Thursday, 26th March, 2015

Your Excellency, Hon.

March 26, 2015 JOINT PARLIAMENTARY DEBATES 2

“once every year-

The Deputy President of the Republic of Kenya, Speakers of Parliament, Members of Parliament, fellow Kenyans, ladies and gentlemen, today, for the second time and in line with my constitutional obligation, I address this Special Sitting of Parliament, to outline the State of the nation in relation to our values and principles of governance, as elaborated in Article 10; the state of the nation’s security, as provided for in Article 240; and our status in fulfilling our international treaty obligations, under Article 132 of our Constitution.

Hon. Members, as we approach my second anniversary as the President, I am pleased to report that the state of our nation is strong. Our economy is growing robustly. Our nation is secure and our place in the community of nations is respected.

In the year under review, we, as a nation, have continued to deepen our democracy and the rule of law. Public participation in governance has grown at all levels, while institutional measures to secure the basic rights and freedoms of our people continue to take root. The year has been laced with robust debates, and sometimes even strong differences of opinion between and within various levels and arms of Government. This is a profound reaffirmation of our democratic ideals. Nonetheless, exercising these

March 26, 2015 JOINT PARLIAMENTARY DEBATES 3 rights and privileges demands from each one of us, particularly us, leaders, to remain conscious of our patriotic duty to nurture a united nation.

Fellow Kenyans, in 2014, Kenya rebased its economy and is now the ninth largest economy on the African continent, with a Gross Domestic Product (GDP) of US$53.3 billion with GDP per capita at US$1,246. Kenya has attained middle income status. We are also one of the African economies that can boast a diversified and broad-based balanced economy.

Today, Kenya is one of the fastest growing economies in the world. Despite sluggish global growth, our economy is steadily expanding at 6 per cent, consolidating our position as the largest non-mineral driven economy in Sub-Saharan Africa. We are also making significant progress in the oil, gas and minerals sectors. Following the establishment of a dedicated Ministry of Mining, our royalties have sharply increased from Kshs21 million in 2012 to an expected Kshs1.2 billion this financial year. This on- going economic transformation is drawing attention globally.

March 26, 2015 JOINT PARLIAMENTARY DEBATES 4 agency. I call upon all Kenyans to embrace the promise of green energy for sustainable development.

Hon. Members, greater supply of electricity has translated into an average reduction in consumer bills by 25 per cent in the period between August 2014 and February 2015. Costs of electricity to industry have also fallen, making the country a more competitive location for the manufacturing sector.

The total number of users connected to electricity grew by over 41 per cent between March 2013 and today, raising the customer base to 3,150,000 Kenyans. This translates to an increase in the national electrification rate from 26 per cent to 37 per cent. In the last three months of this year alone, we have connected 385,000 Kenyans and are targeting to record one million by the end of December 2015, more than double the connections last year.

Across the country, businesses, large and small, are expanding, creating employment and prosperity. As Government meets its end of the bargain in providing cheaper power, it is my expectation that businesses will pass on these savings to the Kenyan consumer.

Ladies and gentlemen, when I took office, I pledged to connect all public primary schools to electricity within two years. At the time, only 8,200 schools out of 21,500 primary schools had been connected. As I speak today, a total of 18,424 schools have been connected.

March 26, 2015 JOINT PARLIAMENTARY DEBATES 5

March 26, 2015 JOINT PARLIAMENTARY DEBATES 6

Furthermore, LAPSSET will deepen regional integration and Africa’s interconnectivity and trade. Recognizing its value, the African Union, at its January 2015 Summit, included LAPSSET in its Presidential Infrastructure Champion Initiative. The administrative infrastructure for this project is complete, and I will, in the next few days, break ground for the construction of the initial three berths of the Lamu Port.

March 26, 2015 JOINT PARLIAMENTARY DEBATES 7

In line with my administration's commitment to improve health care, we have invested Kshs38 billion shillings to roll out the Managed Equipment Services Programme. To effect this, five global suppliers have assessed 94 hospitals in the 47 counties, plus the four national referral hospitals to deliver the necessary equipment starting in May this year. This capacity is the most sophisticated in the region, enabling access to world-class diagnosis and treatment. Our emphasis is on early detection and prevention, so as to avoid the high costs associated with treatment occasioned by late detection. In these hospitals, the equipment purchased will allow for treatment of diseases such as cancer, while providing advanced dialysis, and intensive care facilities in all counties of our country.

