living standards.

She was against any attempt to tax basic commodities like our, milk and bread, saying that would even lead to hunger.

With many Kenyans even sleeping on empty stomachs, an increase in VAT is outrageous and unfair to the common mwananchi, Ms Njoroge said.

A resident of Kiharu, Mr Ben-jamin Gachagua, said agriculture should have been allocated Sh100 billion. He said the budget ought to have focused on job creation in rural areas by supporting agri-businesses.

Allocation to farming is too low

Amount Muranga farmers wanted for agriculture, which, they argue, is the backbone of the economy

Sh100bn


BUDGET

BY IMMACULATE [email protected]

T he newly-created Min-istry of Mining may not be o to a good start after some of its key activities were left out in budget esti-mates tabled in April.

In the estimates, the minis-try, headed by Mr Najib Balala, and which has the task of pro-moting mineral exploration and mining management was allocated Sh574 million.

It had asked for at least Sh3 billion for plans to develop ge-ological and mineral resource databases, among others.

Airborne surveyAnalysts say that should the

funds allocation in the budget estimates remain unchanged, the ministry may be hard-pressed on which activity to give priority even as a new min-ing regulation that addresses current investor concerns in the sector remains urgent.

The central bit of mining is an airborne survey of min-erals to document what the country has and where they are located. This information forms an important sales pitch to investors, said Mr Osborne Wanyoike, a senior manager for energy and mining at Pricewa-

terhouseCoopers.The budget and appropria-

tions parliamentary committee has proposed that the minis-try be allocated an extra Sh2.8 billion to nance drilling rigs, setting up of a mineral com-modity exchange and doing an aerial geophysical survey.

The committee proposed allocation of an extra Sh2.5 billion for aerial geophysical surveys, Sh150 million for set-ting up a mineral commodity exchange, Sh20 million for buying drilling rigs and ac-cessories, Sh20 million for

field vehicles and an extra Sh10 million for the purchase of water bowsers.

A research analyst at the Standard Investment Bank, Mr Eric Musau, says inadequate funding may cultivate a nega-tive attitude among investors regarding the sector.

Given that all other countries that are exploring minerals have been able to employ technology to map their mineral resources, lack of provision for funds to boost de-velopment of mineral resource databases and the necessary legislation to guide the sector could have negative implica-tions on the yield from local minerals, Mr Musau said.

Dwindling incomesThe ministry has prepared

a mining Bill that is yet to be tabled in Parliament. It seeks to introduce new regulations in the sector with a view of in-creasing government revenue from mining activities.

The Bill, once passed into law, will also see setting up of various institutions such as the National Mining Authority to oversee the sector.

At the moment, the mining industry is regulated through a law enacted in 1940.

Industry stakeholders have blamed the archaic piece of legislation for dwindling in-comes.

The sector cannot raise enough because it lacks the mechanisms for addressing emerging issues.

Poor funding may hurt mining sector

IMPLICATIONS | Investor concerns in industry remain urgent

The draft Geology Minerals and Mining Bill 2012 pro-poses introduction of new mining licences to increase government revenue from the sector. Draft seeks to create Min-

ing Disputes Resolution Tri-bunal headed by legal ocer equivalent to High Court judge. Bill also proposes that 75

per cent of mineral resources belong to national govern-ment, 20 per cent to county government and ve per cent to local community Current Mining Act of 1940

has been reviewed twice; 1972 and 1987

LEGISLATION

Bill expected to revamp sector

Stakeholders blame law passed in 1940 for failure to address key industry issues

GIDEON MAUNDU | NATIONWorkers make nal touches to a mini-port warehouse at the Likoni mainland shore that will be used by Base Titanium for storing titanium sand minerals after mining in Kwale County. Experts have warned that lack of funding in the mining sec-tor could derail investment plans.

BY NATION REPORTER

Stamping out corruption and widening the tax bracket could pro-vide the resources the government needs to meet the rising wage bill and development projects.

Analysts told the Nation that the government could save up to Sh400 billion annually if it sealed loopholes for corruption, got rid of revenue leakages and avoided wasteful spending.

The biggest solution (to the -nancial decit) is to seal corruption loopholes, risk consultant Kariithi Murimi said by phone.

The government will experience further constraints in meeting its nancial needs against a Sh1.6 trillion budget for the 2013/2014 nancial year.

