Tuesday, 26th May 2026

Hon. Members, we have quorum to transact business.

Hon. Speaker, I introduce to you Mr Keter David Kipsang, Member of Parliament-elect for Emurua Dikirr Constituency.

Are you a Christian?

Yes

Take the Bible in your right hand, raise it and recite this Oath. Use the microphone.

The Oath of Office was administered to Hon. Keter David Kipsang.

Congratulations. You may proceed to sign the Oath.

you can assign committees to the Member for Isiolo South and the Member for Emurua Dikirr, so that they can start their work in earnest.

Next Order.

Other priority business includes the consideration of a Public Petition on access to health care by cancer patients in the country, the consideration of the Fisheries Management and Development Bill (National Assembly Bill No.29 of 2023), and the Quality Health Care and Patient Safety Bill (National Assembly Bill No. 41 of 2025), in the Committee of the whole House. The House will also consider a Special Motion on the nominee for appointment as High Commissioner to Canada.

Hon. Members, we are also reminded that this year's National Prayer Breakfast is scheduled to take place on Thursday, 28th May 2026, at the Safari Park Hotel, Nairobi, at

to the occasion so that together, we deliver on the legislative mandate of this House, in line with the Constitution. This House is informed accordingly.

All Members who wish to talk to this petrol issue, will be assigned time this afternoon after the notice has been given to the Motion. I encourage you, as Members whose mandate is to represent the people of Kenya and who are privileged to represent 55 million Kenyans, to speak soberly, without incitement and emotion, so that together and collectively, we assist our country to move forward. We know we have a problem but is not only limited to Kenya. It is a global issue. Kenya however, must rise to the occasion and find solutions to its unique problems through the people's representatives who, for the time being, are privileged to be you, Members.

Thank you.

Thank you, Hon. Speaker. I take this opportunity to welcome Alliance Girls’ High School to Parliament. This is where laws of this country are made and the future of Kenya is guided from. Alliance Girls’ High School is one of the prestigious schools in this country. We know that it has produced so many doctors, professors, engineers et cetera. There is no limit to your success. Because you are being modelled from a very prestigious institution, it is upon you to grasp the opportunity and advance your future which is very great. I am privileged today because my daughter, Ivanna Alex Rindikiri, is part of this school.

Hon. Rindikiri, ordinarily, you should have taken the opportunity to welcome all the other schools, but you have not done so. Hon. Murugara, welcome the other schools for a minute.

Thank you very much, Hon. Speaker. Allow me to welcome all the schools that are in the Speaker’s Gallery and Public Gallery, including the famous and prestigious Alliance Girls’ High School. We have schools from Ol Kalou, Mumias and Kimangao Girls Secondary School from Mwingi North. It is just near Tharaka, where I represent.

I am proud to see the little girls from that school. It is well known. They do so well. In fact, a senior sister of mine joined Form 1 in 1977 and finished in 1980. So, I am proud of that school. I welcome them here, today, to observe what their leaders do. I assure all of them that they are the leaders of tomorrow. Study well, go to the university and thereafter, aspire to become leaders of this country.

Thank you, Hon. Speaker.

Thank you, Hon. Members. I have also been requested by Hon. Julius Ole Sunkuli to acknowledge the many members of the community of Emurua Dikirr, who are in the Gallery, escorting their newly elected Member.

Hon. Speaker, I want to thank you for this opportunity and for acknowledging our people from Emurua Dikirr. I also wish to congratulate our colleague, Hon. David Keter alias Dollar line.

I think you can see the people in the Speaker’s Gallery and, even more, at the Public Gallery. That is a testament to the fact that we, the people of Trans Mara, are extremely glad that the elections ended peacefully. Emurua Dikirr has gone through a painful season, mourning the death of our former colleague, the late Hon. Johana Ng’eno. We hope that with the election

of Hon. Dollar line, we will open a new chapter. This was part of my constituency, and most of the people who have come today are from my Constituency.

In the group is the Deputy Governor of Narok, Hon. Tamalinye; former Councillor, Kimintet and Elder of Trans Mara, Ole Kijabe and other prominent people from Transmara. We consider this to be our success, and wish Hon. David Keter success. I thank the people of Emurua Dikirr for completing this exercise peacefully.

Thank you, Hon. Speaker.

Hon. Richard Yegon, a minute. Give Hon. Richard Yegon the microphone.

Thank you very much, Hon. Speaker, for also giving me this opportunity to contribute and welcome the new Hon. Member. He has a lot of similarities with...

Physical or intellectual?

I would like to congratulate him for being elected as the Member of Parliament for Emurua Dikirr. He has a lot of similarities with me, not in terms of how we look, but the number of times he tried to be elected as a Member of Parliament. Personally, I tried three times as he did, and the fourth time, he managed. I would like to ask him to work smartly, so that at least, he can continue representing the people of Emurua Dikirr. He is welcome to this august House. Represent the people of Emurua Dikirr very well, my friend. We are here to guide you and we will assist each other going forward.

Thank you very much, Hon. Speaker.

Hon. Kipchumba.

Hon. Speaker, on my own behalf, and that of the people of Marakwet West, I would like to congratulate Hon. Keter alias Dollar line, on being elected as the Member of Parliament for Emurua Dikirr. Hon. Johana Ngong was my good friend and a political mentor. For that reason, I have no doubt that the new Member of Parliament for Emurua Dikirr will fill his shoes and deliver for the people of Emurua Dikirr.

Hon. Keter, I wish you the very best. Stand firm, be bold and leave a legacy in this Parliament. When your time comes, and you serve your term, may you tell the people of Emurua Dikirr, just like Julius Caesar said: “Veni, vidi, vici.” That you went to Parliament, you saw, and you conquered.

Congratulations.

That is not the correct translation.

Thank you very much, Hon. Speaker, for giving me the opportunity to warmly welcome the new Member, and to congratulate him. I just have a small point of information that I would like to share with him which I invite him to follow up on. On behalf of the Departmental Committee on Sports and Culture, we engaged with the Sports, Arts and Social Development Fund (SASDF) and the Ministry of Sports, Culture and the Arts, to have a musical extravaganza incorporated in their annual programme, on the basis of a directive given by His Excellency, the President when we were burying Hon. Ngong.

It is up to you to follow up with the Committee to see that the funding is secured. We requested that it be formalised, and not left on an ad hoc basis. I hope you will work with the Committee and the other interested parties. Ngong really loved Benga music. For your information, I paid his school fees at the University of Nairobi, on the instructions of the late Raila Amolo Odinga. We specifically, created that constituency for him.

Thank you very much.

Last, Hon. (Amb.) Sigei.

Thank you, Hon. Speaker, for this rare opportunity to join my colleagues to congratulate my friend and neighbour, Hon. Dollarline David Keter, and wish him well. As you may have seen in the media, Emurua Dikirr by-election was one of the gruelling battles. I want to thank the late Ng’eno posthumously, for doing a very good job. I ask and request the new Member to serve the people of Emurua Dikirr without any partiality. He is my neighbour. I am always there for him, and we will work together. I wish him well.

Thank you very much.

Thank you. Next Order.

Leader of the Majority Party.

Hon. Speaker, I beg to lay the following Papers on the Table:

I do not know why the Minority and the Majority Whips, Hon. Millie and Hon. Osoro, are insisting that the girls from Alliance Girls High School have left. They are behind here waiting for the Member of Parliament for Kikuyu Constituency to take a photo moment with them and buy them lunch. These are our children. This school hosts students from every corner of this country, being a national school. Therefore, it is not a school that belongs to Kikuyu Constituency. It is a school…

Yes, Hon. Millie, what is it?

Thank you, Hon. Speaker. I came running from where I was because I was listening to the Proceedings online. And because we are talking about Alliance, Ol Kalou and another girls’ school from Ukambani, yet the only people speaking are men, I also want to ask: is it in order for Hon. Kimani Ichung’wah to keep boasting about Alliance simply because it happens to be in his Constituency and his village? Yet even my own Constituency has people in Alliance. But do we say?

He has just said so. On the issue of no woman Member of Parliament welcoming the students, the Speaker does not prod anyone to speak. No lady Member of Parliament volunteered or sought the attention of the Speaker.

Thank you, Hon. Speaker, for seemingly defending me. If Hon. Millie was listening, I was simply appreciating that Alliance Girls High School hosts girls and students from across the entire Republic of Kenya. It is actually the only school where you will find a child from almost every constituency. This school has challenges. Last year alone, they admitted an additional 600 girls. In fact, when Alliance High School was celebrating…

Hon. Ichung’wah, I am a living witness. Yes. There is a boy from Bungoma who lives in Naivasha. His daughter got very high marks and was not selected anywhere. Yet she had chosen Alliance Girls as her first choice. I bumped into this young man in Naivasha during one of our meetings. He came to me crying. I picked up the phone and

called the principal. She told me, “Although the class is full, I will take that one child.” And she took the child. The girl is now in Alliance and I am paying fees for her.

I think the House deserves to foot-thump for the Hon. Speaker for sponsoring that girl from Naivasha to attend Alliance Girls High School. You know, the Member for Naivasha may not even have had knowledge of this. It is good for you, at times, to step in. Because not all your Hon. Members will have the empathy to sympathise. There are some Members, Hon. Speaker, based on whom they walk with, who will think about where that girl came from. That the girl’s father came from Bungoma. So, they would not even consider sponsoring that girl.

Thank you, Hon. Speaker, for sponsoring that girl from Naivasha to Alliance Girls High School. I hope we can all do that. It has taken the intervention of His Excellency the President to help build new dormitories to accommodate these extra numbers.

Hon. Speaker, all these schools, including the schools in the gallery, visit this House because they want to learn what we do here. It is good we are encouraging these young ones to come to the House. I must thank you, Hon. Speaker and the Commission for always availing the facilities for our students to come and learn. This is so that they do not fall into the temptation of some of their leaders today, who are misinforming the country on what is going on.

It is sad that there are senior lawyers who have served in this House for a long time, portending that the Finance Bill coming before the House, which is lined up for First Reading today, has provisions converting freehold land to leasehold and taxing land. I want to encourage Kenyans, just like these students are coming to learn, to take time and familiarise themselves with the provisions contained in Bills. They are freely available on the Parliamentary website, including the Finance Bill.

I have seen a lot of misinformation on social media. In fact, there is one person from Hon. KJ’s Constituency. I think he is called Kinuthia Finya-something or Fanya-nothing. I do not know. The Member for Dagoretti South tells me that the man is vying for a Member of County Assembly seat in Dagoretti South. I saw him in a clip in the social media telling Kenyans that all freehold land will be converted into leasehold through the Finance Bill, and that people will start paying taxes for it yet the Finance Bill has no such provision. We have no Bill before the House with such provision. I have seen another one today circulating something they portend to be the Finance Bill. They even colour-code clauses that do not exist and circulate them on TikTok.

Hon. Speaker, that is why I must thank these schools for bringing their students to the National Assembly, so that they understand that when a Bill comes for First Reading, it is only the Clerks-at-the-Table who read the title of the Bill, conduct the First Reading and put it down. When the Bill comes for Second Reading, we debate it as published, informed by what Kenyans said during public participation. We then factor in what they said during Committee of the whole and finalise it.

Hon. Speaker, you remember during consideration of the 2024 Finance Bill, because of the misinformation and disinformation that had gone around, when we voted for the Second Reading of the Bill, many Kenyans believed that was fait accompli. That the Bill had now passed and nothing was ever going to change. Kenyans did not understand that we debated the Bill as published and were informed by public participation. We later move to the Committee of the whole House and finalise consideration of the Bill in the Third Reading. We should request the Office of the Clerk to allow students who visit the Chamber to sit for longer periods, so that they understand the entire process of law-making. They should not believe the things

they see on TikTok. They should understand that law-making is a process. I say that because Hon. Millie noted that students from the Alliance Girls High School have already left.

We will go through the processes and Motions of the House. I invite all Kenyans not to believe the misinformation and propaganda all over social media. I ask the Member for Dagoretti South, Hon. KJ, to educate that aspirant for the Member of the County Assembly (MCA) in his constituency. I know you paid his bursary. I will not ask you to recall the bursary, but you told me that he was a paralegal who attempted to go to university to study law. In law school, you learn how to process Bills through Parliament and how to read. Educate him. If he does not understand English, you can do it in Kikuyu. I know you speak very good Kikuyu.

Thank you, Hon. Speaker.

Yes, Hon. Junet.

Hon. Speaker, I want to add my voice to what the Leader of the Majority Party has raised. Before that, I want to alert you that Hon. Keter, who has just been elected, has just left. I wanted to congratulate him before he went out. I wanted to mention how difficult it is to come to this House. I recently travelled to Bomet and met one of my colleagues, whose name I do not want to mention. He told me that he told his constituents in the last election that if they did not elect him to Parliament, he would die. So, he consulted me and asked me what he should tell them in 2027. I told him to be like Jesus and tell them that he has been resurrected. He should say that he died and has now come back for the second time. He is a First-Term Member of Parliament. I told him to tell them that he is coming back for a second term and that he will heal all of them and make them happy.

I am happy that we are back in Session because the Leader of the Majority Party has raised serious issues.

Hon. Speaker, tell Hon. Kururia to give you some time.

Yes.

We are discussing this matter of land leases and land-buying companies.

The two of you are not saying that we cannot amend the Land Act through the Finance Bill. The Finance Bill is not a Statute Law (Miscellaneous Amendments) Bill.

Correct. Hon. Speaker, you can check Parliament’s records from two years ago. The former Attorney-General and former Speaker, Hon. J.B Muturi, forwarded to Parliament a Land (Amendment) Bill that sought to turn all freehold titles to lease-hold titles. In its wisdom and under your leadership, Parliament refused

to publish that Bill. Hon. JB Muturi is now saying that we want to change the law. I have a copy of that Bill.

I rejected the Bill. It did not go beyond my desk.

You rejected it. You did not even allow for it to be published. I look at people and wonder whether they lack content or strategy. What is happening with the current opposition in the country? They are telling Kenyans that the Finance Bill seeks to introduce taxes on bread and tea. That was contained in the Finance Bill of 2024. The current Finance Bill does not contain anything of that nature.

We should not misinform and disinform Kenyans. I do not know whom we can send to educate them. Hon. Ndindi Nyoro can go and convey to Kenyans this message on our behalf. He interacts with them sometimes. I am told that he will soon become a party leader. He can hold bilateral discussions at that level. I want to urge my colleagues and fellow leaders to first take time to read the Finance Bill before they misinform and disinform Kenyans. If you have no time to read it, please, ask your staff and researchers to read it for you before you speak to Kenyans at any level.

