Wednesday, 3rd December 2025

Serjeants-at-Arms, ring the Quorum Bell.

Hon. Raso, take the nearest seat. Hon. Members, I have a Message from the Executive on the nomination of a person for appointment as the Director-General of the Financial Reporting Centre.

Pursuant to the provisions of Standing Order 42 (4) , I wish to report to the House that I have received a Message from the Cabinet Secretary for the National Treasury and Economic Planning regarding the nomination of a person for appointment as the Director-General of the Financial Reporting Centre. In the Message, the Cabinet Secretary conveys that in exercise of powers conferred by Section 25 (2) of the Proceeds of Crime and Anti-Money Laundering Act, Cap. 59A, he has nominated Mr Naphtaly Kipchirchir Rono for appointment as the Director- General of the Financial Reporting Centre, and now seeks the approval of the House.

Standing Order 45 provides that upon receipt of notification of a nomination for appointment, such nomination shall stand committed to the relevant committee for consideration. In this regard, I hereby refer the Message, together with the testimonials of the nominee, to the Departmental Committee on Finance and National Planning for consideration.

Section 8 of the Public Appointments (Parliamentary Approval) Act, CAP.7F requires the committee to which such nomination is referred to, to consider the matter and table a report in the House within 28 days. Nonetheless, conscious of the fact that the House is scheduled to proceed for the long recess from Friday, 5th December 2025, I hasten to clarify that the counting of days with respect to the consideration of the nominee will cease during the recess period and resume when the House first sits upon resumption.

However, I urge the Committee to immediately commence the approval process and notify the nominee and the general public of the time and place for holding the approval hearing and, thereafter, table its report on or before Thursday, 26th February 2026 to enable the House to consider the matter within the stated statutory timelines.

Thank you.

Hon. Caroli Omondi.

Thank you very much, Hon. Speaker. I rise to present a Public Petition

regarding the status of ownership of L.R. No. 7545/3

(IR. 21038)

forming the Nucleus Estate of Miwani Sugar Mills Limited as succeeded by Miwani Sugar Company

(1989)

LTD

(In Receivership)

.

I, the undersigned, on behalf Mr Charles Owino Osewe of Post Office Box Number 3900-40100 Kisumu and concerned resident of Miwani in Kisumu County, draw the attention of the House to the following:

THAT, land parcel registered as L.R. No. 7545/3

(IR. 21038)

was alienated from land then owned and occupied by local communities specifically and solely for the purpose of establishing a nucleus estate for Miwani Sugar Mills Limited as succeeded by Miwani Sugar Company

(1989)

Limited

(In Receivership)

. THAT, towards the late 1980s, Miwani Sugar Mills Limited Company ran into financial difficulties and was reorganised by the Government of Kenya into Miwani Sugar Company

. THAT, in 1993, an individual by the name Mr Nagendra Saxena commenced proceedings in Nagendra Saxena Vs. Miwani Sugar Mills Limited, Miwani Sugar Company

(1989)

Limited

(In Receivership)

and 3 Others in the High Court of Kenya at Kisumu Civil Case Number 225 of 1993 and purported to have obtained an ex parte court order to recover Ksh114million debt from the two companies. THAT, it is on record that Mr Nagendra Saxena never appeared in Court in person, neither has he ever been seen anywhere within the Republic of Kenya, raising suspicion as to whether a person with the identity of Mr. Nagendra Saxena actually exists. THAT, efforts by the Ethics and Anti-Corruption Commission, the Directorate of Criminal Investigations and the Department of Immigration to trace the named person both in Kenya and India have all proved futile. THAT, on 24th December 2007, a company by the name Crossley Holdings Limited, which is believed to be associated with Kibos Sugar Company, purported to have purchased LR. No. 7545/3

(IR. 21038)

at a public auction at a sum of Kshs752million. THAT, the said public auction was supposedly conducted pursuant to the judgement made in Nagendra Saxena Vs. Miwani Sugar Mills Limited, Miwani Sugar Company

(1989)

Limited

(In Receivership)

and 3 Others by the High Court of Kenya at Kisumu in Civil Case Number 225 of 1993. THAT, no evidence has ever been produced by the parties to the public auction as to whom the Kshs752million was ever paid and by whom and the method of payment, raising suspicion on the authenticity of the purported auction and the payment claimed to have been made. THAT, in a subsequent Court of Appeal Case Nagendra Saxena Vs. Miwani Sugar Mills Limited, Miwani Sugar Company

(1989)

Limited

(In Receivership)

and 3 Others, Civil Appeal No. 261 of 2008 at Kisumu), the Court of Appeal issued its

decision on 29th July 2011 nullifying the purported public auction conducted on 24th December 2007 and the subsequent transfer of LR. No. 7545/3(IR. 21038) to Crossley Holdings Limited. THAT, further, the Court of Appeal affirmed that the Land LR. No. 7545/3(IR.