Overall decitWith Sh1.6 trillion in expendi-

ture against total expected receipts of Sh1.284 trillion (including loans and grants), the overall deficit amounts to Sh356.9 billion, which is 8.6 per cent of the Gross Do-mestic Product.

The decit will be covered by net foreign nancing of Sh223 billion and Sh106.7 billion net borrowing from the domestic market.

The government has also set the total revenue estimates for scal year 2013/14 at Sh1.027 trillion, comprising Sh961.3 billion of or-dinary revenue and Sh67 billion of appropriations-in aid.

The targeted revenue is predi-cated on projected economic growth, but takes into account the challenges we have had in the past two years especially with col-lection of VAT.

Sealing graft holes could save revenue

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BUDGET

BRIEFLYNAKURUAccountants seek role in county budgeting

Accountants want the law amended to allow them to take part in the preparation of county budgets. Most of the counties were understaed and lacked skilled manpower to manage huge funds from the national government, Institute of Certi-ed Public Accountants Central Rift Chapter executive ocer Amos Karoki said. Mr Karoki, who spoke in Nakuru Town yesterday, said ICPAK was repre-sented at the national level.

NAIROBIBooksellers oppose tax on essential goods

A booksellers lobby has op-posed the introduction of 16 per cent tax on essential commodi-ties. Kenya Booksellers and Sta-tioners Association said taxation of products that were zero-rated or exempted from tax would com-promise the governments com-mitment to improve the living standards of Kenyans. Chairman Arthur Kamau said yesterday that subjecting books, newspapers, journals and periodicals to tax amounted to double taxation. Printing materials are taxed at the source (country) and impos-ing tax on products produced lo-cally will overburden the already struggling Kenyans, he said.

BY JOSHUA [email protected]

The government faces an uphill task using Sh125 billion to re-alise ambitious infrastructure projects in the current financial year.

Parliaments Budget and Ap-propriations Committee said more cash should be given to the Ministry of Transport and Infrastructure for sucient funding of ongoing road and other infrastructure projects aimed at stimulating economic growth in the country.

Although the Sh125 billion for the docket is the third largest allocation after those of the Teachers Service Commission (Sh143 billion), and the Ministry of Education, Science and Technology (Sh130 billion), the House committee felt the amount was inadequate.

Momentum of investmentsThe team proposed that Sh15 bil-

lion should be hived o from the Ministry of Interior and Coordina-tion of National Government, while Sh5 billion should also be reallo-cated from the Ministry of Defence to the Transport and Infrastructure ministry.

Infrastructure development is outlined as one of the main drivers of the country towards a middle income status by 2030, but the amount allocated to it may not be sufficient. It may reduce the momentum of investments in the sector, said Afrika Investment Bank

analyst Ronald Lugalia. According to Parliaments Budget

and Appropriations Committee report on the estimates of revenue and expenditure for the 2013/2014 nancial year, the poor state of the countrys transport system has been an impediment to businesses and economic growth.

The committee noted that Kenyan roads, especially those in rural areas,

were dilapidated and largely untar-macked. It said this was despite the heavy investment in roads.

Throughout the country, the poor state of the transport system is an impediment to businesses and eco-nomic growth, said the Budget and Appropriations Committee, chaired by the Rev Mutava Musyimi.

The allocation to the Transport and Infrastructure ministry is meant to

operationalise the National Roads Safety Council, develop the second container port at Mombasa port, expand and modernise the Isiolo airport, and establish transport of-ces in counties.

Although no funds have yet been allocated directly towards the imple-mentation of the Lamu Port-South Sudan-Ethiopia Transport project, part of the Sh125 billion could be used for this purpose.

Other projects to be undertaken include the construction of 1,480 kilometres of new roads, rehabilita-tion of 1,900 kilometres, maintenance of 246,000 kilometres of roads, and rehabilitation and maintenance of 3,550 roads in national parks.

Sh125bn for roads insucientFUNDING | Projects vital in stimulating economic growth

Ministry should be given more cash to eectively discharge its mandate,says House committee

The poor state of the transport system is an impediment to businesses and economic growthParliaments Budget and Appropriations Committee

Amount, in shillings, allocated to the Teach-ers Service Commis-sion for the 2013/2014 nancial year

143bnFILE | NATION

A section of Thika Superhighway. Road and other infrastructure projects are aimed at stimulating the countrys economic growth.