Some of the issues being discussed concerning the Finance Bill are purely meant for incitement and nothing else. The endgame is to incite Kenyans, so that they can rise up and fight each other. There is no reason why a leader of the calibre of a Senior Counsel would mislead Kenyans. I saw Senior Counsel Paul Muite tweeting that all freehold land titles will be changed to lease-hold titles. I was shocked. He was a Member of Parliament for many years and a Chairman of the Law Society of Kenya (LSK) . He is the last person who should speak with such ignorance or misinformation.

Let us not disinform and incite Kenyans. Let us not lie to Kenyans and use them as political pawns. That is what is happening in our country. Parliament should officially communicate to Kenyans on the contents of the Finance Bill. I have gone through the Finance Bill and it does not contain anything offensive to Kenyans. On the contrary, it is making their lives even better. The Finance Bill is making tax payments easier and more predictable. The people who are financing the protests by the small taxpayers are the big taxpayers who want to hide behind the small taxpayers and not pay their taxes.

In conclusion, a group has decided that we will not speak about anything else except the Finance Bill to incite Kenyans. My friends, tunawangoja.

Hon. Murugara, Chairperson of the Departmental Committee on Justice and Legal Affairs.

Thank you very much, Hon. Speaker. Kindly allow me to say one or two things.

No, I have given you an opportunity to table a document.

Only that?

Yes.

Thank you, Hon. Speaker. I would have loved to tell Kenyans to emulate the Cabinet Secretary, Hon. John Mbadi, who was at Jeevanjee Gardens this morning speaking to Kenyans at the grassroots level.

I saw it.

All leaders, including Cabinet Secretaries, some of whom I must term as lazy, should go out there and explain the contents of the Finance Bill. We should not just sit back while Kenyans are misinformed and lied to. They end up swallowing those lies and misinformation hook, line and sinker. Let us inform Kenyans so that they know what is in the Finance Bill.

Thank you, Hon. Murugara. Is the Chairperson of the Departmental Committee on Defence, Intelligence and Foreign Relations present? Hon. Caleb, are you the one holding brief? Go ahead.

Yes, I am holding brief for the Chairman of the Departmental Committee on Defence, Intelligence and Foreign Relations.

I beg to lay the following Paper on the Table: Report of the Departmental Committee on Defence, Intelligence and Foreign Relations on the approval hearing of Mr Humphrey Mulongo Wattanga, EBS, for appointment as the High Commissioner to Ottawa, Canada.

Before we call the next Order, Hon. Members, allow me to acknowledge students seated in the Public Gallery from the following institutions:

Committee on Defence, Intelligence and Foreign Relations.

I beg to give notice of the following Motion: THAT, taking into consideration the findings of the Departmental Committee on Defence, Intelligence and Foreign Relations in its Report on the approval hearing of a nominee for appointment as High Commissioner to Ottawa, Canada, laid on the Table of the House on Tuesday, 26th May 2026 and pursuant to the provisions of Article 132 (2) (e) of the Constitution, Section 20 (2) of the Foreign Service Act (Cap. 185E) and Section 3 and Section 8 of the Public Appointments (Parliamentary Approval) Act (Cap. 7F) , this House approves the appointment of Mr Humphrey Mulongo Wattanga, EBS, as High Commissioner to Ottawa, Canada.

Hon. GK, Chairman of the Departmental Committee on Transport and Infrastructure.

Pursuant to Standing Order 33 (1) , I rise to give notice of a Motion seeking the adjournment of the House to discuss a definite matter of urgent national importance. It is about rising fuel prices and attendant repercussions on the transport sector and the cost of living in this country.

THAT, aware that sustained increase in fuel prices has resulted in higher public transport fares, increased costs of goods and services, and mounting pressure on households and businesses across the Republic; concerned that the transport sector that is a critical enabler of economic activity continues to bear the greatest burden of escalating fuel pricing costs; and, recognising the urgent need for policy interventions to cushion wananchi and stabilise the economy, I request that this House adjourns its normal business to deliberate on this matter of immense national concern. Thank you, Hon. Speaker.

Who supports that Motion?

Hon. Members, allow me to inform the House of the passing on of Hon. Mzee Patrick Wangamati Kimingichi, who was a Member of this House in the 11th Parliament. Mzee Wangamati was nominated to this House by the FORD–Kenya Party. He served in this House and I think he was the oldest Member of the House at the time. He passed on last week. He served on the Departmental Committee on Agriculture and Livestock and was very active. He is distinguished as the first Mayor of Webuye Municipality. He was also a very active member of various organisations including being the Chairperson of the Luhya Council of Elders.

On my behalf and on behalf of the House, we send our collective condolences to the family. I request us to be upstanding to observe a minute’s silence.

May his soul rest in eternal peace, amen. Next Order. Hold on, Leader of the Majority Party. Yes, Hon. Tongoyo.

Hon. Speaker, we have jumped Order No. 7 on Questions and Statements. There was a slated Statement from the Member from Turkana.

There are no Statements listed today. It will be listed for Thursday. Did you have a response? You will do so on Thursday. Leader of the Majority Party.

Okay, sorry.

I beg to move the following Procedural Motion:

THAT, pursuant to the provisions of Standing Order 120, this House resolves to reduce the publication period of the following priority Bills from 14 days to 6 days:

Hon. Speaker, I second.

Hon. Irene Mayaka, take your seat. Hon. Weytan, take your seat.

Do I put the Question?

Yes.

Next Order.

I do not see the Chairman of the Departmental Committee on Health, Hon. Nyikal, where he usually sits. Is he sitting elsewhere in the House? Is there any member of the Committee that has been tasked to reply?

You are not ready to reply, Hon. Martin. Do you not have the authority to reply? We will defer the matter to Thursday, 28th May 2026. Next Order.

Chairperson, Budget and Appropriations Committee. Leader of the Majority Party, are you seized of the matter?

Yes.

Go ahead.

Hon. Speaker, I beg to move …

Hon. Members, as the Leader of the Majority Party moves the Motion at Order No.15, which has a direct consequence on Order No.16, if it is the potential decision of the House not to agree with amendments of the Senate to the Division of Revenue Bill, then we need not go to the Committee of the whole House. We will then have to truncate the Motion

and direct the Leader of the Majority Party to liaise with his counterpart to initiate a mediation process. You may proceed.

Hon. speaker, I beg to move the following Motion:

THAT, the Senate amendments to the Division of Revenue Bill (National Assembly Bill No. 2 of 2026) be now considered. Consequent to the Committee Report that I just tabled on behalf of the Chairman of the Budget and Appropriations Committee, the Senate amendments are basically doing two things.

One, the Bill as passed by both Houses did not factor in Ksh8.94 billion that was to transition the Universal Health Care (UHC) workers into permanent and pensionable terms as proposed by the Commission on Revenue Allocation (CRA) and the Council of Governors as equitable share. This has since been factored in in the Annual Estimates as part of the shareable revenue, or rather as part of the Estimates for the State Department for Medical Services as a conditional transfer to county governments. The Senate also did not take care of that. These healthcare workers under UHC had been promised to be converted into permanent and pensionable staff. Therefore, we must fulfil that promise and that is why it has already been catered for under the Annual Estimates. However, they sought to introduce a new Clause 5 that seeks to protect any shortfall in revenue in the course of a financial year. It states that the national Government will bear any shortfalls in revenue in the course of the year if revenue collection underperforms.

The Budget and Appropriations Committee does not agree with the Senate on this particular issue. It is because they say that if there will be any downward adjustment in the national government budget, as a result of such a shortfall, then it will occasion additional borrowing to finance that gap. We may also need to increase taxes to be able to finance such a gap! And as we know, Kenyans are not very keen on any additional taxation measures.

Fundamentally, the Senate proposes to increase the shareable revenue from what is provided for in the Estimates of a figure of Ksh420 billion to Ksh454.74 billion. Therefore, they are increasing the shareable revenue by a further Ksh34.74 billion. They propose that this shareable revenue being increased as part of the equitable share for county governments be deducted from the national Government shareable revenue.

What that means, for the benefit of the Member for Kisii County, Hon. Donya; and, Member from Meru, Hon. Dorothy Ikiara, is that if Ksh34 billion is to be deducted from the national Government share of shareable revenue, even Hon. Osoro and Hon. Millie Odhiambo will lose, because it will mean we have either to reduce the National Government Constituencies Development Fund (NG-CDF) , the National Government Affirmative Action Fund (NGAAF) ...

Leader of the Majority Party, that is a clever way of calling Members to order.

Yes, Hon. Speaker, because I could hardly hear myself. Hon. Osoro speaks to Hon. Millie in a very animated manner. He distracted me.

The Senate has proposed that the national Government gives in. The national Government share of revenue is what NG-CDF and NGAAF shares from. It is what the Ministry of Education shares from for capitation in schools as children open schools. It is what we will give to the UHC workers and it is what will take care of the completion of projects. I draw the attention of Hon. Members that this the last substantive Budget in this Parliament. The next Budget that we will do in March/April next year will be implemented from 1st July when we will be out there campaigning. If you have projects that you want to complete under the national Government, this is the Budget to complete them. I think I have communicated effectively in terms of what you want to do with these Senate amendments.

The Budget and Appropriations Committee proposes that we decline the Senate amendments to allow us to go into mediation and agree with our counterparts in the Senate. It will not be fair to reduce the national Government's share by Ksh35 billion and then in the same spirit say that in case of any shortfall in revenue, only the national Government will bear it.

Hon. Speaker, we live in very uncertain times. Six months ago, we did not know there would be war in the Gulf Region. We never imagined that anyone could close down the Strait of Hormuz. We assumed things would move on normally. Today, we are confronted with a global crisis around the Strait of Hormuz and the war in the Middle East. The disruption of trade routes in and out of the Middle East and connecting to Europe and Asia will have ramifications not only now, but also for many months to come.

We do not know when this war will end. Therefore, when we talk about a possible shortfall in revenue projections, it is a possibility. If we say that only the national Government will bear that shortfall, then a few months down the line, we will have a Supplementary Budget that cuts even more from the national Government’s share and expenditure for this financial year. These are not ordinary times. They call for leadership.

In reference to what Hon. Junet said, if you truly desire to lead this country and have served in this House either for 15, 20 or 30 years, then you know what must be done in times of crises. During the COVID-19 pandemic six years ago, we came together as a nation and took painful but necessary measures. We are confronted with a similar moment again where we have taken painful measures. I hope we will have an opportunity to speak to that when we debate the Motion by Hon. GK. Let me not get into it.

I urge the House to agree with the Budget and Appropriations Committee that we decline the Senate amendments. This will allow the two Houses, together with the Council of Governors, Commission on Revenue Allocation (CRA) and the National Treasury, time to go through mediation and conclude this Bill as quickly as possible. We cannot finalise the Appropriation Bill without resolving this matter. The earlier we go into mediation, the better.

With those remarks, I beg to move and request Leader of the Minority Party to second the proposal by the Budget and Appropriations Committee.

Hon. Junet.

Hon. Speaker, I stand to second. I agree with Leader of the Majority Party that we live in difficult times. As he said, six months ago, nobody knew the world would be what it is today. It was unforeseen because we thought there would be no war in the Middle East, the Strait of Hormuz would not be closed, and life would be good as it was.

Now that we are in difficult times, it is prudent for us to show leadership. Mediation is provided for in our Standing Orders. There is no harm in allowing the Senate and the National Assembly to sit together and analyse this matter deeply and holistically, taking into account the realities in the world today. Because of the current global situation, the Government has taken additional measures to cushion Kenyans, especially on fuel prices. Therefore, I agree with Leader of the Majority Party that this matter should proceed to mediation, so that we come

up with a more informed and comprehensive decision than the one taken in the last Session during consideration of the Division of Revenue Bill.

With those few remarks, I second and urge Members to support the proposal so that the mediation process can be expedited and the Report tabled before both Houses as fast as possible.

Members on their feet, take your seats. Hon. Kururia, take your seat.

I can see Hon. Ndindi Nyoro wants to speak.

Thank you very much, Hon. Speaker, for giving me this chance to contribute. I call upon Members of the National Assembly, as this matter heads to mediation, to be considerate to county governments.

There has been rise in Kenya’s revenues from the last financial year to the current one, nominally around 8 to 10 per cent. We will now consider a Budget of around Ksh4.8 trillion, which is a figure this House has never considered before. Therefore, my call is that we must support devolution and be seen to support it. We have maintained the county equitable share at Ksh420 billion, the same amount allocated previously, and we are proposing to sustain it. That is not fair, especially given that the inflationary pressures are over 5 per cent. As we consider these matters, let us not personalise them. When we personalise matters like we are giving money to specific governors, we become subjective.

On a point of order, Hon. Speaker.

Yes, there is a point of order.

Hon. Speaker, first, we have not yet voted on whether this matter should proceed to mediation. You have not put the question.

Second, I want to inform the House that it increased the counties’ shareable revenue from Ksh385 billion to Ksh415 billion in the last financial year. It is on record. We are the owners of devolution. We know how it works and we support it. That is why we are proposing mediation. The Senate has proposed increasing the figure to Ksh454 billion, but not the National Assembly. That does not mean we have to agree with them entirely. We can increase or reduce the figure in accordance with what is possible. However, let us not politicise this process.

Point of information, Hon. Speaker.

Yes, Leader of the Majority Party can inform me. He is the distinguished former Chairman of the Budget and Appropriations Committee, but not the one we removed.

Hon. Speaker, I want to inform Hon. Junet that the former Chairman of the Budget and Appropriations Committee, Hon. Ndindi Nyoro, stood in his place in this House last year when we were passing the shareable revenue and portended that this was not the only amount being taken to the counties. If I remember well, he spoke of Ksh476 billion. It is in The Hansard.

In the same spirit, using Hon. Ndindi Nyoro’s words, when I was moving the Motion, I said there is Ksh8.94 billion that had been left out in the Bill by both Houses. Therefore, speaking of only Ksh420 billion is being intellectually dishonest. He knows that. There is nothing more dangerous than when those who know better misinform the country for political

gain. Hon. Ndindi Nyoro knows that the Ksh428 billion, as proposed, is not the only money that goes to counties.

Two, I want to inform Hon. Junet that when we sat with him under the broad-based government arrangement, part of the 10-point agenda was to progressively move the shareable revenue to over Ksh450 billion. We are working on that and we are on course. We must be reasonable as leaders. As I said earlier, this is a time that calls for leadership and not political posturing. The easiest thing to do is to posture politically. That is why Hon. Ndindi Nyoro purportedly wrote to you to recall the House when he knew that he cannot even recall the Muranga County Assembly, leave alone the National Assembly. It is good that in the Clerk's advice to Hon. Ndindi Nyoro, he informed him that even if you were to recall the House, the House would ideally have sat today from the date when he wrote the letter. If the Leader of the Majority Party or the Leader of the Minority Party were to request for the recall of the House, the House would have sat today, which is the same day we were supposed to resume business. Therefore – I do not want to call my brother dishonest – political posturing is a very dangerous thing at a time when the nation is calling for leadership.