Hon. Milemba.

Thank you, Hon. Speaker and thank you, Hon. Caroli, for bringing that Petition. It is good that this House recently passed a law on how former parastatals and other State-owned bodies can be handled if they are to transition from what they were to private entities. More important are those sugar factories in the sugar belt. That story will not end with Miwani. I grew up in the sugar belt, and I know Miwani. The mass of land involved is massive, and that easily extends to Chemelil, Muhoroni and other areas. Those large masses of land, previously owned by those sugar factories before they went under receivership, and the companies and other suppliers to whom they owed money, are now being targeted by people who are seeking to take those lands. The lands are too large and too valuable. This House must establish the true position of who owns those land masses, which are essentially public lands, because the Government has shares in Miwani, Chemelil and Muhoroni sugar factories. They must be safeguarded for public development and not appropriated by individuals. It is even worse when Kibos comes in. I am interested in this matter because we once dealt with this matter. Kibos, a neighbouring factory, has taken advantage of the situation to try to seize land that was owned by Miwani. Therefore, the committee that will be dealing with this must address those matters, which will also recur in other sugar factories that have gone under, such as Chemelil and Muhoroni.

Thank you.

Yes, Hon. Oundo.

Thank you, Hon. Speaker. Let me take this opportunity to commend my colleague for bringing this Petition before the Public Petitions Committee of the National Assembly. The issue of land fraud that is perpetrated by unknown hands, both in the Judiciary, the legal profession and my own profession, is becoming a thorn in the flesh and is raising ethical and professional concerns that must be addressed. Apart from dealing with the substance of the matter, I request that the Petitioner consider reframing the Petition to include issues of professional ethics in respect of the entire transaction. For a registrar of any court to have conspired with a conman to do what is alleged is professional misconduct, which should be investigated so that the rules and regulations are reinforced to avoid such cases in the future.

To even go to the extent of forging a court case or a court file strikes at the heart of the rule of law and the integrity of the Judiciary. I, therefore, request that the Public Petitions Committee expand its inquiry beyond the substance alone. It must also be on record, and courts have held this repeatedly, that a title fraudulently acquired is merely a piece of paper. As one minister said some years back, a title acquired fraudulently has no force in law. With those remarks, I second the Petition and hope we will receive a report as soon as possible.

Thank you.

Thank you. I commit the Petition to the Departmental Committee on Lands, in view of the enormity of the matter, so that it can examine all the allegations raised, including forgery, fraud, acquisition of a fake title, a mock auction, and all issues in the Petition, and report back within the statutory period set out in the Standing Orders, which is 60 days excluding the recess period.

Yes, Hon. Julius Sunkuli.

It is a request for guidance. I am delighted that you have referred this matter to the Departmental Committee on Lands, because there has been a practice of referring most matters to the Public Petitions Committee, even when they lack the capacity to deal with land issues. What will happen with the other land matters that are already before the Public Petitions Committee? Is it possible that sometimes they can be allowed to widen their scope, so that they can sit jointly with the Departmental Committee on Lands, so that justice can eventually be reached? Given that there is not even a lawyer in the Public Petitions Committee, it is becoming difficult when we appear before them.

Do you want me to do so now, or on being moved by someone?

I will move it on a particular issue.

Yes, Hon. Owen Baya.

On the same matter, Hon. Speaker, with utmost respect to you, the question of whether petitions should only go to the Public Petitions Committee or may be directed to other committees was once debated here at length. The Deputy Speaker was in the Chair then, and we agreed to await a ruling of the Speaker on the matter. I have seen this…

It has not been brought to my attention yet. The correct position is this: In the absence of any mitigating factors in the Speaker’s view, a petition goes to the Public Petitions Committee. However, if the Speaker considers that a petition is sufficiently complex and requires scrutiny by a departmental committee that oversees the relevant department, then the petition may be directed accordingly. You have seen me refer some petitions to the Departmental Committee on Finance and National Planning, others to the Departmental Committee on Justice and Legal Affairs, and now this one to the Departmental Committee on Lands. If you want a comprehensive ruling, I will provide one.

I am guided and much obliged. I add that such a ruling would help to avoid claims that petitions are being discriminated against or deliberately redirected. A reasoned ruling would guide everyone.

Thank you.

Thank you. Yes, Hon. Tongoyo Gabriel.