With the provision of free maternal hospital services, maternal health has greatly improved. Deliveries in our public health facilities now average 80 per cent. As a result, maternal mortality has decreased from 488 to 360 deaths per 100,000 live births. We have opened many clinics in slum areas such as Mathare in Nairobi through which many Kenyans daily access medical care. Our efforts in this sector are complemented by the initiatives of the First Lady who I commend for the Beyond Zero campaign, which keeps growing from strength to strength in improving maternal and child health across the country.

Hon. Members, all these endeavours are geared towards the Jubilee Government’s commitment to roll out universal health care for all Kenyans. In this respect, I wish to thank the Government of Japan and all our development partners who have been extending support for this initiative. Beginning April this year, the new agreed national health insurance fund rates will be in force, allowing for in and out-patient treatment. To this end, I encourage all Kenyans to enroll with the NHIF and this will ensure that our objective of universal healthcare will be realised.

To promote social justice and inclusivity, my Government is assisting 35,000 self- help groups and continues the promotion of social security to the aged citizens and other vulnerable groups in our society.

The Older Persons Cash Transfer Programme covers 164,000 households, cushioning them against life threatening risks such as sickness, poor health and injuries. In addition, the Government continues to fund the Orphaned and Vulnerable Children (OVC) Cash Transfer Programme which currently covers 252,000 households and 27,000 persons with severe disabilities. We have also launched the health insurance subsidy programme to cover 12,000 households. This programme which benefits the poor has 30,000 principal beneficiaries registered by the National Health Insurance Fund (NHIF). The Government has also established the President’s Secondary School Bursary Scheme which benefits 13,050 orphans and vulnerable children. Overall, close to 500,000 households are benefiting from the Kshs25 billion invested in these programmes.

We have made significant progress also in land reform. The reorganization and clean up and of the Nairobi and Mombasa land registries is complete. We have launched a new National Land Titling Centre, which has processed close to 400,000 new title deeds, which have been issued. In digitizing the process of land ownership, the Nairobi Registry is now complete with citizens able to conduct searches and payments of land rents on line. The digitising of the remaining 13 land registries will be complete by June

March 26, 2015 JOINT PARLIAMENTARY DEBATES 9

Our strong commitment to devolution remains manifest. My administration has ensured and funded counties progressively, increasing from Kshs190 billion in the first financial year, to Kshs226 billion in the current financial year, and projecting Kshs258 billion in the next financial year, all these well beyond the 15 per cent minimum provided for in the Constitution, demonstrating my continued belief in the value of devolution.

We have also established inter-governmental mechanisms to support devolution through enhanced consultation, cooperation and partnership with the counties. As a sign of the growing understanding and partnership between national and county governments, I am pleased to report that IBEC, under the Chairmanship of the Deputy President, concluded an early and harmonious settlement of the Division of Revenue negotiations.

As the chair of the Intergovernmental Summit, I am continuously engaged with the county governments to ensure the success of the devolution dream. In my travels across the country, I have taken pride in the varied projects being undertaken by county governments. I am, however, concerned by the numerous disruptions of the devolution agenda by political conflicts in a number of counties. This month, I reluctantly established a Commission to inquire into the affairs of Makueni County. We have also witnessed intense contestation between leaders in a number of other counties. In Narok, Embu, Mandera, Marsabit and Tana River, among others, ethnicity is being used to exclude, divide and manipulate the people. This trend, unless halted, has the potential to derail the devolution agenda. The aspiration of the Kenyan people was for grassroots development not for ethnic balkanization.

I, therefore, call on all leaders at the county level to be guided by these aspirations and not their own narrow self-interests. We must all remember that Kenya is one indivisible nation and that every Kenyan has a right to live, work and participate in all activities in any part of our country as guaranteed by our Constitution. In this regard, the National Cohesion and Integration Commission must take seriously its mandate to promote and protect the values of cohesion and devolution. Fellow Kenyans, I have since taking office underscored the value of harnessing the capabilities of all Kenyans. Only by doing this can we unleash the full potential of our nation and create the Kenya of our dreams. In this respect, my Government has put special emphasis on the setting up of mechanisms and institutions to guarantee inclusivity. Today, we celebrate nearly two years of the Jubilee Government’s implementation of the Public Procurement and Disposal Act Regulations passed in 2013 that provides access to 30 per cent of Government procurement to women, youth and persons with disabilities.

March 26, 2015 JOINT PARLIAMENTARY DEBATES 10 budgeting and cited as a model that could be exported to other countries in Africa and, indeed, the Commonwealth.