Hon. Nyoro Ndindi.

Then wind up your point of order.

Hon. Speaker, I wind up by thanking the former Chairman of the Budget and Appropriations Committee and the Leader of the Majority Party for informing me properly on issues that are important.

In conclusion, Hon. Ndindi Nyoro is talking about governors. We are not discussing what governors are going to get. That will come in the County Allocation of Revenue Act (CARA) from the Senate. As the Leader of the Majority Party has affirmed, we are on course as the broad-based Government. We have increased the shareable revenue from Ksh318 billion to Ksh415 billion.

Order, Hon. Irene Mayaka! What you have done is not right. Procced, Hon. Junet.

Hon. Speaker, one of the agenda in the broad-based government covenant is to strengthen devolution. In the last Financial Year, we increased it by a whopping Ksh30 billion. The Leader of the Majority Party said Ksh420 billion that is being proposed now is not the only money that will go to counties. We are going to change the terms of the workers who have been working for counties to permanent and pensionable in the new Budget. That will cost the Government Ksh9 billion. There are conditional grants that will go to counties. In total, counties will get close to Ksh500 billion. Hon. Ndindi Nyoro should not posture politically. Let him wait for the mediation process to happen.

Point made. Hon. Ndindi Nyoro

Hon. Speaker, actually I never needed to be informed. I have no time for those frivolities and filibustering. It is important that this issue has been brought up, even as I conclude. They have raised frivolities of who needed to call what and write a letter to the Speaker. We need to be honest to the Kenyan people. We now have a situation in this country where the Government joined the opposition and the opposition joined the Government. If you listen here, the majority side and the minority side of the leadership are a choir singing the same song. In such a House of debate, there must be alternative voices. We

are lying to ourselves and to the Kenyan people that in this House there is a minority side and a majority side. There is none. As the House...

On a point of order, Hon. Speaker.

Yes, Hon. K.J.

Hon. Speaker, at the beginning of this session, you did a communication to the House. For the Member for Kiharu to call that frivolity is in fact an insult to the House, yourself, and the rules and procedures of this House. There is no way the rules of this House can be frivolities. It would be in order for my good friend, Hon. Ndindi Nyoro, to, at least, respect the House if not the people in the House by withdrawing what he has said. That cannot be termed 'frivolities'.

Hon. Ndindi Nyoro, will you wind up?

Hon. Speaker, going back to the debate, I call upon all of us to be honest to ourselves. We need our county governments to provide health care services. We need our county governments to provide all the devolved functions and give quality service to the same people that we represent. That cannot be done through politics. When I talk about a substantive issue on money, that is not politics. However, even if it were about politics and the Kenyan people benefit, so be it.

My take is this; there is Ksh420 billion on the table. I needed no information from anyone that we will also debate about conditional grants. That is not what I am talking about. I am talking about the Motion that is before us on shareable revenue. As we sit here, there is an increase of the Budget in its entirety. We are now proposing a Budget of Ksh4.8 trillion, yet in this House we want our county governments to get the same money that they got in the last financial year at a time that inflationary pressure has taken real money out of their pockets. As we propose the Ksh420 billion, the Senate is entitled to ask for the Ksh34 billion more. We must meet somewhere. That is not about a specific Governor. It is about the Kenyan people. I submit.

I had advised the House that seeing what I see, this matter is headed to mediation. If it is, that is what will resolve the divergence of opinions between the two Houses. That being the case, you will have an opportunity to deal with the mediated version of the Bill when it comes. Also, once we pass this Motion with that as the case, Order No. 16 will collapse. So, do we really need to flog this?

No.

The mover is called upon to reply since there has been debate. Mover, one minute,

Thank you, Hon. Speaker. As I reply, it is good to indicate – as you have rightly put it – that what is being said here is premature. The Leader of the Minority Party aptly captured that. The Ksh420 billion is what has been proposed. Mediation is a give-and-take process. However, that does not mean that it is the end of it. It is in the mediation process that we will come together as leaders and agree that it is possible to increase the amount from Ksh420 billion but not to Ksh454 billion. We will debate about a reasonable figure.

Leader of the Majority Party, do you want to be informed?

Yes. Hon. Speaker. Any time the Leader of the Minority Party can inform me.

Hon. Speaker, I would like to inform the distinguished Leader of the Majority Party that in the last Financial Year, the same Bill went

for mediation with the proposed amount to counties being Ksh395 billion. It was the Mediation Committee that recommended Ksh400 billion and we took it to Ksh415 billion. I do not know why the Member of Parliament for Kiharu is jumping the gun by saying that the House must have an alternative voice, which he did not have two years ago. He had only one voice last year. Before he was removed as the Budget and Appropriations Committee, he had only one voice. Now he wants to take my job as the Leader of the Minority Party. Let him go and contest with that small party of his then he can come to be the Leader of the Minority Party. He cannot take my job.

The Leader of the Majority Party.

Hon. Speaker, I am well informed. It is actually true that we got to Ksh420 billion out of the mediation process. That is what we are inviting the House to do; to go through a mediation process. We will nominate very serious Members of this House; not Members who walk in the House for one minute to make political statements and record them on TikTok to circulate out there.

Serious Members are those who sit in committees, articulate issues, weigh in on matters, and come up with decisions that are beneficial for devolution, for the country, and for a time such as this when the nation calls for leadership.

Hon. Members, I will now put the question.

Hon. Members, that being the case, Order No. 16 exits from the Order Paper and dies there.

Hon. Members, allow me to acknowledge, in the Public Gallery, students from Mutuma Secondary School from Gatundu North in Kiambu County, and Golden Angels Education from Embakasi East in Nairobi County. In the Speaker's Gallery, we have students from Kiserian Girls’ School from Kajiado North in Kajiado County; Kyeni Girls’ High School from Runyenjes in Embu County; as well as teachers from North Carolina State University in the United States of America. On my behalf and on behalf of the House, we welcome all of you— students, their teachers and those accompanying them—to the House of Parliament. It is now 4:19 p.m. I had directed that we debate the Motion of Adjournment at

On a point of order.

Yes, Hon. Mwenje, what is your point of order?

Thank you, Hon. Speaker. I do not wish to take much time because the fuel issue is a significant matter that needs discussion. However, I was wondering at what point you would allocate time to discuss a less important issue, albeit still important, because, over the weekend, Arsenal won the English Premier league for the first time in 22 years. You are a supporter of the Arsenal team. Even the Leader of the Minority Party and Prime Minister Keir Starmer, during Questions, commended Arsenal. You are the only one in this House who was here the last time we won the league. Nobody else was here. So, I think it is a less important issue, but thousands of Kenyans rallied in the streets to see Arsenal claim the league. I just wanted to bring that matter to your attention.

Thank you.

Hon. Osoro, what is it?

Hon. Speaker, we are Kenyans and we should be discussing Shabana FC., Gor Mahia FC., AFC Leopards and Kawangware United. If we are to discuss international games and the English Premier League, let us talk about Manchester United. We cannot be discussing Arsenal.

Yes, Hon. Junet.

Hon. Speaker, the world has realised and has come to terms with the fact that the biggest team in the world, the most formidable team in the world, with the largest following and supporters, is none other than Arsenal. There is no team like Arsenal in the world. There are no players like Arsenal players in the world.

In conclusion, for those who believe in Arsenal, for those who support Arsenal, and for those who have faith in Arsenal, 30th May 2016 is our day when we are going to conquer the world. On 30th May this month, we are going to win the championship, defeating PSG 3-0.

Yes, Leader of the Majority Party.

Hon. Speaker, on a more serious note, and without casting any aspersions, I thought Hon. Mwenje would be considerate of all the other teams and would not make this request while you are in the Chair.

I take this opportunity to congratulate Arsenal and all the other teams that play in the Premier League. I also appreciate Hon. Mark Mwenje. I happened to be in London with Hon. Mwenje, and we had a 9.00 a.m. meeting the day after the game. Hon. Mwenje could not speak in that meeting because he had lost his voice. He went to North London, to the Emirates Stadium, and I must thank him in a very special manner, because I have not been a fan of any of these teams—neither Manchester United, Arsenal, Liverpool, nor Chelsea. I have been a supporter of Homeboys FC in Gikambura Village in Kikuyu, which thrashed Kawangware FC in their last game.

However, my young daughter is an ardent supporter of Arsenal, and she has since recruited me into the Arsenal Fans Team. I thank Hon. Mwenje because he offered to queue at the Emirates Stadium for almost two hours and bought my daughter a jersey that has her name and the number 7 on it. When Hon. Mwenje came back, I asked him how much the jerseys cost.

That is Bukayo Saka’s jersey.

Hon. Speaker, if you ask me, I would tell you that No. 7 is Mumbi; that is the name on the No. 7 jersey. What caught my attention, as a business person, was when Hon. Mwenje told me that he had bought it for about £160, which translates to about Ksh28,000. I looked at that business opportunity and, when I saw the celebrations around Kencom over the weekend, I wished I had known that earlier and made the jerseys for sale. That tells us the power of sports..Hon. Mwenje, I challenge you to bring a Motion or a Bill that speaks to how well we support our local teams, and how we use our sports funds not just to develop infrastructure, but also to ensure that all our federations are properly run and that we keep politics out of football and all other federations. Sports are the next frontier of investments where people can make money.

With that, I congratulate Arsenal and thank Hon. Mwenje.

Hon. Millie.

Thank you, Hon. Speaker. It would be a tragedy to just listen to Arsenal people speak here, yet we have Man U in the House.

Yaay!

In my mother tongue, there is a saying that dhiang’ otho kor gi odhera. When a cow dies in the home of a thin person, we will never stop hearing the last of it. So, a cow has died in the home of a thin person. They have not seen this for 22 years.

My husband is an Arsenal supporter, and for a long time I thought he had stopped being interested in soccer. They have been frustrated and depressed for 22 years. The man almost divorced me out of depression. They cannot handle defeat for 22 years. They should learn from Man U, the biggest team on earth.

We also need to remember that Gor Mahia K’Ogalo also won. Even though we may be saying this on a light note, it is worth observing that sports have a way of uniting people. Some people are not friends of Baba, and since he is an Arsenal supporter, they were putting Baba’s photos across and sharing them all over.

Let us strengthen our local sports and games so that we can have our sons and daughters celebrated the way other people were celebrating, like Hon. Junet. They have not seen a win in 22 years; let them talk to us. For us, it has been only 14 years, but we are coming for the next league. Hon. Speaker, you should not rule me out because you are biased.

Hon. Millie, in two minutes, you have betrayed two people: your husband and Baba.

Yes, Hon. KJ. A Member: Hon. Millie, you are divorced.

Hon. Speaker, I carefully hesitate to ask you to declare your interest in this matter, knowing well that there is a distinction between Hon. Moses Masika Wetang’ula and the Speaker of this House. I want to imagine that the Speaker of this House ought to be neutral as we discuss some of these matters.

The bigger point...

Declare your interest.

I am a big fan of Kawangware United from Dagoretti South Constituency, which plays at Riruta BP Stadium. The bigger point is for Hon. Mwenje to seek an opportunity in this House to promote sports. If we are big fans of Arsenal or Manchester United, we can get an opportunity for them to do an exhibition match at the new Talanta Stadium. That way, these teams would encourage youthful Kenyans. We know that countries like Rwanda invest very early in their talent, so that even six- or seven-year-olds are already out there in these international academies, getting ready for a World Cup tournament. I know that our biggest joy as a country would be when our teams are as big as the teams being discussed.

I must declare my interest that the great Manchester United is the team that I support; the great team that even remembers when they last won the Premier League, and not teams that last won the Premier League when some adults were not even born. They have just won the Premier League by fluke. We know the real champions will reclaim their place in next year’s tournament.

Thank you very much.

Members, let us leave it at that. The Holy Book, the Bible, tells us that salvation is not judged by longevity; it is judged at the moment it happens.

It was a fluke.

Arsenal won the League. They are the champions. And they will win the Champions League.

Yes. Hon. Speaker, you know I am known in this House as the champion of local soccer. Just as Hon. Millie said, we understand that no Arsenal fan has had the chance to congratulate their team since the inception of social media, because that is the last time they won.

match-fixing, which I will bring to the House soon, so that we continue supporting soccer in this country.

Hon. Wanjala. Give Hon. Wanjala the microphone.

Hon. Speaker, the people of Budalangi were on the streets. I had no idea that they all support Arsenal. They even raised money to have fun at Siangiri Bar and other bars in Budalangi. I went to buy an Arsenal jersey at the EastWest Sportswear shop in Moi Avenue, and it was packed. Arsenal is the team to watch, and we are all prepared to cheer Arsenal on Saturday as it wins the next match.

Thank you, Hon. Speaker.

Thank you. Let us end it there.

Declare your interest.

Hon. Millie, my main interest is the most poorly guarded secret: my support for Arsenal.

Hon. GK.

Thank you, Hon. Speaker. I beg to move that this House do now adjourn under Standing Order 33 (1) to discuss a definite matter of urgent national importance, namely the persistent increase in fuel prices and its far-reaching effects on the transport sector, cost of living and economic productivity across the Republic of Kenya. Fuel prices are determined by issues that are beyond our control, especially in light of the recent war in the Gulf region, which we refer to as external shocks. As a House, we must reason together and see how we can mitigate the effects of this crisis.

One of the areas which I think we must address is investment in electric vehicles (EV) . I know we would want to reduce import prices or import tax for electric vehicles, but I would be happier if we invested in manufacturing of those vehicles here in the country so that we can create job opportunities for our young people.

Secondly, we need to invest in Bus Rapid Transport (BRT) corridors and commuter railway capacity so that the prices do not hit us as hard as we have experienced. The third issue I believe we need to do to address the shocks is to increase our fuel reserves. Currently, our fuel reserves can sustain us for about 20 days, which is less than a month. In many countries that we admire, middle-income countries like Singapore, Malaysia, South Korea and South Africa, their reserves can go up to three months. This is an area where we need to put in more money, especially now that we have the National Infrastructure Fund, so that we can create a

buffer against the effects of whatever happens outside the country, especially in the areas from which we import fuel.

Hon. Speaker, the last thing that I believe we need to do to lower the effects of fuel prices is to diversify our sources of fuel. Currently, we are importing fuel from the Middle East, but countries that are not feeling the pain that we are experiencing have diversified their sources, and I believe we need to do so.

Meanwhile, in the transport sector, some people have tried to politicise the fuel issue. This is not the time to bring in a lot of politics. Some have even suggested that we do away with the taxes and levies that is charged per litre of fuel, but this will not help us. It will even make the situation worse. Road Maintenance Levy Fund (RMLF) has been used to securitise resources and as well as jumpstart our stalled roads. We had a big issue with the stalled road projects because of pending bills but with the creativity of this government, led by His Excellency the President, we have paid all the pending bills and almost all contractors are back to work.