Thank you, Hon. Speaker. On the same matter, the referral of this land petition to the Departmental Committee on Lands is a good idea. In particular, we had a case that went to the Departmental Committee on Lands regarding a parcel of land in Maasai Mara, known as Olkiombo.

Hon. Speaker, the Cabinet Secretary and the Principal Secretary appeared before the Committee. However, the Committee’s investigation can only be complete, if they visit Maasai Mara National Reserve. Land issues are so emotive, particularly in Narok County. One of the biggest causes of conflict, including where Hon Sunkuli comes from, are land issues.

Hon. Speaker, it has taken about two months, and I do not know what is happening. I need your indulgence to compel the Committee to visit Maasai Mara National Reserve so that they can report on the same.

I will look into the matter and advise you. Hon. Members, remember the Cabinet Secretary for Agriculture and Livestock Development is coming to the House. Hon. Owen, as soon as he arrives, let me know.

Next Order.

Leader of the Majority Party.

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

Leader of Delegation to the Pan-African Parliament (PAP) , Hon. Esther Passaris, is not here. Chairperson, Select Committee on Implementation, Hon. Wanjala.

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

Fifth Report of the Committee on Implementation on the Implementation Status of the Report on Petitions and Resolutions Passed by the House. Thank you.

Chairperson, Special Funds Accounts Committee.

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

Reports of the Special Funds Accounts Committee on its consideration of the following:

Chairperson, Public Petitions Committee.

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

Reports of the Public Petitions Committee on its consideration of:

Thank you, Hon. Janet. Vice-Chairperson, Departmental Committee on Defence, Intelligence and Foreign Relations, Hon. (Major) Bashir.

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

Reports of the Departmental Committee on Defence, Intelligence and Foreign Relations on:

Chairperson, Departmental Committee on Energy.

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

Report of the Departmental Committee on Energy on its consideration of the Energy (Amendment) Bill, (Senate Bill No. 42 of 2023) . Thank you.

Leader of the Delegation to Inter-Parliamentary Union (IPU) , Hon. Cynthia Muge.

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

Leader of the delegation to IPU in the United States, Hon. Fred Kapondi. Hon. Muge, are you also concerned with this? Next is the Deputy Speaker, the leader of the delegation to the Sixth World Conference of Speakers of Parliaments (WCSP) in Geneva.

Thank you, Hon. Speaker. I beg to lay the following Paper on the Table:

Let us hear from the Chairperson of the Special Funds Accounts Committee.

Thank you, Hon. Speaker. I beg to give notices of the following Motions:

Next is Hon. Bashir.

Thank you, Hon. Speaker. I beg to give notices of the following Motions:

THAT, this House adopts the Report of the Departmental Committee on Defence, Intelligence and Foreign Relations on its Inspection Visit to Kenyan Diplomatic Missions in the United States of America from 14th to 23rd May 2025, laid on the Table of the House on Wednesday, 3rd December 2025.

Thank you. Hon. Wanjala.

Thank you, Hon. Speaker. I beg to give notice of the following Motion:

THAT, this House adopts the Fifth Report of the Select Committee on Implementation on the Implementation status of Reports on Petitions and Resolutions passed by the House, laid on the Table of the House on Wednesday, 3rd December 2025.

Hon. Owen Baya, as we call the next Order, if the Cabinet Secretary for Agriculture and Livestock Development is within the precincts, usher him in.

Member for Westlands.

Thank you, Hon. Speaker. Pursuant to provisions of Standing Order 43 (1) , I wish to make a general statement regarding the commemoration of the International Day of Persons with Disabilities 2025.

Today, Wednesday, 3rd December 2025, the global community marks the International Day of Persons with Disabilities under the theme: Fostering Disability Inclusive Societies for Advancing Social Progress. On this auspicious day, the Kenya Disability Parliamentary Association (KeDIPA) , is pleased to join persons with disabilities, caregivers, organisations of persons with disabilities, and partners across the country and the world at large in affirming our shared commitment to building an inclusive, accessible, and just society for all.

Notably, this year's theme: Fostering Disability Inclusive Societies for Advancing Social Progress, is both a call to action and reflection of our national progress in advancing disability inclusion. An inclusive society is the foundation upon which genuine social and economic development is built. It is a society where every citizen, regardless of ability, can participate, contribute and thrive.

For the case of Kenya, this vision has been greatly advanced through the recent passage of the Persons with Disabilities Act 2025, a landmark legislation that modernises and devolves our national disability framework and aligns it with the Constitution and the United Nations Convention on the Rights of Persons with Disabilities.