The youth have continued to prove their capability to drive our growth and progress. I have been delighted by the vibrancy of their innovation, energy and commitment. From the innovators at i-Hub, Nai-Hub and the 16 technology hubs, to Equity Bank’s Wings to Fly, Kenya’s youth are proving repeatedly that they are holding the present and future of our nation in their hands. Kenya is becoming a start up nation. In the last year, we have witnessed a growth of homegrown technological innovation of cutting edge global standards. Herein lies an unprecedented opportunity to leverage relevant technology to respond to our needs, drive our economy, job market and improve service delivery. I call upon all Government Ministries and agencies and the private sector to explore these homegrown innovations and to support these young innovators before turning to solutions from abroad.

The National Youth Service (NYS) has become a significant driver of our transformation agenda. Working alongside communities, the NYS youth have become change agents that catalyze improved living standards for the less fortunate particularly in the informal settlements such as demonstrated in Kibera. Similar efforts are underway in Mathare, Korogocho, Mukuru Kwa Njenga and Kiandutu in Thika and will be rolled out across the country. Beyond the cities, the NYS is also engaged in hard risk regions of the country and for the first time, through the efforts of this institution, Lodwar should soon have access to water on a sustainable basis reflecting my Government’s commitment to drive development across the country.

I encourage all young Kenyans to take full advantage of all Government programmes laid out to facilitate their productive integration into national economic life.

In 2013, I appointed a task force to review the operations of parastatals with the aim of reforming them to be more efficient in their pursuit of our national development goals and to align their mandate to the Constitution. The task force has made recommendations to transform our parastatals. The legal framework to guide the envisioned reforms has undergone the requisite stakeholder consultations. Several pieces of proposed legislation including an overarching law on Government owned entities that align these institutions to our national development imperatives, will shortly be forwarded to Parliament for consideration.

Yesterday, I issued, as part of the parastatal reform programme, the Mwongozo Code of governance for State corporations and I directed that all vacant positions in the boards now be filled. I will personally oversee all appointed and currently serving board members formally sign on to the Code. This will address governance and management challenges in our parastatals.

Fellow Kenyans, ladies and gentlemen, I have outlined a number of initiatives that demonstrate the work that the Jubilee Government has done to drive the transformation of Kenya. This progress notwithstanding, our country today is faced with a number of daunting challenges that slow our progress, obscure our achievements and chip away at the legitimacy of the state. The most pressing of these challenges are insecurity, disunity and corruption. In the last year, security has improved and I salute the service and sacrifice of our brave men and women in uniform who risk their lives to protect our way of life.

March 26, 2015 JOINT PARLIAMENTARY DEBATES 11

March 26, 2015 JOINT PARLIAMENTARY DEBATES 12 (Amendment) Act 2014, and the adoption of a national counter-radicalisation strategy, have transformed the legal and policy landscape. We now have a robust and far-reaching legal framework to counter the current threats relating to terrorism. This will go a long way in safeguarding the lives and property of Kenyans and our visitors. In this respect, I wish to express my gratitude to this House for passing this significant legislation.

March 26, 2015 JOINT PARLIAMENTARY DEBATES 13 Kenya’s citizens. These have shaken the nation, excluded some Kenyans from the full promise of citizenship and fractured our national fabric.

We have witnessed violence linked to elections which has left many Kenyans dead, maimed and dispossessed. In 2007-2008, this reached its most tragic expression with the post-election violence that left 1,300 Kenyans dead and more than 650,000 displaced from their homes across the country. Collectively, these incidents have disunited us and held our people hostage to this tragic history by providing the foundation and rationale for cynical and destructive politics of hate and division.

In an effort to confront this past, the Truth, Justice and Reconciliation Commission (TJRC) undertook an inquiry into past injustices. Their report is before this House, and I urge the hon. Members to process it without undue delay.

My fellow compatriots, the Government has made efforts to relieve the plight of victims, particularly those of the post-election violence of 2007/2008. While these efforts have been lauded internationally, most recently by the African Union (AU) report that recognised that Kenya has set a positive standard to be emulated, I recognise that it is impossible to fully compensate for the loss of life and the magnitude of suffering.

Yesterday, I received the Report on the 2007/2008 Post Election Violence Related Cases from the Office of the Director of Public Prosecutions (DPP), a copy of which is annexed to my Report on National Values. In all, there were 6,000 reported cases and 4,575 files opened. It is the opinion of the DPP that there are challenges to obtaining successful prosecutions. These challenges range from inadequate evidence, inability to identify perpetrators, witnesses’ fear of reprisals and the general lack of technical and forensic capacity at the time. Nonetheless, the Office of the DPP recognises there were victims and recommends that these cases be dealt with using restorative approaches.