Therefore, if we do away with the fuel levies, it means that we will go back to the problem of pending bills. If we do away with the fuel levies, as has been suggested by some of us, our vehicles will wear and tear fast because of potholes. We need to balance these suggestions and contributions so that we do not do away with the fuel levy and incur costs in maintenance of our vehicles because we are again importing the parts. I therefore hope that the House will come up with concrete measures that will mitigate these negative externalities to our economy and help Kenyans to carry on with their daily activities without feeling the pain of fuel.

Recently, we witnessed citizens of our neighbouring countries struggling to get fuel. Here we are talking about high prices, which is of course something that we need to work on, but there are some countries that do not even have a litre of fuel. Thus, I appreciate the efforts made by the government to avail fuel to our economy because without fuel, we will have a bigger problem.

I beg to move and ask my Committee member Hon. Kibet Komingoi to second. Thank you, Hon. Speaker.

Go ahead.

Hon. Speaker, as I stand to second this Motion, it is no doubt that there are disruptions in the supply of commodities and fuel across the world, and in particular, the sections of our continent.

Firstly, is the question of investment in the oil sector. We need to increase our capacities within the oil storage systems so that we can have fuel available even when the prices increase. Secondly, is another question of the regulations that govern the fuel pricing. The first thing that I have in mind is whether it is possible to provide more time to allow the public to participate in anticipation of any price increases? Currently, Energy and Petroleum Regulatory Authority (EPRA) has 30 days to announce new prices every month. Is it possible to have these regulations changed to 90 days instead? Within the 90 days we can adequately inform Kenyans and those who use fuel to prepare themselves for the shocks that are within the industry.

Further, there is the question of having the discussion that has been going on in the media. That we reduce RMLF that is currently being used to securitise and improve our roads, both maintaining them and developing them. The question that we need to answer (and indeed the question we must ask ourselves in order to answer it) is this: is it better to deploy this resource within the economy, rather than using it to cushion those who directly benefit from changes in the prices of goods?

Therefore, as I support and second this Motion, these questions must come alive among us as Members and as Kenyans. Decisions must be made so that we can all contribute in deliberating on whether the stabilisation undertaken by the Government through the Fuel Stabilisation Fund is adequate. Secondly, whether the question of further reducing the levies and taxes imposed on oil and petroleum products is something we need to look into. Thirdly, whether we should explore alternative sources of fuel, such as biofuels and the regulations governing their use within the country, so as to cushion Kenyans. I second.

Thank you. The microphones are not working and neither is the screen, so just raise your hand. Let us go to Hon. George Murugara, then Hon. (Dr) Otiende and thereafter Hon. Ndindi.

Thank you very much, Hon. Deputy Speaker. I thank Hon. George Kariuki, Member of Parliament for Ndia and Chairperson of the Departmental Committee on Transport and Infrastructure, for this timely Motion, which comes on the first day of the resumption of Parliament to deal with important national matters, including what we would consider to be a crisis in the country. To ordinary Kenyans and indeed nearly every Kenyan, the prices of oil products, including petroleum and other fuels, have become unaffordable. It is very important that we discuss as a House, because we were sent here by our voters, the citizens of this country, the 55 million Kenyans to represent them on matters as important as this.

It goes without gainsaying that the prices of petroleum products have risen drastically. Various reasons have been given, which are truthful and some, indisputable. First, is the war in the Far East between Iran and the United States (US) and the closure of that stretch through which ships carry oil. This has led to inflated oil product prices, a result of which there is increased pump prices in our country. Whether we like it or not, we must face this reality. It is important for me to let this country know that a while ago, I was in the United Kingdom and had the privilege of visiting the House of Commons.

On an entire Wednesday morning during the Prime Minister’s Question time, the questions Members were asking was how the UK can deal with rising oil prices. It is not only in Kenya where this is being experienced; it is global. Even countries with lower fuel prices have experienced increases. Therefore, as we debate, we cannot distance ourselves from the rest of the world. It is a reality we must accept and explain to fellow Kenyans the true causes of these high fuel prices.

[The Temporary Speaker (Hon. Martha Wangari) in the Chair] The second reason that is given is that our country has numerous levies and taxes on oil products. There may be evidence regarding this, it may be true but we must also debate because not long ago, this House took the time and energy to ensure that we deal with laws and regulations aimed at reducing taxes on oil products. Most recently, Value Added Tax (VAT) on fuel was reduced from 16 per cent to 8 per cent. That was a positive act for which this House deserves commendation.

Thirdly, we have also made attempts to subsidise oil products so that pump prices can come down and citizens can better afford them. This was done recently, resulting in a slight (albeit marginal) reduction in prices. The truth remains that there was a reduction. As we debate today, is there anything we can do about the war in the Gulf States? We may not do anything about it, but we can certainly do something about the levies and taxes imposed on these products. If there are taxes that this House can interfere with by reducing it to lower fuel prices, then nothing should stop us from doing so, while bearing in mind that these taxes are necessary for national development, especially the levies on oil products which go towards the development of our roads. I support this Adjournment Motion and urge the House to debate it soberly so that we may find a solution that will benefit Kenyans.

Thank you.

Very well. Hon. Members, this Adjournment Motion has been moved pursuant to Standing Order 33. Every Member shall have strictly five minutes, unless by leave of the House. Hon. Caroli.

Thank you very much, Hon. Temporary Speaker, for the opportunity to speak on this important matter. A very clear proof that Kenya is doing something wrong in the management of its petroleum imports is the fact that our fuel prices are outliers within the region. This is despite Kenya enjoying several advantages that should make our oil products more affordable. We have geographical access to the sea, better petroleum infrastructure, more multinational oil companies, better storage and pipeline infrastructure.

Nonetheless, inflation has now climbed to 5.6 per cent, largely due to the high cost of fuel. In just two months, the economy has had to absorb approximately Ksh20 billion in increased fuel costs. Economic growth forecast has also been revised downward to about 5 per cent. I will give the House some comparisons, in Kenya, petrol costs Ksh214.25 per litre, while diesel costs Ksh232.92. In Uganda, petrol costs the equivalent of Ksh200 and diesel Ksh199. In Tanzania, petrol costs Ksh190 and diesel Ksh189. In Rwanda, petrol is Ksh230 while diesel is Ksh225. I will not use data from Ethiopia because it is heavily subsidised.

Globally, the average price of petrol per litre is approximately Ksh188, while diesel averages about Ksh204 per litre. Yet in Kenya, petrol costs Ksh214, about 13.6 per cent higher than the global average and diesel costs Ksh232, approximately 17 per cent above the global average. This clearly demonstrates that there is something Kenya is doing wrong.

It is important that we understand what we are doing wrong. There is this animal Government-to-Government

(G2G)

, introduced about three years ago for fuel imports. It lacks transparency and has failed to secure competitive prices or what experts call better market price discovery. Why? In oil imports, there is an item called “premium.” That is where competition among suppliers occurs. Under the G2G framework

the premium was fixed at US$110 per tonne.

In global markets, this premium fluctuates, much like foreign exchange rates. However, in our case, it has remained fixed at US$110 per tonne for the last three years. Yet the global average premium has been approximately US$60 per tonne, meaning Kenya has been paying

more than US$50 extra per tonne. Even the regional average is around US$80 per tonne, but ours remains fixed at US$110. That is where the theft lies. That is where Kenyans are being squeezed and conned on oil prices.

It is, therefore, time to audit the G2G framework, revise it and make better price discovery possible by allowing competition on the premium component. If we fail to do so, then we are effectively conning Kenyans and we have been doing so for the past three years. It is now time to call a spade a spade and admit that the G2G arrangement has created an uncompetitive market for oil procurement in this country. It is time to audit and revise it.

Secondly, the off-takers under the G2G framework is Gulf Oil, a small oil marketing company that lacks the necessary wherewithal to bring into the market the plays of better infrastructure, storage and the rest.

Thirdly, we are making a big mistake. The President or Cabinet Secretaries should not talk about oil prices. There is an independent regulator. One of the cardinal principles is the independence of the regulator. We should leave these matters to Energy and Petroleum Regulatory Authority (EPRA) to deal with them as an independent regulator. Going forward, we need to agree to remove Value Added Tax (VAT) completely in the short term. We also need to remove Petroleum Development Levy (PDL) completely. After which we should agree on how to establish strategic petroleum reserves by using either local tankerage facilities, or offshore ones where we can buy when prices are low. Most importantly, we need to allow the regulator to review the prices more frequently. Instead of a 30-day turnaround, we could do it within 14 days so that when the price benefits the consumer…

Complete your contribution.

Instead of a 30-day turnaround, we could do it within 14 days so that the consumers may enjoy benefits of lower prices. And thank you for giving me the extra 30 seconds.

Finally, we need to diversify our sources of supply and routes; not just strictly Strait of Hormuz. We can get oil from around the world if we use sophisticated means of trading. But it is time to bring Government to Government (G2G) down, because it is being used to scam Kenyans on oil prices.

Thank you.

Very well. Member for Kiharu.

Thank you very much, Hon. Temporary Speaker. I will go direct to the point. Number one is that I wrote two letters to Parliament when this issue happened. One for recall, and the other one for consideration with specifics on the things that I am proposing. I am happy that tomorrow I will be appearing before the Budget and Appropriations Committee to further those proposals. On Friday I will also be appearing before the Departmental Committee on Finance and National Planning.

However, I find unfortunate, the earlier assertions in regards to the letter I wrote in terms of recalling Parliament. All of us Kenyans know the role of the Member of Parliament when they deposit the letter to the relevant office. It is not my responsibility to look for the holder of the office. He could be chairing a political party meeting in Bungoma, for example, or any other. It is not my role to look for them. I say so because this issue went to the media way after I raised it. It is not my responsibility to call office holders to come back to the office and check the communication from various Members.

Member for Kiharu, please do not challenge the Speaker’s ruling.

Okay.

Be careful to just use your minutes to prosecute your issue.

Secondly, we now have a government that has been swallowed by the opposition, and an opposition that is in Government. We have leadership on both sides; both the government and the opposition side, singing the same chorus. Who will stand in for Kenyans if we do not fill the gap? We must do what we must because the current situation...

On a point of order, Hon. Temporary Speaker.

Order, Member for Kiharu. Member for Suna East, what is out of order?

Hon. Temporary Speaker, what is out of order is that I want to educate my younger brother, that there is no opposition in Parliament. In Parliament we have the majority side and minority side. Every Member, in accordance with the Constitution is supposed to hold the Executive accountable. You do not have to be a minority to hold government accountable. Even the majority side where you belong should do that. That is why nowadays you are talking the way you are talking.

You have made your point, Hon. Junet.

Hon. Temporary Speaker, let me finish.

Order. It is more of a point of information and not a point of order. What is out of order?

The manner in which the Member has spoken about how to call for a special sitting of the House is out of order. That matter is well articulated in the Standing Orders…

That has been dealt with.

Hon. Temporary Speaker, I request Hon. Junet, an ignorant Member cannot inform the House. I need no information from you. I know what I am talking about.

Hon. Members, can we debate with decorum. Let us debate with decorum.

Point of order!

I will give you a chance. You do not need to throw words to the Temporary Speaker, Hon. Members. I can hear you. Member for Magarini.

Thank you, Hon. Temporary Speaker. Is the Hon. Member for Kiharu, Hon. Ndindi Nyoro in order to call a Hon. Member of this House ignorant? Is he in order to refer to a Hon. Member as being ignorant? Can he withdraw.

Hon. Member, you have made your point. Member for Kiharu, you certainly know the rules of this House. You know what is parliamentary and what is not. Do not throw aspersions to your colleagues.

Thank you, Hon. Temporary Speaker. Can I continue?

Let me hear the Member for Kiharu first.

Yes. I am making my submissions. I hope those minutes are not eating into my time, Hon. Temporary Speaker. The second thing…

Member for Kiharu, a point of order has been raised on you calling a Member ignorant. I certainly agree with the Hon. Member that you cannot possibly call a Member ignorant.

Please do not assist me, Hon. Members. Hon. Member for Kiharu, withdraw the specific issue on the word ignorant.

Hon. Temporary Speaker, I never called any Member ignorant. I said the information he was giving me was not sufficient enough to be an information.

Point of order.

I will give a chance to the Leader of the Majority Party, followed by the Whip of the Minority.

Hon. Temporary Speaker, I had retreated to my office to attend to other business, but I had to come back quickly when I heard the Member for Kiharu cast aspersions on the person of the Speaker. You do not need to name anybody by name, what you say could be casting aspersions. Thank you for guiding the Member that he cannot and he must never cast aspersions on the Speaker or any other Hon. Member.

Two, the issue raised by the Leader of the Minority Party was not… You can rise on a point of information to inform the Member who is on his feet. The Member for Kiharu was not being informed. The Leader of the Minority Party stood on a point of order and was speaking to the House. Therefore, the Member for Kiharu has no choice other than to withdraw that reference. He does not need to have mentioned a name. If you ask for respect, you must also have the temerity to respect other people. Hon. Ndindi Nyoro, I know you are my younger brother. Listen to my advice. I am only advising you that if you want to go far, learn to respect other people to earn your respect back.

You have made your point.

Hon. Temporary Speaker, through you, I was telling the Member for Kiharu that when another Member rises in his place to inform the House on anything, whether it is a point of order or a point of information, be patient. This afternoon, the Member for Kiharu Constituency asked the House to agree with him fully. We must allow dissenting opinions. That is why this is a Chamber for debate. This is not a church where we sing choruses. Saying that the person who was informing is ignorant… Hon. Junet was not informing you. He informs more serious legislators.

You have made your point. Hon. Millie.

Thank you, Hon. Temporary Speaker. Hon. Ndindi Nyoro has indicated that he did not use the word “ignorant”. I think you can prove that from the Hansard. Even when you disagree with other Members, you must disagree respectfully. There is a lot that we can say if you are to go that direction.

If Hon. Ndindi remembers, when we were in the Budget and Appropriations Committee, I told him, “Wade carefully in this House. One day, you might find yourself not as the Chairperson of the Budget and Appropriations Committee, and with me as the Chairperson of the Budget and Appropriations Committee before this Parliament ends.”

The only wrong thing I got is that it is not me who is the Chairperson of the Budget and Appropriations Committee, but he is sitting as a non-Chairperson of the Budget and Appropriations Committee and Hon. Atandi is the Chairperson of the Committee. I just want to encourage you, my brother, we have been there, we have got a T-shirt. Even when you are debating, respect other Members. I would call that we check. If indeed he called Hon. Junet ignorant, he needs to apologise so that it is expunged. His constituents did not elect him because he is ignorant. That is not up to Hon. Ndindi.

No Member is ignorant. I am with you, Hon. Millie. Hon. Junet?