Hon. Speaker, as KeDIPA, we proudly laud the steadfast leadership of Parliament in championing, shaping, and passing this transformative act. The commitment demonstrated by Members of Parliament, both in the National Assembly and Senate, affirms Kenya's dedication to equal rights, dignity, and expanded opportunities for persons with disabilities. The act is now in its initial phase of implementation, ushering in a renewed era of accessibility, inclusive governance, social protection, equity in employment, political participation, and strengthened institutions' accountability.

Conscious of the fact that true measure of this important legislation will be proven in full effective implementation, KeDIPA calls upon the House of Parliament to exercise its critical oversight role to ensure that all ministries, state departments, county governments and public institutions domesticate and operationalise the provisions of the Act without delay.

Equally, we urge this House to prioritise adequate budgetary allocations during the immediate cycle of national budgeting, including a supplementary budget in the first instance, so as to avail adequate funds for the full implementation of the Act.

As part of Parliament's progressive journey towards disability inclusion, KeDIPA also reiterates its long-standing recommendations that Parliament establishes a disability mainstream unit dedicated to championing inclusive practises within the parliamentary service and legislative processes. Among other benefits, such a committee will ensure full accessibility to parliamentary precincts and marshalling disability-responsive law-making across all sectors; championing systematic inclusion of persons with disabilities in parliamentary programmes, employment and public participation; and strengthening monitoring and reporting accountability mechanisms for disability rights of the national and county levels.

Hon. Speaker, on this International Day of Persons with Disabilities, KeDIPA reaffirms its unwavering commitment to working with Parliament, government agencies, development partners, civil society and communities to ensure that disability inclusion is not an after-thought but a foundational pillar in Kenya’s development agenda. We believe that social progress

cannot be achieved if millions of Kenyans with disabilities remain excluded from national decision-making, economic participation and social services.

Hon. Speaker, I urge Members of this House to model the way as we move forward with unity, urgency and boldness in entrenching disability inclusivity. Let us foster a Kenya where every person is valued, supported and empowered to contribute to our shared prosperity. This is not merely our legal obligation; it is our moral duty. Together, we can and must build a society where inclusion defines politics, development and our national identity. I thank you.

Thank you. Hon. Members, I join everybody…

You want to comment on this?

Yes.

Hon. Raso, a minute.

Thank you very much, Hon. Speaker. I appreciate Hon. Tim Wanyonyi for bringing the Statement. Disability in the old days used to come as a result of natural causes. However, nowadays, it comes with development and accidents among other causes. There are Members who come to this House walking on their two feet but by circumstances, go back home on a wheelchair. What he has presented has called upon this House to stand up for people with disability, whether in schools or communities, so that they can enjoy equal opportunities.

Hon. Speaker, I must thank you. Nowadays, when you walk around Parliament to the offices coming to the Gallery and Chamber, a lot of improvements can be seen. A lot of thought has gone into ensuring that the premises are wheelchair-accessible. History will remember this and you will stand out.

As far as the law is concerned, we must stand up and be counted. Although many issues are yet to be dealt with, this is the starting point. We congratulate Hon. Tim Wanyonyi and many others because they have given leadership in this country and, sometimes, under challenging circumstances.

Hon. Milemba, dakika moja.

Thank you, Hon. Speaker. I thank Hon. Tim Wanyonyi for that Statement regarding the International Day of Persons with Disabilities. The day is related and associated with United Nations (UN) since 1992. Today was that particular day. I thank him, and reiterate that there is need for the parent Ministry to work closely with Parliament and Parliamentarians, so that the celebrations can go deep to the constituencies or sub-counties and even lower. I know of a few counties who have celebrated this day but not all. Even in this House, not all the constituencies have celebrated this day. Partly because the sensitisation of the day is not done properly from the Ministry down to the other leadership. I ask that there should be a close working relation with the parent Ministry and the Parliamentarians so that we can celebrate those people come every 3rd December. We can include them and apply equity that they require.

One issue that affects the people living with disability is changing of membership cards. Every time, they need pay to be issued with a new card. This is an issue that the committee concerned or the Ministry must address so that we do not replicate the same card and…

Time up. Hon. Hassan, dakika moja.

Thank you, Hon. Speaker. I would like to add my voice and thank Hon. Wanyonyi for bringing up the importance of this International Day of Persons with Disabilities. I support the points he has raised. We have made some progress as Parliament in making the premises accessible by people living with disabilities. However, I am hopeful that we will carry out some of the changes that would be required in this Chamber

to bring in Members of Parliament with disability closer so that they can be more visible and have easier access to participating in the deliberations of the House.