The United Nations Office at Nairobi (UNON) seeks Expressions Of Interest (EOIs) from suitably qualified companies who wish to participate in the upcoming bidding exercise for the provision of car-hire transport services to UNON.

1. The Contractor shall provide car-hire transport services for official use to staff members of the United Nations offices at Nairobi (UNON), United Nations Centre for Human Settlements (UNHABITAT), United Nations Environment Program (UNEP) and other UN agencies based at the United Nations Complex in Gigiri, Nairobi, Kenya.

2. The resultant contract will be for a period of one (1) year with a possibility of extension.

Vendors interested in supplying the above goods/services are invited to submit their Expression of Interest by visiting our website (http://www.unon.org/content/expressions-interest), and filling out and returning the Vendor Response Form by e-mail or via fax to the contact person indicated in the EOI form.

UNON subsequently intends to issue a formal Invitation to Bid (ITB) to pre-qualified companies who in the UNONs opinion are capable to provide the goods/services in accordance with the requirements that will be fully specified in the solicitation document.

Information on tendering in the UN Procurement System is available free of charge at the following address. Vendors interested in participating in the planned solicitation process must be registered with UNGM and may wish to visit www.ungm.org for full registration process.

REQUEST FOR EXPRESSION OF INTERESTREF: EOI/UNON/13/027The Institute for Education in Democracy (IED) is a not-

for-profit organization providing non-partisan contribution and leadership in the democratization and governance processes in Kenya and the Africa region through programmes in Electoral Process, Civic/Voter Education, and Research and Dissemination. IED is looking for suitable candidates to fill the following vacant positions:

1. Programme Officer Electoral Process; 2. Programme Officer Civic/Voter Education; 3. Finance & Administration Officer.

Basic requirements for the positions include, but not limited to:1. University degree in the relevant field2. At least 3 years experience in the relevant field3. Experience in civil society and donor environment

Interested candidates should obtain details of respective position specifications, required qualifications, experience, personal attributes and application procedures from our website (vacancies section), at www.iedafrica.org . Applications close on 28th June 2013.

IED is an equal opportunity employer. Qualified women and people with disability are encouraged to apply.

VACANCIES

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As part of our social responsibility Africa Mental Health Foundation provides free information online to all members of the public on suicide, alcohol and substance abuse, depression, old age and Alzheimers disease among other conditions. For more information visit our website at:http://www.africamentalhealthfoundation.org/understandmentalhealth.html

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When Senator Kipchumba Murkomen alleged a conspiracy to cripple the Senate and wind it up, it was an understatement. It seems, indeed, that there is a plan to return Kenya to the constitutional order which obtained between 1960s and 1991.

In an article titled The Role of Senate in the Kenyan Political System, J.H. Proctor Jr observed that a little more than a month after the meeting of the Senate on June 7, 1963, an opposition MP voiced the suspicion that some ministers had a negative attitude towards that House and there was a rumour circulating that the Senate might be washed out.

He further says that in 1964, the Leader of Government Business acknowledged there had been wide speculation as to whether the Senate should be scrapped.

One hopes that what Mr Murkomen said will not prove prophetic. If it does, Kenya may be restarting a cycle of constitutional amendments which commenced in 1964 and ended in 1988.

By that time, among other organs, the Police Service Commission and the Senate had been abolished. The country was a one-party State in which the Attorney-General, the Judiciary and

Auditor and Controller-General had lost their independence.

MPs have made it clear that they consider their House to be superior to the Senate. That notion is now embodied in the Bill on the Division of Revenue which was assented to by the President on June 10.

One hastens to add that the President did not assent to it because he supported it in principle, but rather because he feared there would be a government shut-down if no money was approved by Parliament before June 30.

Legislator Mithika Linturis motion to nullify the Legal Notice which communicated the new salaries of MPs was based on an outdated notion of the supremacy of Parliament.

The disregard for the views of the Senate on the Division of Revenue Bill is based on the same notion.

Before August 4, 2010, the constitution had established a single chamber

of Parliament and a unitary government, the devolved government having been abolished in 1965 through a constitutional amendment.

In 1966, the Senate was abolished through a constitutional amendment. Mr Murkomen was hinting at a similar possibility. Recently, Kiharu MP Irungu Kangatta, informed the country that he would be bringing a constitutional amendment Bill through which he will start a process of abolishing the Senate.

