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Thursday, 9Th August, 2018 August 9, 2018 SENATE DEBATES 1 PARLIAMENT OF KENYA THE SENATE THE HANSARD Thursday, 9th August, 2018 The House met at the Senate Chamber, Parliament Buildings, at 2.30 p.m. [The Speaker (Hon. Lusaka) in the Chair] PRAYER COMMUNICATION FROM THE CHAIR VISITING DELEGATION FROM MACHAKOS COUNTY ASSEMBLY The Speaker (Hon. Lusaka): Hon. Senators, I would like to acknowledge the presence in the Speaker’s Gallery this afternoon of visiting members and staff from Machakos County Assembly Committee on Broadcasting and Library. I request each Member of the delegation to stand when called out, so that they may be acknowledged in the Senate tradition. 1. Hon. Conslas Kieti - Chairperson 2. Hon. Erice Musembi - Member 3. Hon. Paul Nyanzi - Member 4. Hon. Loisa Mamau - Member 5. Ms. Nora Muteti - Clerk Assistant 6. Ms. Emma Nthenya - Broadcasting Officer 7. Ms. Kathoki Mwendwa - Broadcasting Officer In our usual tradition of receiving and welcoming visitors to Parliament, I extend a warm welcome to them. On behalf of the Senate and my own behalf, I wish them a fruitful visit. I thank you. PAPERS LAID STATUS REPORT OF KWTA The Senate Majority Leader (Sen. Murkomen): Mr. Speaker, Sir, I beg to lay the following Paper on the Table of the Senate today, Thursday, 9th August, 2018: The third status report of the Kenya Water Towers Agency (KWTA) Disclaimer: The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate. August 9, 2018 SENATE DEBATES 2 (Sen. Murkomen laid the document on the Table) REPORT ON PUBLIC HEARINGS ON THE LOCAL CONTENT BILL, 2018 Sen. (Eng.) Maina: Thank you, Mr. Speaker, Sir. I beg to lay the following Paper on the Table of the Senate today, Thursday, 9th August, 2018: Report of the Committee on Energy on the public hearings on the Local Content Bill (Senate Bills No.10 of 2018). (Sen.(Eng.) Maina laid the document on the Table) STATEMENTS ALLEGED MISMANAGEMENT OF FUNDS BY KENYA POWER Sen. Khaniri: Mr. Speaker, Sir, I thank you for the opportunity. Pursuant to Standing Order No.46(2)(a), I rise to make a Statement on an issue of general topical concern regarding the mismanagement of funds at the Kenya Power and the latest unexplained increased electricity tariffs; a cost passed to the final consumer. Electricity is one of the most important amenities in the world today. People from all walks of life; from industries to households, schools, hospitals, small businesses and Government institutions, all require electricity for optimum performance of their day to day activities. It is hard to picture an office without a computer or a household without a mobile phone. Just the other day, a good number of senior management staff of Kenya Power was arraigned in court to face charges of abuse of office and loss of public funds through knowingly purchasing defective electricity transformers. It is astonishing that the Kenya Power, with the best and most experienced electrical engineers in the country, could purchase such large quantities of defective transformers, but corruption and need for quick kickbacks in the tendering and procurement process explains it all. While the senior management enjoys the fruits of their corrupt activities, the cost of paying for the defective transformers is passed on and distributed among the final users of electricity across the country. I have always questioned the rationale of replacing all wooden electricity poles with concrete ones all over the country even when the wooden poles are still new and strong. It is a common occurrence for the major newspapers in the country to carry a paid advertisement schedule of power blackout every week. This is usually termed as routine maintenance during which time the utility firm mostly undertakes the replacement of wooden electricity poles with the concrete ones. In reality, the pole replacement exercise is a business scheme used to rip off electricity to consumers to benefit a few influential and rich individuals. The benefits of Disclaimer: The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate. August 9, 2018 SENATE DEBATES 3 wooden poles are well-enumerated and include the fact that they are environmentally friendly. Using wooden poles also encourages tree-planting hence increasing vegetation and a wide percentage of small-scale farmers benefit from the practice. Currently, there are people with mature trees suitable for electricity poles but lack market as cartels have already oversupplied Kenya Power with concrete poles. Mr. Speaker, Sir, sometimes back between last September, 2017, and January, 2018, Kenya Power is alleged to have undergone a system upgrade to improve service delivery to the common mwananchi. The only thing that emanated from the system upgrade