Hon. Temporary Speaker, first, this is a House of Records. I stood up on a point of order. I did not request you to give me a point of information because Hon. Ndindi is one of the least people I could inform because we do not have that relationship of informing each other. I was standing on a point of order to bring to your attention. You asked me twice, “What is your point of order?” Twice, on record. I told you, one, it is about the issue of how to recall the House for a Special Sitting because he was disputing what the substantive Speaker had said. Secondly, there is an issue I raised with him about some of the issues he had raised. Now, he has turned the whole thing into me informing him. Why would I inform him? I do not come from Kiharu. Why should I inform you?

Hon. Members, I have heard all of you. The one thing I agree with is what the Leader of the Majority Party and all of you have said. We must maintain decorum in this House. We do not have to all agree, by the way. Member for Kiharu, on one thing that I will fault you, I heard you clearly say “an ignorant Member”. I will want you to withdraw that, on record. Then you can proceed and we can hear the rest of your submission.

Hon. Temporary Speaker, I would require that we actually check the HANSARD, kindly, because I also recall that I was insinuating about what he said, not the person. Clearly, as you had actually ruled yourself, Hon. Temporary Speaker, the Member was out of order. For continuity, because you are executing a very important issue, I withdraw. Going forward...

I ordered withdrawal, not apology. Go on, Hon. Member for Kiharu.

Hon. Temporary Speaker, my proposal is as follows. If we take the landing costs of both super petrol and diesel in Kenya, taxes in terms of petrol account for KSh74, and diesel accounts for close to KSh70. My proposal is simple, and the decision lies with this House. We must make a decision now to lower pump prices, or we are going to deal with a much stickier situation in our economy in the future.

When prices are rising, it is temporary because the issue that is there globally is temporal. There are decisions we can make that will affect our economy in the next many months to come. Some of the variables of the economy, for example fares, when we raise the prices of fuel commensurately, the fares go up. Even when the global oil prices go down in the next few months, it will be highly unlikely that you are going to realise the downward trend in terms of fares because some of these economic variables are sticky in terms of coming down.

Therefore, I will be appearing before the Budget and Appropriations Committee and the Departmental Committee on Finance and National Planning to give these proposals. In the next six months, we exempt fuel products from VAT, that is, we exempt the 8 per cent that is there. That will bring down the pump price by Ksh15 and KSh17 respectively, in terms of diesel and petrol. We bring down the Road Maintenance Levy Fund by Ksh7. These are not all the taxes. The Road Maintenance Levy Fund is Ksh25. I am just proposing Ksh7.

The other thing does not even require us to debate, that is, we lower the margins of the importers and the people involved in the oil business. I am proposing KSh4 because it used to be Ksh12, now it is Ksh17. The last proposal is that we invoke the money we already have in the Fuel Stabilisation Fund so that we subsidise diesel further. If we do all these things, the pump price will be around Ksh187 for petrol and diesel.

Some people are then arguing, how are we going to recover the shortfall in terms of the revenues that are put forth? We will go to the expenditure side, and that is why I will be appearing before the Budget and Appropriations Committee. The kind of largesse we see in Government; this is now the time to cut the flesh. It is the time to cut the fat. The big offices that are currently enjoying huge budgets, political budgets, it is now time we scale down on those expenditures for the sake of Kenyans. We may tell Kenyans to tighten their belts, but Kenyans have no more belts to tighten.

Member for Kiharu, you have two more minutes.

The other thing that we have to be aware of, we can talk about global oil prices, it is fine. In 2022, a barrel of oil in May was around US$120 per barrel. Now we are talking of around US$90 per barrel as of today. Global oil prices were higher in 2022 than now, but now the pump prices are higher than in 2022. There is one denominator there, it is an animal called G to C. Government to cartels, but we like calling it G to G. On the side of the vendors, we have governments representing their countries. Saudi Aramco is a Government entity. ADNOC is a Government entity.

Here in Kenya, what we did around that time of G to G; instead of pumping up the Kenya National Oil Corporation, we did the unfathomable. We actually gave it the last dose and finished it. Therefore, currently, the Government of Saudi Arabia and the Government of the United Arab Emirates, in that G to G, on this other side, are dealing with a cartel which is milking Kenyans of their money. There are people currently smiling out of profits when the Kenyan people are having pain in their pockets.

On a point of order, Hon. Temporary Speaker.

Leader of the Majority Party.

Hon. Temporary Speaker, I do not want to interrupt the Member for Kiharu. These are Houses of Record. The Hon. Member for Kiharu portends that G to G is not G to G, it is G to C, and says it is Government to cartels. This House and the country would benefit more from the Member for Kiharu if he would substantiate and inform this House who these cartels are, because he seems to know them.

Secondly, the Member portends that global oil prices were high in 2022. It would also be important for him to let the country know what the cost of freight was then, and whether the Strait of Hormuz was open then and today. You just need to have a good analysis of the landed costs of fuel today, and you will see that part of what is bedevilling the global economy, not the Kenyan economy, is the cost of freight. In the same way, even airlines today are having to detour, take longer routes and take a hit on their profits.

You have made your point, Leader of the Majority Party. Let the Member for Kiharu Constituency respond and finish his contribution.

Hon. Temporary Speaker, in response, to make it clear, fuel from Saudi Arabia does not pass through the Strait of Hormuz. Let us not keep misinforming Kenyans by seeking short-term solutions.

Lastly, I want to beseech my brothers and sisters. Many times, we take a stand along political lines. We have a test before us, and I call upon all of us to stand on the side of Kenyans for once. This House can give Kenyans a reprieve at the pump. I have laid forth objective, workable and temporal proposals. I call upon all of us to support Kenyans. Let us lower oil prices by lowering taxes and levies, which are the only levers we hold.

Thank you, Hon. Temporary Speaker.

Let us have the Member for Ndhiwa.

Thank you, Hon. Temporary Speaker. Kenyans are going through a hard time because of this tragedy, especially in low-income households. We should also be aware that we are part of a global village. Anything that happens anywhere in the global village affects us. We import refined petroleum products through the Strait of Hormuz, which is not straight because of the conflict in the Middle East. That small passage, which measures 30 to 39 kilometres, handles one million barrels of oil per day. That is the source of our problem.

When there is a crisis in the country, our citizens, the common wananchi, look to us to solve it. We lack a proper communication channel. That is why I am proud of what Cabinet Secretary John Mbadi was doing at Jeevanjee Gardens today. He allowed people to ask questions as he responded, so that they could understand what was going on. We had a proper communication channel during the COVID-19 pandemic. We will experience many crises, and Kenyans will depend on us to intervene in one way or another.

The Government's efforts so far are okay, but we need to do more. How do we do more if we do not support what the Government is doing? Politicising the interventions makes the situation even worse. Lowering taxes and introducing subsidies are welcome moves. But we should aspire to the long-term goal of alternative energy sources such as solar and wind. This is so that such crises do not paralyse our country’s operations.

I urge my fellow parliamentarians to reflect on what we have just gone through regarding decorum and how we shout at each other, which does not augur well. We are honourable Members. We have to convey our message and opinions with decorum. Let us retreat to our constituencies and do our best, including urging the Government to provide food subsidies to our people. Production costs and food prices are up because they depend on energy. All low-income families have access to a food subsidy card so they can take care of their health care.

Lastly, I disagree with the doctrine of comparison. Each country has different ways of dealing with things and factors that drive prices. We take a lot of time comparing ourselves with Uganda and Tanzania. Let us deal with our problems as Kenyans and find a solution. In fact, you will find a different scenario if you go there. There is no common denominator for all we go through every day as a country compared to them.

With that, I urge our Members to communicate with our constituents. Let us support the Government in dealing with this. Parliament is back in session, so let us deal with this. As I have heard from other Members here, let us share ideas to find amicable solutions to the situation. Politics will not solve this problem.

Thank you, Hon. Temporary Speaker.

Very well. Leader of the Minority Party.

Thank you for giving me an opportunity to contribute to this matter. From the onset, I want to say that I sympathise and empathise with the difficulties Kenyans are going through. This rise in fuel prices has indeed placed a heavy burden on Kenyans, both at home and at work. It has put a strain on their pockets. I empathise. We must come up with a solution. In fact, the common denominator is that we must find a solution to this matter.

Having said that, something worries me. I really want a solution to this problem because it is our job as Members of this House. We are supposed to deal with matters of concern to the people. That is our main mandate. I feel that this is the right moment for us to engage on this matter soberly and in a manner that does not politicise it because we want to score politically.

What worries me now is seeing people suddenly become clever and know everything. Why do I say so? I want someone to tell me on the Floor of this House what the situation was before the Middle East war happened, or before there was a war between Iran, Israel and the United States. People now want to deny the fact that this is a global problem. They want to make it a Kenyan problem. Was there any problem in the fuel system in this country before the war happened? The answer is no. War has brought this problem.

Everyone had time to speak on issues. Let us be given time. Someone did not bring me to this House. My constituents did.

Address the Speaker.

I am addressing you, Hon. Temporary Speaker, but there are interruptions. I am saying there was no problem with fuel before the war happened. Now, it is a fact that the global problem has affected this country.

There are these sweeping statements people make, saying, “Oh, fuel is cheaper in Uganda and Tanzania”. That is a very tired narrative we should stop using in this country. Why do I say so? How do I qualify that?

Our economies are different. The debt of our country is not the same as that of Uganda or Tanzania. Some of the people who have put this country in debt are the ones speaking here. They were once the Chairs of the Budget and Appropriations Committee. It is on record that I asked them on this Floor, “Why are they allowing the Government to borrow more?” They told me, “My friend, look at Japan. They have borrowed 100 per cent of their GDP. Look at America, they have borrowed 200 per cent of their GDP. Look at Singapore.”

You are wasting your time.

You say that we should reduce the RMLF by Ksh7 and the VAT by eight per cent, but you do not indicate how we will raise the revenue deficit. You say that there is largesse in Government. As the good economist that you portray yourself as, you should indicate how we will raise revenue after reducing taxes. Indicate the specific areas.

Can this House be told what the situation in this country was before the Government- to-Government (G-to-G) oil deal was established? We would queue for fuel at petrol stations. We would carry jerricans in our vehicles. There was no fuel at any petrol station in this country when the former President Uhuru Kenyatta left office.

Hon. Members, when we started the debate, I guided that the Motion falls under Standing Order 33; therefore, Members’ contributions are limited to five minutes. However, allow me to use my discretion to give Hon. Junet five more minutes. The Leader of the Majority Party will have 10 minutes to speak, and the other Members will have five minutes each.

Thank you very much for your indulgence, Hon. Temporary Speaker. What was the situation when the G-to-G oil deal was introduced in this country? There was no fuel. Fuel prices were high. The dollar was trading at Ksh160. Our country has about 180 oil marketing companies that were simultaneously buying dollars to import fuel. What happened? They were scrambling for dollars. As a result, the dollar strengthened while the Kenyan shilling weakened.

Let us appreciate the gains we have made from the G-to-G. You can call it whatever you want. I am not here to defend the Gulf Oil Company, but research shows that it has been in the oil business for the last 20 years. It was not registered because of the G-to-G oil deal. The Gulf Oil Company has been operating in this country since 2008. It has even won open tender contracts during that period and is one of the companies that supply fuel nationwide. All that is on record. We cannot deny facts. You may have a problem with the owner, or you may want to extort money from him, but that is a different matter. The fact remains that the Gulf Oil Company has been an oil marketer in our country for the last 20 years. It was there during Kibaki's and Uhuru’s terms; it will be there during Ruto’s time; and it will still be there when I become president, God willing, which I foresee happening in the near future.

Let us not politicise matters to incite Kenyans; they are suffering. I acknowledge that we must do something to alleviate that suffering, but let us do so honestly, not for political mileage. You want to portray the Broad-Based Government negatively because you think it will help you win an election. This could be a temporary issue. I do not know what you will say in two months when this war ends and oil prices come down. If you say that it is because of the premiums, as some “prophets” suggest, why was fuel cheaper before the war? Just as the

Leader of the Majority Party has said, freight costs have risen. That is what is making oil expensive. Insurance and freight costs have increased because of the war.

Someone said that Kenya’s oil does not pass through the Strait of Hormuz. When did you begin escorting the ships coming to Kenya to know where they pass or do not pass? My friends, the fact of the matter is that we are not an oil-producing country, nor do we have an oil refinery like Nigeria. We buy fuel from the international market. People who do not follow international news or understand what is happening globally struggle to appreciate this reality. The United States of America (USA), which is an oil producer itself, is experiencing fuel shortages. Let us not lie to Kenyans. Let us not incite them; let us develop solutions that can help them.

I do not want to be general like some of my colleagues. I want to propose a solution to the transport industry that has been heavily affected by fuel prices. A majority of those in the sector have loans to pay. They borrowed from banks. Just as during the Covid-19 period, we need to speak with financial institutions and banks to freeze interest rates for the time being and suspend loan repayments.

Hon. Junet, focus.

It is high time we allowed the matatu industry some relief. I have also come to realise that Kenyans need to diversify even in the matatu sector because, as I can see, some people have lately used it politically. We need financial institutions and banks to grant the matatu industry a moratorium on loan payments and interest.

Let us not come here to posture politically if we are truly leaders, as we claim to be. Let us provide solutions that can advance our country, make it better and make it look good. I do not benefit from high fuel prices in any way. In fact, as I have said, I am in the transport industry. I am suffering.

You have made your point. Leader of the Majority Party.

Thank you, Hon. Temporary Speaker. Allow me to support this Motion. As I said earlier, this time calls for leadership. The easiest thing for us as politicians is political posturing, speaking to the gallery, and saying all manner of pleasantries that we think will excite our supporters and sound good to the people, even when they may not be true. I say this because we must not make proposals that speak to the gallery when we make proposals here as Members of Parliament. That is what I see with some of our colleagues.

We all know this is the House charged with making budgets, including those of us, like myself, who have had the privilege of serving as a Chairman of the Budget and Appropriations Committee. I speak with authority because I served for almost 2 years before I was fired as the Chair of the Budget and Appropriations Committee. I remember Hon. Junet saying, “Hon. Ichung’wah is the best Chair of the Budget and Appropriations Committee, even as we fire him”. My record still speaks for itself.

After I was removed as the Chair of the Budget and Appropriations Committee, unfairly so, I never once stood on the Floor of this House to oppose matters I had prosecuted as the Chair. I will never do that because I make conscious decisions as a leader. I do not make decisions merely to excite and please people out there so that they praise me as the greatest of all time. You may think you are the greatest of all time as you move around with lecture notes, only to end up in premium tears when people discover you were lying to them.

When you tell us that we can reduce VAT or do away with it, as a Member of this House, you know very well that something else must give way for whatever you remove. It will result in reduced capitation for primary and secondary school students. It will translate into lower funding for university students or lower budgetary allocations to healthcare workers and the healthcare system. This will lead to a slowdown in our economy.