That aside, I am in the Committee on National Cohesion and Equal Opportunity and more importantly, more emphasis is put on the way Kenyan corporations and Government departments deal with people with disability. We have found out that, hardly, any Kenyan Government ministry or parastatal fulfils the constitutional requirement of having 5 per cent of their workers from people with disability. To some extent, the mentality of those agencies is that, people with disability are not capable to work. However much, disability is not an inability. Therefore, this House needs to do more to ensure this legislation is fulfilled and many of those organisations can provide more opportunities to the people with disability.

I also agree with the card issue.

Time up. Hon. Harold Kipchumba. One minute.

Thank you, Hon. Speaker. I join my brother Hon. Tim and thank him for having issued this Statement. As I join other persons with disabilities in celebrating this day, we want to bring to the attention of the people that disability is no longer a charity affair but a developmental agenda.

I celebrate the many caregivers, specifically, mothers of children with cerebral palsy, autism and many other children who still lie at home unable to leave their beds and need care. Members of Parliament, the Executive and other agencies, specifically the Ministry of Health, needs to bring on board the drugs that are needed for life-long support of those children to be part of the essential drugs.

I call upon the insurance companies to bring in therapists, and pay for occupational therapists and physiotherapy which is life-long and very expensive. This is the day when persons with disabilities would stand up with a rallying call: “Nothing about us without us.”

Thank you, Hon. Speaker.

Thank you. We will end that debate there. Hon. Members, the entire House joins in commemoration of the International Day of Persons with disabilities, both in Kenya and worldwide.

Hon. Catherine Omanyo, make your Statement.

Thank you, Hon. Speaker. Pursuant to the provisions of Standing Order 259D (2) (b) , I rise to extend hearty congratulations to our athletes for their exemplary performance in the Deaflympic Games that were held in Tokyo, Japan from 16th to 25th November 2025.

I had the privilege and honour to attend the Deaflympic Games held in Tokyo, Japan, where Kenya was well represented by a contingent of 166 individuals which included athletes, team officials, interpreters, delegates and medics. The Kenyan athletes participated in five disciplines which were athletics, women’s basketball, men’s handball, golf and swimming. Notably, the athletes performed splendidly, winning a total of 15 medals being five gold, six silver and four bronze. The medal winners were as follows—

Thank you, Hon. Omanyo. Clerk-at-the-Table, call out Order 8 so that we can dispose it off.

Order! Members on their feet, take your seats. I will now put the Question at Order 8.

We now go back to Order 7. The Cabinet Secretary for Agriculture and Livestock Development, Hon. Mutahi Kagwe is in the House. Hon. Members, you recall that Hon. Kagwe was supposed to appear before this House on 19th November 2025, but he did not. The House was concerned about his non-appearance and the fact that a junior officer in his Ministry wrote to the Clerk explaining that the Cabinet Secretary was engaged elsewhere.

However, Hon. Kagwe has since written a letter dated 20th November 2025 to the Speaker, explaining the circumstances that led to his inability to appear on 19th November. The letter is copied to the Prime Cabinet Secretary, the Head of Public Service, the Leader of the Majority Party, the Principal Secretary for Parliamentary Affairs and the Clerk of the National Assembly. The Speaker has read the letter and appreciated the explanation. We forgive the Cabinet Secretary for not appearing, and we accept his explanation. That matter rests there.

We now move to the Questions of the day. Cabinet Secretary, Hon. Dorothy Ikiara has requested to ask Ordinary Question 82/2025 first because she has an urgent matter to attend to, together with Hon. Karitho, who will ask Question 84/2025. Hon. Dorothy Ikiara, proceed.

Thank you, Hon. Speaker. I beg to ask the Cabinet Secretary for Agriculture and Livestock Development the following Question:

Could the Cabinet Secretary:

Cabinet Secretary. The microphone has a problem. Clerk-at-the-Table, wapi fundi wa mitambo?

The Cabinet Secretary for Agriculture and Livestock Development (Hon. Mutahi Kagwe): Thank you very much, Hon. Speaker. At the outset, I once again reiterate my apology for my absence when I was previously summoned. As I explained in my letter, first and foremost, nobody has more respect for this House than I do.

Hon. Speaker, you and I were here 22 years ago when I was a Member of this House and, subsequently also, a Member of the other House. The institution of Parliament is one for which I have the greatest respect. Disparaging or demeaning this House in any way would be tantamount to demeaning myself, and I have no intention of doing that.