But even if he tables such a Bill and it is passed, by virtue of Article 265 of the Constitution, it will require a referendum to become law.

The 1966 abolition of the Senate was part of a bigger project to dismantle the constitutional order established by the 1963 Constitution. That project was discussed by former Attorney-General Charles Njonjo in an article titled, Recent Constitutional Changes in Kenya published in the 1965 issue of the East Africa Law Journal.

As long ago as 1970, in Ukunda v R, (1970) EA 453, a constitutional court held that in Kenya, we have the supremacy of the Constitution and not that of Parliament or one organ of government.

As the two-chamber Parliament of 1964 found cumbersome the exercise

of the power to amend the Constitution which required it to get the support of 75 per cent of all MPs and 90 per cent support of all senators, it persuaded the two Houses to accept an amendment whereby any amendment to the Constitution would require the support of only 65 per cent of all members of either House.

Once this amendment was passed, the die was cast. Constitutional amendments were passed, thereafter: a) to merge, in 1964, the oces of the Prime Minister with that of an all-powerful presidency;b) to abolish, in 1965, the devolved government then known as regionalism;c) to abolish the Senate in 1966;d) to abolish multpartyism in 1982;e) to abolish, in 1987, the independence of the Attorney-General;f) to abolish, in 1988, the independence of the Judiciary and the Auditor and Controller-General.

It is the undemocratic philosophy embodied in the notion of the Supremacy of Parliament being used now which caused the very suering which led to calls to rewrite the Constitution. For how long will Kenyans continue rewriting their constitutions?

Dr Kuria is a Senior Counsel.

The 1966 abolition of the Senate was part of a bigger project to dismantle the constitutional order established in 1963

GAMES PEOPLE PLAY | Gibson Kamau Kuria

Yes, there seems to be a conspiracy to emasculate the Senate and then kill it

Budget statement a tight balancing act

The rst budget of the Jubilee administration unveiled yesterday was clearly a delicate balancing act between moving to make good on some of President Kenyattas campaign promises while resisting the temptation to splurge.

Finance Secretary Henry Rotich was in the unenviable position of providing funding for a large shopping list of a very expensive campaign manifesto wish-list, while keeping an accountants eye on purse-strings that are not elastic.

To some extent, he succeeded in providing the funds for a large number of ongoing projects and infrastructure projects, education, health, social support, agriculture, job creation and others.

But there were also many areas that were left out or given a fraction of what they really require. It is obvious that in the coming days, weeks, and months, there will be a lot of lobbying by interest groups that feel they were shortchanged.

Parliament has become a key player in the budget-making process and will as much as, if not more than the National Treasury, be the focus of a wide array of lobbyists and special interests groups.

All will be pushing to have their specic needs accommodated as the budget statement and the accompanying pieces of legislation go through the various processes before passage.

It is, therefor,e important that both be insulated from extraneous pressure, especially in an environment where MPs may be tempted to play politics with the budget or to open themselves up to blandishment from powerful lobbies.

It is also evident that there will be debate for some time to come on the measures proposed by the Cabinet Secretary to nance the budget.

Essential consumer itemsA key debate will be on the VAT Bill and other tax measures that will substantially raise retail prices for a large number of essential consumer items and foodstus, hitting hard the pockets of ordinary Kenyans for whom the price of a packet of maize meal, a loaf of bread, or a bottle of milk is essential.

It is yet to become clear exactly how tax measures will aect Kenyans because Mr Rotich was rather economical on full disclosure on the exact proposals he will be presenting to Parliament.

The jury, therefore, is still out on whether the rst budget of the Jubilee administration meets the most basic test of satisfying expectations while demonstrating scal responsibility.

It important that all the tax measures, borrowing and other proposals to fund the record expenditure be made public as soon as possible so that all in Kenya whether ordinary wananchi worried about their daily meal, or giant corporations considering their capital investment options have a clear picture of exactly how the budget aects them.

Meanwhile, it is only fair for all, both citizens and the government, to accept that if the economy is to get back on the desired growth path, there must be sacrices.

But it is pointless to ask citizens to tighten their belts while the government splurges on those in leadership. Those in the Executive and the Legislature must lead by example and exercise frugality in the allotment of their own entitlements.