March 26, 2015 JOINT PARLIAMENTARY DEBATES 14 This will provide a measure of relief and will underscore my Government’s goodwill. I have also established a State Department dedicated to strategic initiatives in marginalised and at-risk regions and populations of our country. It is my hope that these measures will go some way to bringing the nation together as we reach for the prosperity and security that is our common promise.

Fellow Kenyans, the time has come to bring closure to this painful past; the time has come to allow ourselves the full benefit of a cohesive, unified and confident Kenya, as we claim our future. My brothers and sisters, to move forward as one nation, I stand before you today on my own behalf, on behalf of my Government and all past governments to offer the sincere apology of the Government of the Republic of Kenya to all our compatriots for all past wrongs.

March 26, 2015 JOINT PARLIAMENTARY DEBATES 15

Fire them! Fire them!

I do not fire; kazi ni yenu ya kuwatoa. Watoeni ninyi!

From reports I have received, I strongly believe that this is a further attempt to subvert the successful prosecution of the Anglo Leasing cases.

As I have indicated, constitutional office holders, State officers and every public servant are bound by the values enshrined in our Constitution. They are required to uphold the highest standards of personal integrity in the discharge of their official functions. In view of the oath of office that I took as the President of the Republic, let it be known that today, I draw the line. No one will stand between Kenyans and what is right in the fight against corruption and other monstrous economic crimes.

March 26, 2015 JOINT PARLIAMENTARY DEBATES 16 I direct the Attorney General to review the legislative and policy framework to ensure the effective discharge of constitutional imperatives related to integrity.

Three weeks ago, I issued Executive Order Number Six on Ethics and Integrity in the Public Service. In it, I directed any civil servant to get in touch with my office should they receive any pressure to engage in unethical or illegal conduct regardless of the status of the person pressuring them to do so. I want to reiterate this personal commitment which is also provided for in our Constitution.

Honourable Members, the latest report I have received from the Ethics and Anti- Corruption Commission (EACC) contains a catalogue of allegations of high-level corruption touching on all arms and levels of Government. It is the view of the Chief Executive Officer (CEO) of the Ethics and Anti-Corruption Commission that the institution, and especially its Secretariat, is under siege because of the nature of the cases they are currently investigating. I know that Parliament is seized of this matter and urge it to deal with it expeditiously.

Yes! Yes!

March 26, 2015 JOINT PARLIAMENTARY DEBATES 17

Fellow Kenyans, hon. Members, ladies and gentlemen, in view of Parliament’s oversight role and its representation of the people, I would be remiss not to express the disquiet caused by recent events that cast aspersions on Parliament.

Yes! Yes!

As a previous Member, I urge you, hon. Members, to take all measures to urgently restore the dignity and integrity of Parliament. This is essential for an institution whose effective performance is a cornerstone of our democracy.

The war on corruption will not be won unless all arms and levels of Government play their role and uphold the highest levels of integrity and act decisively against any perpetrator of corruption.

Fellow Kenyans, there is no challenge, no obstacle that is too great for us to overcome. An indomitable Kenyan spirit has seen this nation secure its freedom and grow from small beginnings to become a vibrant democratic and multicultural society that is on an unstoppable path towards even greater progress and prosperity, as well as standing bold and strong in the face of seemingly insurmountable challenges.

My administration will continue to personify this indomitable Kenyan spirit. Our commitment to Kenya remains the same: to bring about fundamental positive change in all areas of our national life, in a sustainable and irreversible manner, across the length and breadth of the entire country, without regard to gender, age, religion, colour or ethnicity.

Our beloved nation is well on the path to greater heights. Through our collective effort, our democracy is growing and maturing while our fundamental rights and freedoms are entrenched and safe. The social, economic, and political gains that have been made are cemented and are also irreversible. While a lot of hard work still remains to be done, we, fellow Kenyans, have a lot to be proud of and a lot to be grateful for.

Hon. Speakers, ladies and gentlemen, the state of our nation is strong. Let the love for our country be our guiding light in all that we do. May God bless you all and bless Kenya. Asanteni.

March 26, 2015 JOINT PARLIAMENTARY DEBATES 18

Your Excellency, Sir, unfortunately, we have come to the end of this Special Sitting of Parliament. The Senate stands adjourned until Tuesday 31st March, 2015 at 9.00 a.m. in the Senate Chamber.

Your Excellency Sir, the National Assembly stands adjourned until Tuesday 31st March, 2015 at 2.30 p.m.