Therefore, even as we make proposals, I identify myself with some of the proposals made by Hon. Junet. I also liked what the Governor of Nairobi said during his press conference last week. These are not normal times. Our financial services sector rose to the occasion and extended loan moratoriums during the COVID-19 pandemic. This is such a time. There is no other sector in this country that is making more profit than the financial services sector, and I am speaking to banks and their owners.

If you were able to extend moratoriums on interest and penalties for late loan payments to those in the hospitality sector who were affected by the pandemic in 2019/2020. Today, the banking sector can extend the same moratorium to our transport sector players. I am not talking only about matatus and buses, but also about truck owners and drivers who transport goods from our rural areas, including the food we eat in Nairobi and other urban areas. They need a reprieve. We must empathise with many of these people, as they have taken out loans to buy the assets they use. We must ask and urge the financial services sector, our banks, to extend a moratorium on interest as they did during the COVID pandemic. This is because wartime economies cannot operate the same way as peacetime economies.

I have heard a Member here portend that global oil prices per barrel were lower in 2022 than they are today. True, but be honest as a leader. Telling people that Saudi oil never goes through the Strait of Hormuz is a plain lie, because almost 80 to 90 per cent of Saudi oil is transported through the Strait of Hormuz. I tell the Kenyan people that it is true the cost per barrel in 2022 was lower, but what is affecting us as a country is that we do not have an oil refinery. We killed the Changamwe Oil Refinery earlier, before this administration, during the Late Hon. Kibaki's days.

Today, Hon. Temporary Speaker, we do not import crude oil. If crude oil is cheaper per barrel, ask yourself where you refine your oil. For instance, if you are refining your oil in Bahrain, the oil refinery there was bombed. What does that do to the cost of the refined fuel that we import into this country? Therefore, what is this motion doing? It is not an opportunity for people to come and posture here.

Order, the Leader of the Majority Party. Hon. Caroli, what is out of order?

The Hon. Member is out of order to mislead not just the House but the nation. He has explained that the closure of Kenya Petroleum Refineries Limited has led to a rise in fuel prices in Kenya. It is the opposite. In Kenya, when we had the KPRL, we were importing 70 per cent white oil. So, it is wrong.

I am also trying to listen to you. I heard you debate, and you gave your point of view. Allow the Hon. Member also to debate unless something is totally out of order. Leader of the Majority Party, proceed.

Thank you, Hon. Temporary Speaker, for the protection because the Member is on debate and he had his time. He can have the temerity and the patience to listen to me educate him a bit. I may not be able to educate him on

everything. I was talking about the price of crude oil. We do not import crude oil into this country. We import refined products or processed products. Therefore, if we have seen refineries being bombed, what does that tell you in simple economics and in the law of supply and demand? We have been told that oil prices in Ethiopia are much lower.

I must thank Citizen TV and the journalist called Alex Chamwada. They did a very good piece showing us, the people of Kenya, how fortunate we are that we entered into the Government-to-Government (G-to-G) arrangement.

That ensures we are not short of supply today. Hon. Temporary Speaker, if we want to be populists, it is very easy. We would cut the diesel supply. For instance, if we consume two million litres of diesel a day, we can cut that in half and use what we have been told is a fuel subsidy. We can use the money to subsidise a lower fuel price. That is what many people are doing today. That is why we see long queues of vehicles, because they are chasing a smaller amount of product.

On a point of order, Hon. Temporary Speaker.

What is out of order, Hon. Nyoro?

My point of order, Hon. Temporary Speaker, is on the honesty we need to have in this debate. We are very quick to give examples of Ethiopia and Burundi when it is convenient. Why can we not use an example of a country like Uganda, which transports fuel through Kenya?

Order. Member for Kiharu, I heard Hon. Caroli give examples and their points of debate. Allow Members to give examples as they deem fit for their submission.

Thank you again, Hon. Temporary Speaker. I told you these people have no patience. The truth, at times, becomes very bitter and painful. But let me take you to Uganda, because that is where I was. It is possible for us, if we wanted to be populist today, for instance. To cut diesel supply, we subsidise fuel per litre. Therefore, if we are subsidising, say, 2 million litres of diesel being consumed every day, we just cut supply by half, then do what they are doing in some countries. Make the fuel very cheap, but unavailable. What does that do to our economy? Those are the questions we need to be asking ourselves as leaders.

I can stand here and pontificate all manner of goodies and sweet nothings, but they will not help this economy. What we need to look at is how we chew gum and scale the stairs at the same time. We must not view this from a short-term perspective. We must look at it in the short-term, medium-term and long-term. The long-term is what the Government did through the National Infrastructure Fund. We must begin devoting resources to ensure that they are adequate to generate and transmit power. So that we can move to e-mobility, the electric vehicles that we are talking about here. If we move to e-mobility today, as Hon. KJ is telling me, do we have the power to charge the cars? That is what the National Infrastructure Fund is for.

I must thank President William Ruto. As many people shout at him, he has remained true to the course and focused on what needs to be done to transform this country. He has done that amidst noise, shouting and insults. With the National Infrastructure Fund, we can develop adequate power to charge our electric mobility sector.

We must also consider long-term solutions to improve supply optionality. We have seen that war in one area can completely disrupt our economy. Therefore, we must have supply optionality to explore ways to obtain supplies, whether from West Africa or other areas and far-flung corners, such as the United States. But I also agree with Hon. Junet. I was speaking to my nephew last night, and he told me that, now, fuel in the United States is more expensive than in Kenya, even though the United States is an oil-producing country.

I do not want to mention what they did in Venezuela because they are a friendly nation. Many Kenyans say that we should not compare ourselves with America or the developed world. They have more disposable income. That is why, as responsible leaders, we must protect disposable income from further degradation. We would allow our economy to go down if we followed some of the populist things we are being told here. If we do not receive Value Added Tax for school capitation, parents will have to pay higher school fees. That further eats into their disposable income.

I am saying that, looking at the long and medium-term plans, it is inexcusable and indefensible that, as a nation, we have allowed our country to operate without strategic oil reserves over the last few decades. However, it is understandable. In the future, we must ensure that the Government of Kenya allocates resources to enable us to establish strategic national oil reserves.

If we had them in this country today, we would be using the oil purchased when it was cheaper to balance out what we are getting and keep prices moderate. These are solutions from leaders.

I spoke about diversified sourcing. We must diversify our fuel sourcing. A Member has said that the oil does not pass through the Strait of Hormuz. You must go through there to reach the refineries. This is a fact of life, but anyone dishonest and populist will not want people to know it. I dare say the unpopular thing, but the right one. I dare propose to this House….

Let me add you one minute to conclude.

As leaders, we are dealing with wartime-style logistics around the world in the global supply chain. We cannot compare the peacetime supply chain to the wartime supply chain. We must be innovative.

Locally, I call upon our financial services sector, our banks, to be sensitive. Let us empathise not with the person you see as the matatu owner, but with the passenger in that matatu. Let us not empathise with the person you see as a maize farmer, but the consumer of maize flour who buys it from a kiosk or supermarket. Let us extend a moratorium to our matatu owners and transport sector owners like Hon. Junet, who has trucks. This will enable him to extend the moratorium he receives from a bank to the consumer, without unreasonably increasing transportation costs, once his financing costs are rationalised.

Part of what we should do today, as a House and leaders, but not as politicians, is to work on ways we will help our banking sector first extend the moratoriums they had during the COVID-19 pandemic to the hospitality industry. Let us see the same. Kenya Bankers Association appeared before the Departmental Committee on Finance and National Planning. I hope they will speak to some of these issues. I plead with them on the Floor of this House to do it. I say this because I am a shareholder in one of the banks. I am not willing to take dividends from the banks in which I have shares.

Member for Kikuyu, I have been told by the Whip of the Minority Party that girls from Alliance Girls’ High School are waiting for you back here. Wind up, please.

I am winding up. As a shareholder in banks, I am willing to take a lower dividend or no dividend at all to help us navigate through this wartime season. Finally, let me plead with the Prime Minister of the State of Israel, the President of the United States of America (USA) , the most powerful nation in the world, and

the Iranian State to put the lives of the people of the world ahead of all other considerations. I pray for peace.

Very well.

Thank you, Hon. Temporary Speaker. I pray that, as we consider the Finance Bill, the bank owners and the Kenya Bankers Association will bring forward proposals on how we can help them extend some of these moratoriums to the people.

In closing, to the Government and leaders of the people of Kenya, through the National Infrastructure Fund, let us start thinking about alternative public transportation. Let us begin thinking not just about e-mobility, but also light rail and trams. Railway infrastructure carries more passengers at a cheaper cost.

Your time is up. The next chance will go to the Member for Malava, Hon. Ndakwa. Your card has been malfunctioning.

Thank you, Hon. Temporary Speaker. I rise to contribute to this important debate on the soaring fuel prices in our country. The situation continues to hurt ordinary Kenyans, especially the poor and vulnerable. Fuel is no longer just a commodity. It directly affects transport, food, electricity, school fees and almost every basic necessity in our society, Mr Speaker, Sir.

Member for Malava, I am definitely not “sir”. The Speaker is definitely not a “sir” unless you are seeing something that I am not.

Hon. Temporary Speaker, pardon me. The substantive Speaker, Hon. Wetang’ula, was here, and I was used to him. I hope you have pardoned me.

As I continue, I believe the burden of rising fuel prices is ultimately transferred to ordinary mwananchi in the villages, informal settlements and towns. It is an additional cost borne by the people we serve. This is the time for us to rise as leaders of this country, not merely as politicians. As leaders of this House, we must move beyond lamentations and provide practical solutions. We are speaking about the country's economy and the pressure it is placing on ordinary Kenyans. In Malava Constituency, farmers are paying more to transport their farm produce, especially sugarcane. They are struggling to sustain their daily businesses and meet household needs. The ripple effect is devastating and is mostly borne by low-income earners.

As a House, we must put measures in place to cushion Kenyans. The Government should strengthen and properly utilise the Fuel Stabilisation Fund to protect consumers, especially during global crises. When the world sneezes, Kenya catches a cold. When major powers lose diplomatic balance, we are directly affected. Such funds should be put to proper use during difficult times and should not remain dormant. We should also invest in affordable, reliable public transport systems to reduce reliance on private transport, which is a burden on workers and traders.

Overdependence on private transport is a burden to workers and traders. To address the suffering of Kenyans, this House should support policies that encourage local production. We should have renewable energy, as the Leader of the Majority Party said that we should have

alternative energy sources. We should establish strategic natural reserves to provide a long- term solution and …

Your time is up. I had already given direction, Hon. Member. Let us utilise five minutes so that all of you can get to speak.

Hon. Member for Magarini.

Asante, Mhe. Spika wa Muda kwa kunipatia nafasi ya kuchangia Hoja hii. Ninauunga mkono. Hakika, Wakenya wanahangaika na hii haitupatii nafasi, kama viongozi ya kufanya siasa. Siasa ya kupinga na kubomoa ni rahisi kuliko ya kujenga. Ninavyo fahamu, kuna kila jitihada inayofanywa kuona kuwa bei ya mafuta inapungua ili kila mmoja afurahie. Lakini, si vyema kuwahadaa Wakenya badala ya kuwaambia ukweli. Neno la uwongo ni tamu kuliko la ukweli.

Ninafamu ya kwamba Serikali, hususan Rais yuko na mipango ya kuona kwamba muda mchache ujao, ule mtambo wa Changamwe wa mafuta utarudishwa. Hata kama hautajengwa Changamwe, utajengwa pahali popote pale iwe ndani au inje ya nchi. Utakuwa mtambo ambao tutautawala na utapunguza moja kwa moja bei ya mafuta na kila mmoja wetu atafurahia. Lakini tunahitaji subira. Subira ndio itakayotuletea yote mema tunayotarajia katika nchi hii. Matamshi yetu ya hapa na pale matangani na katika mikutano yetu haitatusaidia kujenga nchi bali itabomoa nchi.

Nikikumbuka vizuri, mwaka wa 2005 ndugu yangu Mhe. Kaluma – bahati mbaya leo hayuko hapa japo bado ningesema hata hama angekuwa – alisema hii nchi lazima watu watwangane ndio heshima ipatikane. Mwaka wa 2007/2008 hayo yalitokea. Je, heshima ilipatikana? Yaliyopatikana ni madhara katika nchi hii. Hivyo basi, ni wajibu wetu kama viongozi kuona kuwa matamshi yetu ni ya kujenga nchi.

Naunga mkono wazo la kuwa na hazina ya mafuta siku za usoni. Hilo litatusaidia japo tusijilinganishe na nchi jirani. Tukitumia ukora unaofanywa na mataifa jirani kwa mafuta ili kupunguza bei ya mafuta, gari zetu zitaharibika. Kuna makampuni ambayo huchanganya mafuta ili warudishe bei chini na hilo huharibu magari. Kwa hayo machache, asante sana.

Asante sana. Mhe. Benard Kitur, Mbunge wa Milima ya Nandi.

Thank you very much, Hon. Temporary Speaker, for the opportunity to contribute to this very important conversation. I also appreciate the Speaker for giving us the chance to discuss it. I know Kenyans were expecting that, today, as we resume after recess, we would have this serious conversation.

First of all, I would like to thank the Government for immediately initiating the discussion on 28th February 2026, when we faced challenges arising from the Gulf situation that led to price spikes. Promptly, the Government, in collaboration with this honourable House, reduced the VAT on fuel from 16 per cent to 8 per cent. This alleviated the situation. In addition, the Petroleum Development Levy Fund was utilised, amounting to about Ksh6.2 billion, as another immediate measure. None of us expected this challenge to persist for so long.

Nonetheless, we have engaged in discussions as a country and as leaders within various industries, including the matatu and transport sectors. I thank all Kenyans and the leaders in the Executive for their involvement in these discussions.

Hon. Temporary Speaker, I appreciate President William Ruto for proposing that we consider adopting electric vehicles in our country. For the first 100,000 vehicles, there is a window to import them with reduced levies, and I believe Kenyans must seize this opportunity. Furthermore, we should embrace the electric vehicle sector and encourage local manufacturing. Someone else suggested that we consider implementing a Bus Rapid Transit (BRT) system, which will significantly reduce our fuel consumption.

A real global concern is that, unlike countries such as the United States and those in Europe, which maintain substantial fuel reserves, our country holds only enough for about 20 days. Other countries have reserves for up to 90 days. In my view, we need to encourage private players to take on a greater role in ensuring adequate fuel supplies nationwide.

The conversation has continued in this House, and I was surprised to hear some politicians state that the fuel entering our country does not pass through the Strait of Hormuz. I wish to clarify this matter. We live in an age where information is readily available online. We have three contractors under the Government-to-Government agreement: Saudi Aramco (which we all know), the Abu Dhabi National Oil Company, and the Emirates National Oil Company. It is a fact that 96 per cent of Saudi Aramco's oil passes through the Strait of Hormuz. They had to establish alternative, more expensive routes to deliver this fuel to Mombasa.