A PUBLICATION OF NATION MEDIA GROUPLINUS GITAHI: Chief Executive OcerJOSEPH ODINDO: Editorial Director

MUTUMA MATHIU: Group Managing EditorPublished at Nation Centre, Kimathi Street and printed at Mombasa Road, Nairobi by Nation Media Group Limited

POB 49010, Nairobi 00100Tel: 3288000, 0719038000. Fax 221396

[email protected] at the GPO as a newspaper

DAILY NATIONFriday June 14, 201312 | Opinion

TRANSPARENCY AGENDA | Alpha Cond

In December 2010, I became President of Guinea following the countrys rst truly open and democratic elections. I said then that I had inherited a country, not a state. Our economy was in ruins, our people were among the worlds poorest, and our political system had been weakened by decades of corruption, dictatorship and misrule.

It neednt be so. Guinea has vast mineral wealth, the worlds largest reserves of bauxite, and high-grade iron-ore deposits.

Making these assets work for all of our people, rather than only for a few unscrupulous international mining companies and politicians, requires confronting the deeply ingrained corruption found in Guineas politics and business.

But uprooting such corruption can be painfully slow, and is often dangerous. After all, vested interests do not welcome challenges.

Compared to developed countries, rogue actors do disproportionate damage in a country like Guinea. Lack of transparency and endemic economic corruption do not mean only unpaid taxes and a lack of competition; they also corrode the political process and undermine democracy.

It impedes change and opens the door to frustration

and the kind of political tension and regrettable violence including tragic deaths that have recently aected our country.

That is why, tomorrow, I will join British Prime Minister David Cameron at the G-8s Trade, Transparency, and Taxation conference in London. Guineas current agenda mirrors that of the G-8. We both want to work with companies that play by the rules, operate transparently, and pay their taxes.

But there can be no future in the questionable and often criminal deals of the past. Our population is young 70 per cent are under 25. They are eager for change and have no interest in perpetuating the old culture of corruption. Their future is both our hope and our responsibility.

That future will be built on

healthy partnerships between government and the private sector, a commitment to strengthening democracy and transparency, and a focus on using our resource wealth to achieve higher living standards for our people.

We have already made much progress. Guinea has signed up to the Extractive Industries Transparency Initiative (EITI), along with the UK, France, Australia, Norway and the US. We are developing new, equal, and long-term partnerships with responsible global mining companies that ensure a long-term commitment to creating jobs and sustainable, long-term benets for both sides.

We have also insisted on reviewing the legality of mining contracts signed by Guineas previous undemocratic and military regimes, and we have published all of these contracts online for the world to see.

What we need now is the support of developed countries in building a global business climate that permits those who play by the rules to prosper and locks out those who dont.

Too many of the worlds nancial centres enable the predators, who rely on oshore corporate vehicles to mask their identities, to loop their nances through exotic jurisdictions, while using prestigious law rms, accountants, nancial

advisers, and PR rms to give their destructive behaviour a veneer of respectability.

This has created a greenhouse in which corruption grows and ourishes, posing a mortal threat to Africa. Guinea will work closely with the American FBI, the UKs Serious Fraud Oce to expose and root out criminality that threatens the integrity of global markets and African democracy alike.

Guinea appreciates the aid that it receives from the developed world. I hope that donors understand when I say that, while we currently need their assistance, we do not want it. We see our anti-corruption agenda as being simultaneously pro-business and pro-development. We do not want to live in dependence on the generosity of others when our resources can make us prosperous and strong.

When I meet with Cameron, I will not ask him for British taxpayers money. I will ask, instead, that he continues to demonstrate global leadership on transparency and good business governance, which promise to benet not just countries like Guinea, but Britain and the world as well.

Mr Cond is President of Guinea. (c): Project Syndicate, 2013. www.project-syndicate.org.

We in Africa do not crave foreign aid; just assist us to attain self-suciency

President Alpha Cond

Kenyatta National Hospital needs experienced hands

THE CUTTING EDGEBY THE WATCHMAN

VACCINE NEEDED. Recent events, including the closure of the media centre at Parliament, Dave Mungai says, indicate that MPs are determined to vent their anger on anyone they perceive to have played a role in lobbying against their salary demands. They have threatened to reduce the Presidents pay and to lower VAT. And for daring to report this, he adds, journalists are now being threatened. The Acquired Piggy Syndrome (APS), it appears, will be here until the voters nd a new vaccine in 2017, says Dave.