In response to Hon. Dorothy Ikiara’s Question, from the onset, tea is an extremely important crop for this nation. Tea is Kenya’s chief export, and Mombasa is the largest tea auction centre in the world. Given the position of tea in the agricultural sector, we take all matters concerning tea very seriously.

The payment model used by small-holder tea factories to pay for green leaf supplied by farmers is structured into a monthly payment called the initial payment, and a second payment, popularly referred to as “tea bonus.” The initial payment is an advance payment against farmers’ green leaf deliveries for the month, as the proceeds from the sale of tea have not yet been realised at that time. In this regard, tea farmers are paid an initial amount ranging between Ksh23 and Ksh25 on a monthly basis, as determined by the boards of their respective tea factories.

The second payment, popularly known as the tea bonus, is the balance of the total sales less the total cost of production, including the monthly payment. However, the second payment is dependent on three major factors:

channel, the TBK will work jointly with the private sector partners to implement and promote an online trading platform, e-commerce to enhance market access for Kenya tea and tea products. The objective of e-commerce platform is to provide a direct link between the tea consumers and the tea producers, thus resulting to a short route to market and increase tea sales, both value-added and bulk teas, by providing the consumers with a variety of high-value teas to choose from, convenience to the consumer, and to create brand awareness of Kenyan teas.

We have also enhanced diplomacy and marketing initiatives. Under the Africa Continental Free Trade Area (AfCFTA), the Government, through the Executive, has spearheaded several efforts to promote Kenyan tea in Africa, which is primarily for value- added teas. This is a good thing. Such has been done in Egypt, where allocation of space at the free zone near Alexandria was negotiated to facilitate the distribution of value-added tea in Arab Maghreb Union and the Gulf region. The same applies to Ghana, where repeat orders have been made since the flagging off of initial order for value-added teas under the Guided Trade Initiative.

Inter-Africa Trade Fair has also helped in Algeria to promote tea amongst African nations under the same AfCFTA. This was followed by the formation of a Joint Commission of Co-operation between Kenya and Algeria. In Morocco, a Joint Commission of Co-operation has been formed with value-added teas as a flagship project to help opening up of markets for Kenya green tea. The Government has also formed a Joint Technical Committee to unlock the stalemate on Kenya tea trade with Iran. I would like to point to the House that last week, there was a team led by my Principal Secretary, which visited Iran to negotiate on this matter. In addition, linkages of Kenya tea exporters with major retail outlets such as Walmart in North America is also being made.

However, Hon. Speaker, we also need to have a sustainable funding of tea industry programmes. Since the abolishment of the Ad Valorem Levy in 2016, funding of industry programmes like research, promotion, development, regulation and infrastructure has been reliant on Exchequer funding. Consequently, notwithstanding the increase in earnings from tea in the last 10 years, very little resources have been ploughed back into the industry programmes that are critical in order to make the tea industry sustainable. For example, the budget for promotion, which was in excess of Ksh100 million in 2016, over the years has been reduced to Ksh30 million, which means that the tea industry has stagnated with respect to market development. With its current budget, the board may not be able to implement the global tea industry market development strategy, which is key in addressing the glut that currently exists, thus causing the increased levels of unsold teas in Mombasa.

Kenya mirrors the strategies being used by major competing producers such as Sri Lanka, which has recorded world success in market development and branding of tea. Why? As a tea-producing and exporting country, Sri Lanka charges a promotion levy of 1 per cent, approximately US$2 million annually, for market research and development, and tea promotion. This gives our competitors an added advantage in the same markets we are all targeting. The development and gazettement of the Tea (Registration and Licensing) Regulations, 2024 to operationalise Section 53 of the Tea Act, 2020 which provides for a levy that will be used to promote Kenya tea, research, development, among other programmes, is truly a game-changer.

In terms of regulation and control of costs, as I said earlier, to mitigate against higher cost of production, factories, through decisions made in their Annual General Meetings, should be encouraged to invest in cost mitigation measures. Factories have also signed new management agreements with KTDA which, amongst other issues, include a reduction of the management agency fee from 2.5 per cent to as low as 1.5 per cent of the gross sales value, and adoption of costs of seconded staff by managing agents. In addition, a Cost Driver Analysis

(CDA), should be undertaken on the differences between the cost of production for tea factories from the East and the West blocks, and action taken to address those gaps.

In order to address the governance challenges contributing to inefficiencies, high operational costs, and governance gaps in tea factories, the Draft Tea Industrial Corporate Governance and Code of Practice will soon be gazetted to pave way for implementation. In addition, KTB shall enhance the scope of the random audit of all factories to help in identifying wastages and malpractices by the boards and curb them.