was unexplainable high bills. During the five months, power consumers did not receive their actual bills but rather only received estimates. When one checked with the Billing Department, he or she would be advised to record the readings from their metre and take them to the Kenya Power Office to be given their actual bills. This is the highest form of unprofessionalism and incompetence, especially considering the fact that there is a monthly fixed charge to cater for such services charges and employees whose only work is metre reading. At the end of the period, Kenyans were slapped with huge bills with no option but to pay because of the monopoly of Kenya Power. Poor services from Kenya Power is obvious for anyone connected to electricity in the country; from frequent power blackouts to poor customer services; long waits for correction of power problems and rude and corrupt personnel. Replacing a defective transformer usually takes Kenya Power a minimum of two weeks in urban centres while in remote areas up to even a month. Frequent power surges experiences have destroyed electronic household appliances and business machines and even when the company is bound to repair or replace such appliances, compensation is never forthcoming. At the height of the recent system upgrade at the utility firm, a lawyer requested affected clients to send him emails and tweets with complaints and within 24 hours the emails were in excess of 600. This is a clear indication of the magnitude of suffering Kenyans who are forced to endure the process of getting electricity from a public owned enterprise. The Last Mile Connectivity Programme is one of the most important electricity connection projects to be implemented in Kenya since Independence. Through the four- phased programme, the Government of Kenya targeted to increase electricity connection from 40 per cent in April, 2016, to 70 per cent of the total households in the country by April, 2017, and universal access by 2020. Official Kenya Power records show that by the end of the first phase, 314,200 were connected. This is commendable. However, the target is still far from being achieved and it might be derailed further if it is actually true that this programme has been hijacked by cartels. The Government should double its efforts in order to meet its projected targets, considering the second phase commenced late and up to now they have only managed to connect 22 per cent of the total targeted households. This programme must succeed in order for the country and the general public to get value for money on the loan financing it. Disclaimer: The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate. August 9, 2018 SENATE DEBATES 4 Mr. Speaker, Sir, the latest blow to Kenyans from Kenya Power is the new revised tariffs effective 1st August, 2018. It is a well-known fact that Kenya has had one of the highest electricity costs in the eastern Africa region. For instance, according to statistics by research of June, 2018, Kenyans were paying an average electricity tariff the equivalent of Kshs15 per kilo watt per hour compared to Ethiopia’s Kshs4.1, Egypt’s Kshs6, Uganda’s Kshs12 and South Africa’s Kshs9. One wonders why the Government would burden the consumers even more with the new tariffs that have increased the average total bill by up to 54 per cent for most consumers. The new tariff calculations are more confusing and unfair. It would have been more sensible and honest if the utility firm had removed the monthly fixed charge and reduced tariffs across the board. Electricity usage and connection has a multiple effect across the country. With the rising of power prices, there is an increase in production costs, triggering a further increase in prices. Apart from capital flight as a result of the high cost production, majority of Kenyans who are already overburdened by the high cost of living and increased taxation will be forced to endure more expensive electricity. Small-scale entrepreneurs will be forced out of the market or decide to downsize, further increasing the rate of unemployment. This is unfair and only an uncaring Government will allow its people to be exploited to such an extent. As a legislature, we owe it to our constituents to complain and demand better affordable power from Kenya Power to the citizens of this country. Kenya Power is a public enterprise that should strive to serve the general public above making profits. I thank you. The Speaker (Hon. Lusaka): Hon. Members, before I allow contributions on that, I have a brief communication to make. (Interruption of Debate on Statement) COMMUNICATION FROM THE CHAIR AMENDMENT TO SPEAKER’S RULES REGARDING MODE OF DRESS BY SENATORS WHILE IN THE HOUSE The Speaker (Hon.
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