E-mail: [email protected] or write to Watchman,

POB 49010, Nairobi 00100. Fax 2213946.

ITS A NEW CONTRACT. It is absurd for MPs to demand the higher salary earned by members of the 10th Parliament as theirs is a new contract that began following their election on March 4, says Stephen Mutuguta, writing from Mombasa. Their attempt to base the demand for higher pay on an international labour law that says it is illegal to reduce someones salary does not apply in this case. The employer had a right to review their job description and set a new salary. It is only a salary agreed upon and signed that cant be unilaterally reduced.

CONTAIN CROOKS. Why has the Kenya Medical Practitioners and Dentists Board never bothered to act against herbalists who post advertisements oerring cures for all manner of illnesses? asks Joe Mbalu. He is also disappointed by the silence from the Kenya Bureau of Standards as fake substances are sold as drugs. The pseudo-experts continue to eece people after lying to them about wonder cures. They purport to diagnose and administer treatment. They should be easy to nd with their phone numbers on iers.

MURIMAS THE MAN. Now that a vacancy has arisen at Kenyatta National Hospital with the impending promotion of CEO Richard Lesiyampe to Principal Secretary, it should not be dicult to nd a suitable successor, says Charles Ndungu. His choice is Dr John Murima, of the Nakuru Provincial General Hospital. The high level of cleanliness of the facility, including washrooms and wards, rivals the standards set by private hospitals. He also ensures consultants attend to their duties rst before doing private work.

SAFI LANE THE DIRTIEST. How about this for acute irony? Isaac Karani has been amused to note that the intriguingly named Sa (clean) Lane in downtown Nairobi, which links Kimathi Lane and Moi Avenue, happens to be the lthiest area in the entire city centre. It not only has dead rotting rats, but also heaps of faeces and garbage, unleashing a stench so strong it could easily knock one into a coma. The ocials busy snoring on the job should be woken up, he pleads. His contact is [email protected].

INDISCIPLINE REIGNS. Soccer fan Kennedy Butiko, waxing nostalgic, says he misses the good old days when footballers, especially those called to the national team, maintained a high sense of discipline. This is no longer the case as international players shamelessly go clubbing even on the eve of a big match. In the past, clubs employed scouts who would go around nightclubs, ushing out errant players. This way, total discipline was maintained ahead of key matches, he says.

Have an exemplary day, wont you!

Two important events in the past few weeks have re-ignited debate on land justice from the embers of this years election.

First was the release of the Truth, Justice and Reconciliation Committee report, and then last weeks acknowledgment by the British Government of torture and ill-treatment of Mau Mau freedom ghters.

The British colonial and protectorate administrations failed to recognise customary land tenure systems. By 1914, nearly two million hectares had been taken away from Africans. By 1960, European settlers occupied some three million hectares.

To safeguard the settlers possessions, the colonial government initiated a settlement plan for the Africanisation of the so-called White Highlands, as well as an elaborate scheme of constitutional and statutory guarantees of property rights.

In early 1964, President Jomo Kenyatta ordered that all colonial farmhouses, together with 100 acres surrounding them, be reserved for prominent people alongside poor farmers in settlement schemes. From 1965, private companies started buying land, further dispossessing small-scale farmers.

These purchases have been at the centre of cyclical conicts during elections. Many people have been evicted

from their land during such conicts in 1992, 1997, 2002 and 2007.

Civil wars, conicts, migration and involuntary displacements are only symptoms of rising disputes over land, involving direct confrontation over access to key natural resources by capitalist forces both domestic and external.

Land justice remains one of the most vexed public debates in Kenya. It is often emotive, divisive and confounding. Access to, and control of, land has been concentrated among the elite.

Reform measures such as repossessing illegally or irregularly acquired public land as recommended by the Ndungu Commission have remained problematic. Eorts by anti-corruption agencies to do the same have suered a similar fate.

These eorts are frustrated by legal hurdles arising from the sanctity of rst registration of title, irrespective of how

that title was obtained. Although the 10th Parliament

enacted the National Land Policy in December 2009, much of it is yet to be implemented. The policy made several key recommendations aimed at solving land problems. Some of them were incorporated in the new Constitution.

A National Land Commission is in place, mandated to manage land on behalf of national and county governments, investigate claims of historical and present land injustices, rationalise land laws, and create new laws to facilitate the review of all grants and dispositions of public land and establish their legality.