Hon. Speaker, sometimes, we are at a loss to understand why some boards would be in opposition of an audit, while we believe that every factory board should welcome an audit so that they can truly establish that there are no malpractices in their factories. In terms of the finalisation of the tea industry regulations and to address a myriad of challenges that are negatively affecting the performance of the tea industry and impeding it from realising its full potential, the TBK, in collaboration with the Ministry, is finalising the following set of regulations:

Hon. Ikiara.

Thank you, Hon. Speaker. I am satisfied with the measures that are being taken by the Ministry. However, I wish to reiterate that it should conduct proper follow-up, particularly on governance matters and ensure improvement in tea quality and reduction in production costs. This will prevent the House from revisiting the same issues next year. I am satisfied.

Cabinet Secretary, in addition to that, there is a Committee. Most Members who raised the issue on tea bonuses are not here. The Committee, chaired by Hon. (Dr) Mutunga, is currently sitting. They indicated that the report will be ready in a week or two. Committee activities close on 15th December 2025. We will await the outcome of the Committee, share the report and, if necessary, call you back on that issue. But since the Questioner is satisfied, let us proceed to the Question by Hon. Karitho.

The Cabinet Secretary for Agriculture and Livestock Development

: Hon. Speaker, let me confirm that we will emphasise on this exercise. Regarding the Committee, the Chairperson has been in touch with us, and we proposed a brief session to inform policy issues before the report is finalised.

I will allow Members from the tea-growing areas, both East and West of the Rift, to meet with you and review the report together so that they can inform the House.

Let us have Question 84/2025 by Hon. Daniel Karitho, Member for Igembe Central. Question 84/2025

Hon. Speaker. I rise to ask the Cabinet Secretary to:

Cabinet Secretary, the response to that should be shorter than the previous one.

The Cabinet Secretary for Agriculture and Livestock Development

: Thank you, Hon. Speaker. Khat, popularly known in Kenya as miraa, is a major crop for trade and consumption for decades. There are about 110,000 farmers growing khat on approximately 360,000 acres, benefiting over 1.4 million people, either directly or indirectly. Annual production is estimated at about 32,000 metric tonnes, valued at approximately Ksh13 billion, based on the prevailing market price of Ksh400 per kilogramme. About 80 to 90 per cent is consumed locally, with the remainder exported to different destinations.

Somalia is the main export market, consuming over 95 per cent of the total export volume. Regarding the Member’s Question, the average quantities of miraa exported daily to Somalia range between 13 and 17 tonnes as annexed in my Report according to the AFA Integrated Management Information System. Export volumes vary depending on orders placed by Somali importers. Following the EU and Netherlands bans in 2011 and 2012, Somalia has been the main export market. Since the opening of the Somalia market in July 2022, Kenya has exported a total of 17 million kilogrammes of fresh miraa by October 2025.

Hon. Speaker, there is a duplicity in the question. I will read the next one, which will answer the first one.

In response to the second question, why the official data in Miraa exports to Somalia remains inconsistent, the quantities of Miraa exported at any particular moment by exporters are dependent on market requirements, orders placed by the market, space available on the cargo airlines, and produce availability, among others. The Ministry, through the Agriculture and Food Authority (AFA) and other partner government agencies, facilitated trade by issuing required clearance documentation based on the volumes declared by miraa exporters. Export data obtained from AFA and KenTrade is consistent. All the three agencies have their systems integrated. The final volume airlifted is indicated in the air manifest that remains with the Kenya Civil Aviation Authority (KCAA). The export and clearance process from farm to aircraft loading is shown in Annex 2. The main entry point for miraa ferried by air from Kenya to Somalia is Mogadishu International Airport from where distribution to other towns and markets commences. Currently, no miraa export to Somalia from Kenya by road or sea has been recorded since the year 2022.

There are some planned interventions in response to what the honourable Member has asked. They include:

Hon. Karitho.

Thank you, Hon. Speaker. The questions have not been adequately answered. First and foremost, I must make it clear to Hon. Waziri that on the issue of the tonnes supplied, they are saying it is 15 tonnes. We bring more than 50 pickups every day. Every pickup carries more than one tonne. The Cabinet Secretary needs to have some clarification and a well-done report, because the information he has is not true. Forty pickups, we should be talking about 40 tonnes, not 13 tonnes. We are denying the Government revenue, because whoever is talking whatever is above 15 tonnes is not known.

Second, I must make it clear to the Cabinet Secretary that the research institute established in Meru has not taken off, is not completed, and there is no ongoing activity there. Therefore, no research has been done.