Furthermore, over 50 per cent of Abu Dhabi's fuel also moves through the Strait, while the Emirates National Oil Company has 96 per cent of liquefied natural gas and 55 per cent of crude oil that follows this route. This clearly indicates that the majority of our fuel goes through the Strait of Hormuz. Thus, whenever there is a blockade, they must find alternative means to transport fuel to Mombasa, which inevitably drives up landing costs.

In the future, I expect leaders to communicate this clearly. They must be honest with Kenyans. One cannot speak solely when it suits their narrative. They must support their arguments with facts. Finally, I wish to advocate for the establishment of a refinery, whether through regional collaboration or domestic efforts, to process crude oil locally. This would help reduce fuel costs. We must also explore local oil sources to reduce fuel costs further. Generally, I appreciate the initiatives the Government has taken to ensure that fuel in our country remains affordable. I encourage all Kenyans to use alternative means to reduce our fuel consumption.

Thank you, Hon. Temporary Speaker.

Very well. Hon. KJ.

Hon. KJ is from Dagoretti.

I thank you, Hon. Temporary Speaker. This is the great Dagoretti South Constituency. Allow me to start by commending the Members of Parliament for adjourning very serious business to discuss this equally serious matter of national interest. This is a matter that can only be properly addressed in the House that makes the budget, and is also charged with the responsibility of proposing taxes for this country.

As we approach this debate, my first plea would be that as Members of Parliament, we remain true to the mantra that “he who comes to equity must come with clean hands”. In this regard, we, as a House, are the very people responsible for the taxes that Kenyans are facing today. We are equally responsible for the prices that are informed by the decisions we debate and pass in this House as we make our budget. And no less, people like even my very good friend from my alma mater, Hon. Ndindi Nyoro, who served both as a Member and Chairperson of the Budget and Appropriations Committee at a time when some of the issues we are debating today were coming to place. It is important to remind this House that even matters touching on the cost of fuel, including the Road Maintenance Levy Fund (RMLF) , were considered and passed during his tenure as Chairperson of the Budget and Appropriations Committee.

This speaks to the honesty that we, as Members of this House, must uphold.

On a point of order.

Hon. Ndindi Nyoro, what is out of order?

Hon. Temporary Speaker, I would never have wanted to interrupt Hon. KJ, but he has mentioned my name adversely. Hon. KJ has been in this Parliament for almost 10 years. I think he knows better that the laws related to taxation, such as the RMLF, the Value Added Tax (VAT) , and others, are not the domain of the Budget and Appropriations Committee.

Hon. KJ, please, take time to read the Standing Orders and orient yourself. I hope you can become a better Member of Parliament.

Hon. Temporary Speaker, I do say this speaking to the principle of collective responsibility, that it was during the tenure of Hon. Ndindi Nyoro as the Chairperson of the Budget and Appropriations Committee that the RMLF came into place. At that time, he was almost mute on this matter, and perhaps he had not yet found the voice he now has as we debate the issue of the prices of fuel in this country. However, that is not what I rose to speak about; my point is that he who comes to equity must come to equity with clean hands.

This House must make decisions at this time. Some of these decisions are informed by matters that go beyond the boundaries of this country. The issues happening internationally, including the wars taking place around the world and even the situation in the Strait of Hormuz, do speak to the cost and prices of fuel today. However, this House has to be sensitive to the members of the public in this Republic, and even more so, operators who are directly affected by the rise in the cost of fuel, who are our constituents. Our business is to debate solutions, as informed by our mantra that we serve for the welfare of society and the just government of the people.

Additionally, we have to note that it is the budgeting season for this House. Some of the reliefs that we seek, we have to ensure that they are considered in the budget that is coming up. I dare say even ahead of time that there shall be resolutions that shall be passed by this House when we debate and pass the budget. We will speak to the matters that we are considering today.

Hon. Temporary Speaker, it must also be noted, as we are debating this issue, that we are not at liberty as Kenya to compare ourselves even with our neighbours because the situation that is affecting the world is being felt across the globe. Even as we talk about fuel prices in our neighbouring countries, we must be reminded that in places where the prices are lower, the fuel is not available.

I am reminded of an expose that was done by a journalist called Mr Alex Chamwada, showing Ethiopia, a country we compare ourselves to, having lower fuel prices, but does not have fuel to sell. We must commend the Government that there was foresight in the arrangements that availed fuel at a time of crisis. Unlike our neighbours, we are not queuing to get fuel. The last time Kenyans queued for fuel was in the last Government when prices were so high and even the remedies that were put were very punitive to Kenyans.

Solutions must be found in this House. We must start working in the direction of those solutions. Petrol came about as fuel, not more than 100 years ago and before that, there was coal. The world must start walking to the direction of green energy. I must commend people like Mr Moses Nderitu, an industrialist and a very forward-thinking Kenyan, on the innovations he has spearheaded including the electric buses that we are seeing on our roads.

It would be unfair for me to conclude without calling upon the financial institutions and banking sector to look into this matter as a Kenyan situation that needs reprieve. During the COVID-19 Pandemic, we saw banks moving towards cushioning Kenyans against some of the costs and if there is a time that Kenya must call our banking sector to patriotism, that time is now.

Hon. Temporary Speaker, I thank you for this opportunity and call upon Kenyans to also consider forward thinking as we even put...

Your time is up. Member for Embakasi West.

Thank you, Hon. Temporary Speaker. Right from the get-go, I thank the Speaker, Hon. Moses Wetang’ula, and the team that has brought up this issue of fuel. This is a very emotive issue. Today, in one of my WhatsApp groups, I wrote that Members of Parliament are reporting back to work from recess and everyone who was tagging me in the group asked that we discuss about the prices of fuel amongst other issues.

We are talking about a war that has affected the prices of fuel globally. This issue is not new because when the Ukraine war started, fuel prices were still an issue. It is good to note that the Ukraine war has now gone on longer than the Second World War. We now have an Iran war. We do not know how long this war is going to take, so that is something that we must bear in mind. Having learnt from that, we must anticipate what might happen because we know that war affects the prices of fuel. Palestine is at risk. We have Iraq, Venezuela and Cuba. There is a risk that there could be a further war in all these countries, maybe with the United States of America or one of the partners of the USA. So, that is a risk that we must put in mind.

Hon. Temporary Speaker, we must remember that tariffs are always affecting the prices of fuel. Sanctions are always being issued every now and then, not to mention the global economic trends as well as scarcity, which could be an issue in the future because we do know when the oil fields in various countries like Dubai and other areas will dry up.

The US dollar rate fluctuating up and down is another issue. We are not strangers to what happened in 2022, when the US Dollar affected us. Disease is another issue. We shut down the country just about six years ago because of COVID-19. We must accept that there is an Ebola crisis just across the border. There is still Hantavirus which had marooned a number of foreign citizens somewhere and they are still undergoing treatment.

Who knows what could happen? We must be alive to those issues because they will always be there. Once we accept that such challenges will always be there, we will move to the next step.

We currently have a G-to-G oil deal, which was designed more with supply considerations in mind rather than pricing. The G-to-G oil deal appeared to be very good in the beginning. However, having listened to some of the Members who have contributed, there is a problem with it. If it cannot respond to the issue of prices, then it is a bad deal and we must consider getting rid of it.

I will give a practical example. A number of individuals who have headed the Energy and Petroleum Regulatory Authority (EPRA) and the Kenya Pipeline Company (KPC) realised that there was a problem with the G-to-G deal and tried to find ways of bringing cheaper fuel into the country. Lo and behold! Unfortunately, they were fired and innocent people like Joe Sang lost their jobs. I did not want to go in that direction, but those who incited the firing of those individuals had interests. I am not afraid to say that even Faith, the KPC Chairperson, had interests in the matter. That is why they did not want anyone to attempt to go outside the G-to-G oil deal.

Systemic shocks will always exist. Therefore, we must think 12 months ahead. With regard to the RMLF, I propose that we retain it as it is because we lost a lot. All the 290 constituencies rely on it. Let us look at the matatu fares. Let us engage landlords to ensure that we freeze rent increases. Let us introduce food subsidies and promote Kazi Mtaani projects to protect disadvantaged Kenyans. The Kenya Power should begin exploring nuclear and coal energy.

Finally, it is time we considered introducing a fuel subsidy bond or an infrastructure bond that can be floated at a certain rate, perhaps 12 per cent, so that the Government can collect money. In exchange for reducing the RMLF, let us use that fund to subsidise fuel costs for Kenyans.

Let us have the Member for Busia County.

Thank you, Hon. Temporary Speaker. I wish to begin by cautioning Hon. Ndindi Nyoro that he is not the sole custodian or owner of truth in Kenya. He sat in a committee where he witnessed the unfair allocation of resources and said nothing, thereby misleading Kenyans. We must all accept that this is a global crisis, which Kenya did not create. When major oil-producing nations start fighting, the disruption will affect us and harm everyone, regardless of whether or not you have resources.

I was seated with my friends in Busia who own motorbikes, and as they spoke, I took notes. They told me that the Government has reduced some taxes and lowered diesel prices, but their motorbikes do not use diesel; they use petrol. Women in the villages said that they still use kerosene/paraffin lamps. They asked me to represent them. Why did they tell me all that yet they know that I am in the Broad-Based Government? It is because they do not want to politicise this issue or take it in the direction that my friend, Ndindi Nyoro, is doing. Let us not mislead Kenyans just because they will see us as being fairer.

On a point of order, Hon. Temporary Speaker.

What is out of order? You have mentioned the Member for Kiharu. Let us hear him. It is not a point of information; he is on a point of order.

Hon. Temporary Speaker, again, I would never have wanted to interrupt the Member for Busia County, but she has clearly put it that she sat down with the bodaboda riders in Busia, and they were requesting her to do something about the fuel prices. They were not saying this to you as roadside talk; it is for you to do something about it. That is precisely what I have done. That is why even Parliament has allocated me time to appear before the relevant committees from tomorrow, with the concrete ideas on how to lower fuel prices. If indeed, you mean well for our brothers, the bodaboda riders…

What is out of order?

It is out of order for the Member to keep on misinforming the House about my proposals which I enumerated before; concrete and objective. She now wants to politicise very objective proposals on helping the same bodaboda riders.

You have made your point. Hon. Omanyo, this is a House of debate.

Yes, and I am debating very nicely, Hon. Temporary Speaker.

You are free to make proposals, but without castigating other proposals.

Hon. Temporary Speaker, I went back to how he misled us when he was the Chairman of the Budget and Appropriations Committee. I realised that he is the one who put us in this trouble. I was, therefore, trying to remind him that he was also part of the problem. This crisis we are facing today has come a long way. We can, therefore, tag him along with the problems. Thank you. Can I now finish? I know this scarcity has cost…

Member for Kiharu.

Hon. Temporary Speaker, I think it is clear for Kenyans why to be Secretary-General, one actually needs to qualify.

Hon. Ndindi Nyoro and Members, we agreed we will debate with decorum. I also caution Hon. Ndindi not to cast aspersions on Hon. Omanyo. Hon. Omanyo, you have five minutes. You can choose to keep referring to Hon. Ndindi Nyoro’s proposals or put forward yours in your submissions.

Thank you, Hon. Temporary Speaker. It is good to have a reference first, then you give solutions. He was my reference. I agree that the pinch has got everybody; whether you have or do not. I am, therefore, thinking ahead. As we look for a solution, the Government has reduced a few things here and there, but we will still feel the pinch because it is not coming to an end soon.

I keep seeing in the news that there are people who gain from wars. I do not know what they gain. Whatever they gain is their problem. But as Kenyans, we should not focus on buying these machines that depend on petrol and diesel in future. This is because we do not produce these products. We are under the mercy of the producers. Kenyans thinking of buying motor vehicles in future should consider electric cars and electric motorbikes. We should also move away from using paraffin and kerosene which is also not very healthy for all of us. We should instead consider using other products that are not affected even if the producers and manufacturers of those products decide not to supply in Kenya.

Thank you.

Very well. Member for Marakwet West.

Thank you, Hon. Temporary Speaker, for granting me an opportunity to speak on this very important subject. Certainly, the issue of increase in the prices of fuel is an emotive issue in this country. I sincerely empathise with Kenyans who have to bear the brunt of the high cost of living that has been brought about by the high fuel prices. As Parliament, we have an obligation to defend the interests of our people. For that reason, we must sit down as a House and look at concrete measures that we must take into account, so that we shelter Kenyans from these high fuel prices. Either way, the increase in fuel prices will affect all sectors of our economy.

From the onset, I must appreciate the fact that the G-to-G agreement has assisted us as a country. I have watched the news in countries like Burundi and Ethiopia, where there is a massive shortage of fuel. Inasmuch as we want to criticise this G-to-G agreement, I support and appreciate the fact that there has been a constant supply of fuel in Kenya, courtesy of the G-to-G agreement, which provided for 180-day credit terms. Also, the G-to-G agreement has eliminated the need for monthly spot purchases, and that is why you see we have a consistent supply of fuel in this country.

This Government has focused on production subsidies rather than consumption subsidies. I have heard many Members here comparing the prices in Kenya with Tanzania. Tanzania has heavily subsidised fuel prices, and, of course, that has a way of affecting the economy of the country. In terms of production subsidy, for example, in fertiliser, when we subsidised fertiliser from Ksh7,000 to Ksh2,500, you have seen increased production in our farms.

As a House, I have said that we must also regulate oil marketers’ profit margins. If the high profit margins of the oil marketers are making the pump prices go up, then we must find a way to regulate the oil marketers’ profit margins so that, at the end of the day, the consumers benefit. I also agree with my colleagues here that we must diversify our sources of supply and

routes so that we do not complain about the Strait of Hormuz every time. We should not only look at a specific source of supply, but we must diversify as a country so that we get more oil sources.

Having said that, last week, or two weeks ago, we saw protests that were called by certain people on the issue of fuel prices. It is unfortunate that a few individuals took advantage of those peaceful protests to engage in acts that violated our Constitution. We saw muggings in the streets. We saw vehicles being burned. We saw property being damaged. I wish to remind our people, Kenyans, that we have one country that we must protect.

Article 37 of our Constitution talks about protests or picketing that are peaceful, and people should not be armed. Inasmuch as we have challenges with the issue of fuel prices and with the economy, we must engage in a civil manner and in a manner that protects the greater interests of our country. As a leader, I support a means that will lower the prices of fuel in this country. As a legislator, I will be progressive in engaging...

Your time is up. Hon. Nabii.

Thank you, Hon. Temporary Speaker. When a country goes through difficulties such as the ones we are going through, my expectation is that we close ranks. There is no fuel price for the opposition. There is no fuel price for those in the Government. There is no fuel price for a poor man, and there is no fuel price for a rich man.