Land lost through past injustices should be restored, the land tenure system reformed to provide security for ownership as well as access and use for the disadvantaged.

Yesterday, Fahamu Networks for Social Justice hosted a national conference of social movements and other actors to review the implementation process of the National Land Policy.

Hopefully, it will spark a conversation between the government, citizens and civil society to enable Kenyans to enjoy the rights and standards enshrined in dierent African Union instruments.

Mr Mwangi works for Fahamu Networks for Social Justice.

DISPOSSESSED | Paul Maina Mwangi

Kenyans seeking land justice, 50 years later

Land lost through past injustices should be restored, the tenure system reformed to provide security for ownership as well as use for the disadvantaged

DAILY NATIONFriday June 14, 2013 Opinion 13

YESTERDAYS TOPIC

Comment on the MPs pay package brokered by the Deputy PresidentLINCOLN KINYUA: He and SRC are cool negotiators, but they were out-smarted by MPs committee who regardless of accepting peanuts stole the show bagging in huge grants, bonus and allowances.DALTON MBONDO: The Hustler

Number One is shooting himself in the big toe.BOB OWINO: I think the MPs should accept and move on.BRUNO MP MWIRIGI: The MPs salary increase through allowances will prompt other sectors to steal

from taxpayers sweat.DAVID MUTHENYA: This is a boardroom deal, whose ner details must be made public to determine if it is constitutional.DENNIS JOHNSTONE ONYINO: Most never expected that to happen.

MOHAMED DIRIYE: If MPs would ght for voters the way they ght for salaries, we would be a First World.BRIAN INEAH: The deal is OK, but untimely especially with regard to current economic turbulence suo-cating the nation.

DEBATE TOPIC

Comment on the Budget Statement that was released yesterdaySend your comments to: [email protected]

T om Bwanas article in the Nation yesterday where he contested Jason Nyantinos opposition to killing foreign news was shocking. That he could go to an extent of doubting any benet our population has gained from foreign news was absurd.

I dont know the age bracket of Mr Bwana, but if he is below 50 years, then such a remark is dan-gerous to his reputation.

Through foreign news, I have known how the shallow interests founded on tribal hatred can be catastrophic to a country and the Rwandan genocide comes to mind. It is through foreign news that I learned from the revolution in North Africa that it is disastrous for a leader to ignore the will of the people since it can explode.

It is through the same news that we know of the advancement in sci-ence and technology which enables us understand how backward we are in areas like provision of ba-sic infrastructure. When America smoked out Bin Laden from his hideout within the vicinity of an army barracks in Pakistan what comes to mind? A government committed to long-term safety of its citizens globally.

Again, if foreign news is useless, how come the top respected global media houses like BBC, CNN, Reu-ters etc specialise in international news and documentaries?

Looking at how the Internet and interactive knowledge data-banks like Wikipedia have grown in popularity, one can be sure that

international borders only exist in our minds and as far as information ow is concerned, Tokyo could be nearer to Nairobi than Kiambu. I wish the foreign news critic would know how foreigners are busy col-lecting information about us.

Through foreign news, they warn their citizens to avoid matatus and use taxis because the former are lthy, and driven recklessly.

The out-of-site, out-out-of-mind business is disastrous in a globalis-ing world and Id rather watch the knowledge-laden foreign news than the monotonous, self-serving antics that emanate from our politicians.

SILAS NYAMBOK, Athi-River

Not an islandI think Tom Bwana misses the

whole point raised by Jason Nyan-tino. Kenya is not an island. What Jason called for was balance be-tween local and foreign content.

When there is a crisis anywhere, Kenya is aected, but what hap-pens in Kisumu does not necessar-ily aect Garissa County.

It is also ones right to fully sing the line up of Arsenal as opposed to that of Harambee Stars. That does not make you less nationalistic.

So, how does naming all the 47 counties add value?

PAUL OKONGO, Kisumu

To the editorThe editor welcomes brief letters on topical issues. Write on e-mail to: [email protected]. You can also mail to: The Editor, Daily Nation, POB 49010, Nairobi 00100. Letters may be edited for clarity, space or legal considerations.

SHORT TAKESTALKING POINT

Rather watch foreign news than the myopic antics of local politicians

FILE | NATIONTV news channels need to broadcast news from all over the world.

Emails from correspondents

More leaders should step forward and promote KiswahiliSeldom do you hear our leaders, especially during

ocial functions, deliver their speech in Kiswahili. They cherish articulating their issues in the Queens language. Yet Article 7 of the constitution is particular about the countrys national and ocial languages.

Section One of the Article states that the national language is Kiswahili and the ocial languages are Kiswahili and English.

Watching Kitutu Chache South MP Richard Onyonka second Budget estimates for the 2013/2014 in Kiswahili last Tuesday, I was impressed that this language which has been relegated to the periphery, is regaining its pride of place. The crispness with which the former Foreign assistant minister articulated his

points in Kiswahili, I believe, won the hearts of many like me.

The ODM Nominated MP Isaac Mwaura and Kwale County Women Representative Zainab Kalekye Chidzuga have also not been disappointing. In the Senate, Migori Senator Alfred Machage too, has not let us down. Former Mozambique President Joachim Chisano, who hails from a non-Kiswahili speaking country, is a prolic Kiswahili speaker.

I urge other parliamentarians to follow suit and emulate the great men and women who have endeav-oured to give Kiswahili its place. If MPs in Tanzania legislate, even the budget, in Kiswahili, why not ours?

MARTIN MWANJE, Nairobi

News that cyclists in Mexico City protested in the nude to demand respect from motorists activated my mind. They must have had enough.

For a long time cyclists in Kenya have been regarded as being of lower status than their brothers and sisters who own four-wheel machines. Yet cyclists not only have the right to use roads, but are fragile.

I used to ride on my errands, but not any more. This was after I kept missing death by a whisker as vehi-cles shoved me o the road into the trenches. Now, my bicycle remains tucked away for fear of an accident.

It is too much to ask from those who seem to own the roads, to allow us to use? This will save foreign ex-change and protect our environment.

JAMES WAKIBIA, Nakuru

Let motorists respect cyclists road rights

Regarding the letter by Stephen Njoroge Gitu in the Nation yesterday, he contends that the trac banner sign erected on Thika Highway, near the eastern by-pass from Ruiru to Nairobi, by Pelican Signs, should read Rush driving kills instead of Rash driving kills, and admonishes the editorial team at Pelican Signs.

I beg to dier. The word rash means ill-considered, hasty, reck-less, imprudent. I believe that is what the banner addresses, and it is correct use of English. If the word rush is to be used, it would have to read Rushed driving kills in order to portray the same meaning.

ROSE MBANYA, Nairobi

Im writing to correct Mr Stephen Njoroge Gitu. There is nothing wrong in using the word rash as used by Pelican Sign; in fact, the intended meaning is better conveyed by rash more than rush. I urge him to upgrade his grammar.

MUIRURI GIKONYO, Nairobi

The word rash means irra-tional and Pelican Signs is therefore innocent in grammar, Mr Gitu!

PETER BUNDE, Nairobi

I agree there are grammatical er-rors in the media, but dier with Gitu that Pelican sign that reads Rash driving kills is wrong. It is not. I even doubt whether rush can be used as an adjective. Lets keep this debate alive but avoid confusing ourselves further.

JERUSHAH KIARA, North Kinangop

We make mistakes as we correct grammar

VIEWER DISCRETION: Our Consti-tution is loud about the freedom of picketing, but annoyingly silent on the manner in which demos should be undertaken. We see extremely eerie protests. Within the public are people, who set sick at the sight of blood, be it as little as out of a small cut. I can only imagine how they felt at the glimpse of the much pigs blood we saw during the two Op-eration Occupy Parliament demos.

I beseech the civil society to at least carry placards branded with the words, VIEWER DISCRETION.

EDMOND NYABOLA, Nairobi

INDIVIDUALISED HELP: The move by some politicians to give a helping hand whenever an individual is in need is heartening, but encourages a lot of laziness. We have seen Presi-dent Kenyatta oering to educate a young humorist. The other day Rachel Shebesh oered to help a girl who was spotted hawking at night It is very humane of them, but how many needy people do we have? In-dividualising help is not the solution to poverty. We can start a scheme to cater for many people, rather than just treating symptoms.

SAIDA APONDI, Nairobi

UNEQUAL CONTESTS: All past and present competitions on TV, radio, supermarkets, newspapers, airlines and the leading mobile se

daily nation friday 14th june 2013

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