Hon. Temporary Speaker, I am taken aback that we have emotionalised the debate instead of us closing ranks and looking for a viable solution for our people. When we had COVID-19 in this country, we closed ranks and both sides sat down and agreed on the way forward.

Very concrete proposals from either side have been put on the Floor here. We should pick those concrete proposals and put them into action as a country that wants to resolve an issue. At the end of the day, people want reprieve. The economy wants reprieve. This economy will collapse if oil prices continue to escalate. Fact.

I have proposals. I agree with the proposal Hon. Ndindi has put forward that we need to share profits by reducing the profit margins of oil marketers. That would give us some reprieve. I also propose that we look at an aspect of G-to-G and renegotiate, not just by looking at supply, but also price so that both variables are put in the agreement. It will give us some reprieve.

Thirdly, at this point in the country, I propose that we look for a middle way to provide subsidy for a period of six months as we monitor global politics. On the other hand, what are we doing in the long-term to our oil exploration in Turkana? What are we doing with all the coal in Kitui? It is right time to look for resources and ensure that we have our refinery as we go into exploring our oil in Turkana.

Fourthly, it is important that we also diversify our sources of fuel. We could source fuel from countries other than the Arab States that have to use the Strait of Hormuz. I plead with my colleagues that we cannot call each other names in the situation we are in now. We need to reason together. We need to look for solutions together. We should not bastardise the Government. We need to sit down as Members of Parliament and agree the direction we want to go to, to at least, give our people a reprieve and give the economy a spike.

Thank you, Hon. Temporary Speaker.

Very well. Member of Mogotio.

Thank you, Hon. Temporary Speaker. This is a very timely discussion and Motion because the moment we are in requires that we all come together devoid of our political affiliations. We need to have this discussion soberly without looking at which formation one comes from.

We are not an oil-producing nation. We are an oil-taker nation. The global prices being set not only affect us, but also our economy. We as a nation need to start looking into our future. What do we do to get away from this? We are slaves of fossil oil from other countries.

As we look for short-term discussions such as the discussion and the ideas that Members are putting across here, we need to think on how to be independent in future and how to survive in this harsh global environment. As a nation, we need to look at how we can harness that oil that we have in Turkana and put our refinery so that we cushion our own citizens when it comes to such a moment and such a time.

We also need to look at how we can move from oil dependency to electric vehicles and other things and diversify, so that we generate our own energy and go into electric cars and other things that can make this nation run without being over-dependent and being slaves of fossil oil that has made us to be where we are at such a moment when we are trying to recover from the economic problem we are in.

We were on a trajectory towards recovery, but now the oil prices and the global problem caused by America, Israel and Iran has put us here. As we look at this issue and discuss it soberly, it is also good for all of us to be honest in this discussion and not be hypocritical as we look at it and stop blaming the Government. Sometimes back when some of us were in Government, we had an opportunity to put proposals that could have changed the debt situation of our nation. Maybe we failed to do so at that time, but now it is fashionable because politically it is right to do so.

Our nation requires patriotism not only in the Government, but also from the private sector. As the Government looks for measures and as the Members of Parliament here discuss on measures on how to lower the prices, the private sector, such as matatu owners, should also look at a way of not hiking prices and taking advantage of the situation that we are in as a nation. When oil prices come down, they do not lower the fares on our roads.

Kenyans remain with the burden of paying expensive prices on our roads when we should have been patriotic enough and tried to cushion them. Even our banks should also cushion Kenyans and assist them by not auctioning them, selling their properties or putting pressure on the matatu owners and other people, so that we can cushion Kenyans from this pressure of the high prices.

Hon. Temporary Speaker, it is also a shame that those people who have been fashioning themselves as the united opposition are not in the House when we are discussing such a serious matter like this. They are the same people who have been posturing outside there as the defender of Kenyans, but when elected leaders are discussing issues touching on Kenyans, we do not see the faces of those calling themselves the united opposition. The same people who are shouting loud there are not here to give suggestions on what should be done.

As I conclude, the Member for Kiharu is my good friend and he has been my friend for a long time. However, two or three years ago, he was the Chairperson of the Budget and Appropriations Committee in this House. As the Chairperson in this House, he had an option, time and every other opportunity to relook into our debt situation because what is pressing Kenyans is our debt.

However, now he is telling us he wants to sit with the Budget and Appropriations Committee and he is seeking for the attention of the Chairman of the Committee to give suggestions yet for three years he has been the one receiving the suggestions. He should have assisted our country. He should have been able to...

Your time is up, Member for Mogotio. I know you are seated with the Member for Kiharu. You have confirmed you are friends. I want to indulge the Member for Machakos, Hon. Kamene, to make her submission.

Thank you, Hon. Temporary for this opportunity. I rise to contribute on this matter of continued rise of fuel prices in our country, a

situation that is now hurting ordinary Kenyans, industries, farmers, transport operators and the entire economy.

Today, the cost of fuel is no longer just an energy issue. It is now a cost-of-living crisis. When fuel prices rise, the price of food, transport fares and electricity also rise. The common mwananchi is suffering. I, therefore, support measures that we, as Parliament, should take to ensure Kenyans are relieved from the suffering they are going through. I want to thank Hon. Ndindi Nyoro because he has been at the forefront, trying to fight for and understand what the common mwananchi is going through. I truly respect all Members of Parliament. It is true we speak when we are outside, and even here, we want to speak out.

These are some of the measures that, indeed, when we come together, we will use to save this situation. We need increased transparency in fuel pricing by EPRA. We need that now more than ever. We need to create subsidies and ensure they benefit consumers directly, not middlemen. We are here, and this House is capable of doing all this.

We ought to strengthen oversight of the G-to-Government fuel import arrangements. When you hear everybody discussing this issue outside, they keep pointing at this arrangement, but we are always quick to avoid the questions that the common mwananchi and every citizen is asking, transparency and corruption. We saw two ships coming the other day. Total corruption. We have never seen anybody brought to book. No arrests have been made. What does that tell us? We are comfortable. This issue of Members of Parliament engaging in blame games that last time when you were there, nothing was done, and now you are talking, for heaven’s sake, our people are suffering and they need solutions.

Thank you, Hon. Temporary Speaker.

Chair of the Departmental Committee on Energy, Hon Gikaria.

Thank you, Hon. Temporary Speaker for giving me this opportunity to rise in support. I also want to thank Hon. GK, the Chair of the Departmental Committee on Transport and Infrastructure for moving this very important Motion of Adjournment for us to discuss this matter that is affecting the country.

The G-to-G arrangement resulted from an understanding of what Kenya was going through. We remember when this administration came into office, the US Dollar was at around Ksh160. Kenya needed huge amounts of dollars every month to purchase this very important product. So, beyond ensuring consistency in supply, the G-to-G arrangement also cushioned the pricing cycle and the cost of petroleum products.

Sometime back, after the Triton scandal, we came up with a very good system called the Open Tender System. It became a model used by many African countries that came to learn from us. The system was good, but because of the challenges we faced as a country, we had to look for alternatives. This administration came up with the G-to-G arrangement that addressed many of these issues. It also relieved the fiscal space we keep talking about. The war that is going on has brought the G-to-G arrangement into question. How we wish and pray every day and night that the war comes to an end. It is out of the war that we are where we are today.

Hon. Temporary Speaker, I appeared before the Budget and Appropriations Committee this afternoon to discuss how best we can handle the situation. Beyond the budget issues I was presenting, the Committee wanted to know about the fuel prices in this country. I took almost 20 minutes trying to explain where we are, the supply situation and the stock we have. They had many concerns.

Unfortunately, we have been asking for money for the National Oil Corporation of Kenya (NOCK) . We request for the money from the Budget and Appropriations Committee. During my tenure as the Chairman of the Departmental Committee on Energy in the Financial Year 2018/2019, we proposed this. When I took over the chairmanship in the 13th Parliament, we continued trying to get resources for NOCK.

I thank the Budget and Appropriations Committee because they allocated resources in the last financial year to relieve NOCK off the financial burden and debts it had. We look forward to more support this year. I thank the National Infrastructure Fund where NOCK, as a Government-owned enterprise, has been placed. We hope that these challenges will be over in the next one year, and NOCK will be back on its feet and will be given the responsibility.

There are questions about Turkana oil. The first batch of our crude oil will be sold by December this year. We have very good crude oil. The sulphur content is reasonable. We request Kenyans to be patient. These prices will stabilise with time. There is a waiver requested by the Ministry of Investments, Trade and Industry. If things go well, there will be progress in the next one month. The Government is doing so much in the oil industry.

We are contributing for five minutes. Member for Nairobi City County.

Thank you, Hon. Temporary Speaker, for giving me this opportunity to contribute. As we discuss concerns over rising fuel prices and the ongoing protests, let us be honest with Kenyans. We understand that increasing fuel prices will cause pain to our people. Transport costs will rise and food prices will be affected. Businesses will be under pressure. We must resist the temptation to oversimplify the issues and mislead Kenyans for political mileage.

The opposition is comparing Kenya’s fuel prices with those of our neighbours without giving the full picture. Kenya has one of the most structured and transparent fuel pricing systems in the region under EPRA. Our prices reflect international crude oil prices, exchange rates, taxes, levies, transport costs, stabilisation mechanisms and global tensions. Rising crude oil prices affect all the countries across the world. Taxes and levies contribute significantly to the pump price. Kenyans pay Value Added Tax (VAT) , Excise Duty, Road Maintenance Levy, Petroleum Development Levy and other charges.

I agree that Parliament must continue reviewing these levies to cushion Kenyans, where possible. Let us also tell Kenyans the truth. Some neighbouring countries are cushioning fuel prices through subsidies and delayed price adjustments. Kenya, instead, has focused on ensuring a stable supply while managing fiscal responsibility. This is where we must defend the G-to-G import framework which is constantly attacked politically. We must honestly ask ourselves whether it would be worse for the Kenyan economy to have controlled price increase or an actual fuel shortage. When fuel runs out, the economy does not merely become expensive, but it is paralysed.

We have seen neighbouring countries experiencing long queues, panic buying, rationing and supply disruptions. Kenya, despite the global shocks and foreign exchange pressures, has largely maintained availability of fuel. Public transport continues operating, hospitals continue functioning, food continues reaching markets and businesses continue serving Kenyans because fuel remains available.

The G-to-G arrangement was introduced to reduce pressure on our dollar reserves by allowing Kenyans to secure fuel on extended credit terms instead of immediate dollar demands. This has helped stabilise the market, protect the shilling from further pressures and avoid supply disruptions.

Hon. Temporary Speaker, fuel powers agriculture, manufacturing, transport, electricity generation and regional trade. A shortage would trigger inflation at levels worse than what we are currently experiencing. As we debate the matter, let us also stop reducing national conversations into an attack against President William Samoei Ruto. The opposition today is bent on demonising every action of the Government even when the intention is clearly to move Kenya forward. In so doing, they forget the important lesson from the greatest opposition leader the country has ever produced, the Rt. Hon. Raila Odinga, may he rest in peace. Even at the height of political tension, Raila Odinga understood one thing: Kenya must never burn because

of politics. No matter how difficult the moments became and even when he believed elections had not gone fairly, he reached moments where he chose the country over division, stability over chaos and dialogue over destruction.

When we agreed to work with President William Ruto through the broad-based approach, it was not a weakness; it was statesmanship. It was recognising that a divided nation cannot prosper. It was understanding that peace, stability and investor confidence are necessary for jobs, growth and opportunity. We cannot oppose development simply because it is being done by political opponents. When the Government renovates airports, improves roads, builds stadiums, modernises infrastructure, expands affordable housing to improve facilities like the Bomas International Convention Centre.

Hon. Mawathe.

Thank you for giving me this opportunity to contribute on this very important matter. The economy of a country runs on diesel. When the cost of diesel goes up, the cost of transportation of every item goes up. When the cost of transportation of every item goes up, it means the cost of every item will be passed to the common mwananchi out there.

The cost of living has gone up primarily because of the current cost of diesel. We are calling on this Government to please consider its citizens and reduce all these taxes that are in the cost of fuel. Some of the costs like the Fuel Levy and the VAT should be reduced temporarily, maybe for two or three months, so that we can reduce the cost of fuel for mwananchi. It is time this Government becomes responsible and reduce the cost of fuel for the common mwananchi.

Thank you, Hon. Temporary Speaker.

Hon. Lelmengit.

Thank you, Hon. Temporary Speaker. I would like to add my voice to this issue and to support. When fuel prices go up, they go up for everybody, whether you are in the United Opposition or supporting the Government. All of us in this country feel the pain, but we have to come to terms with this fact. We know the reasons for fuel prices going up in this country. It is the United States of America and Israel fighting against Iran. We understand that this is a global issue.

Hon. Member for Elgeyo Marakwet, you are totally out of order.

Thank you, Hon. Temporary Speaker, for protecting me from loud discussions. We can debate this issue all day, throughout the week and throughout the year. However, we have to look at what the Government can forego and what we are willing to take as citizens of this country. I have looked at how the Government comes up with fuel pump prices in this country. We have the Fuel Price Stabilisation Fund. We can play with it and see where the Government can work on it. We have the Excise Duty, the Road Maintenance Levy and the VAT. At the moment, the Government has cut VAT by 50 per cent.

Fuel generates revenue for this country. It is one of the largest revenue-generating sectors in this country. So, what are we willing to forego? Are we willing to forego the Road Maintenance Levy Fund, which we have already committed to repairing roads across the country? We are in a very rainy season at the moment and roads across the city and different parts of the country are in a pathetic condition. Are we willing to forego this and use bad roads? We have done securitisation of these funds. Are we willing to stop securitisation and stop

development of roads in this country? We also have to be alive to the fact that this is a temporary matter. I pray that in a few months this will be a thing of the past.

It is very sad that we see other countries experiencing fuel shortages because they did not plan early or because they preferred subsidies. Subsidising fuel too much means that we have to cut resources from other sectors like health and education in order to subsidise fuel, thereby paralysing other sectors of the economy.

The energy sector sat down and gave proposals on how we can structure taxes and gave a standard price of petroleum in this country. It is high time we come to terms with reality as Kenyans, that subsidies will overburden the Government and also reduce funding to other sectors such as education and health. We have also seen shortages in different countries in Africa including a country like Malawi where petrol and diesel cost close to Ksh500 per litre. We must appreciate that, at least, in Kenya, we have a constant supply of fuel, be it diesel, petrol or kerosene, only that prices are a bit high. We must also appreciate that we have many roads that we are maintaining and many roads that we have committed to develop. I urge the United Opposition not to politicise this matter. It is a sad reality affecting all of us as a country, but we have to live with it. Let us not politicise it.

Thank you so much, Hon. Temporary Speaker.

Hon. Members, the time being

Published by Clerk of the National Assembly