Third, the Cabinet Secretary claimed that we have a market in Djibouti, but this is untrue. We do not have any market there. No Miraa is exported from Kenya to Djibouti. All the miraa that goes to Djibouti comes from Ethiopia. We have been denied the opportunity to supply miraa to Djibouti and yet, the report states that we are supplying miraa there. The Government revenue was used to create that market, which does not exist. The report is unclear,

and the Cabinet Secretary should review these facts, provide an accurate report, and present the true situation concerning all the issues related to the Miraa industry. Thank you, Hon. Speaker.

Hon. Farah Maalim.

Hon. Speaker, I would like to draw the attention of the Cabinet Secretary to how the National Authority for the Campaign Against Drug Abuse (NACADA) has classified miraa. The study classified miraa and muguka as drugs containing the psychoactive substances, cathinone and cathine, which stimulate the central nervous system. When chewed, they have a euphoric effect.

Is the Cabinet Secretary aware that this drug is banned in the entire western world and other countries, including our neighbouring countries of Tanzania and Uganda? In Tanzania, for instance, if you are found with miraa, you will spend years and years in jail. Why does the Government allow a drug to destroy our people and some of our neighbours? Why can we not have an alternative to miraa? We should use those farms to plant coffee, tea, and other crops that can benefit this country and not destroy our people.

Hon. Karitho, what is it?

Hon. Speaker, I want to make it very clear to the Member that miraa is not the only plant that has been identified by NACADA as a drug. Even coffee and beer have been classified by NACADA as drugs and yet, Kenya Breweries Limited (KBL) and British American Tobacco (BAT) run openly. It is not just miraa that has substances with drug effects. In addition, the cathinone and cathine in miraa are of less effect on human beings than whatever is in tobacco.

Members, instead of asking the Cabinet Secretary questions, you are debating among yourselves.

Hon. Speaker, I just wanted to make it clear to the Member that the effects of miraa on human beings are less than those of coffee, tea and cigarettes. So miraa is safe. I think that even my friend Hon. Farah, has been using miraa for many years. The Member is preaching water…

Yes, Hon. Farah.

Hon. Speaker, this young Member of Parliament from Meru is half-Somali, if you look at him very closely. I have never consumed miraa in my entire life. I will be turning 70 years old next year and I can assure you that I will never consume miraa. It is a drug not just in Kenya, but all over the world. Do you think that the Americans, British, Scandinavians and even Tanzanians, our next-door neighbours, do not know what they are doing? The Member needs to apologise.

Order! This is not a tiff between the two of you. Yes, Hon. Yusuf. Cabinet Secretary, note the questions that are being asked by Members.

Thank you, Hon. Speaker, for giving me this opportunity. I just want to add that the Kenya Medical Research Institute (KEMRI) …

This is not a debate. Ask questions to the Cabinet Secretary.

Hon. Speaker, before I ask my question, I would like to add that KEMRI has classified miraa as a drug. Could the Cabinet Secretary provide details on the nationwide animal vaccination campaign?

Order, Hon. Yusuf. You are a senior Member of the House. I have given you an opportunity to joyride on Hon. Karitho's Question. You should not ask your own Question.

Hon. Speaker, on Hon. Karitho’s Question, I just wanted to clarify that KEMRI has declared miraa as a dangerous drug.

Thank you, Hon. Speaker.

Cabinet Secretary. The Cabinet Secretary for Agriculture and Livestock Development

: Thank you very much, Hon. Speaker. On the first matter raised on the differentials in tonnage, as I said earlier, we are aware of some malpractices within that industry. I spelt out four specific measures that we will take to address the existing gap. There is no reason for me to say anything again because I would give the same measures that we have given. I am convinced that by the time we are done with this exercise, you will be satisfied. The data that the Member has will closely match with the data from the Agriculture and Food Authority

(AFA)

. Therefore, I acknowledge that there are malpractices in the trade, but we are trying to address the issue using the measures that I have given.

On the question of Djibouti, I did not say that they are buying miraa from us. I said that the Government of Djibouti has allowed us to export miraa to their country. Some business people have approached AFA to be licensed to export miraa to Djibouti. It will be business-to- business. I have no doubt in my mind that there will be people who will do that business. There are also people from other countries, including Somaliland, that have proposed to export miraa from Kenya. But there are also limitations because of the geopolitical matters in that region, as you well know. For example, there is a challenge in the transportation of miraa from Kenya to Djibouti. We cannot export miraa via Ethiopian Airlines because the airline declined on grounds that Ethiopia grows miraa and, therefore, Djibouti should be their market. Those are some of the complications within the systems. But we are trying to address them amicably and diplomatically, in certain areas. We are also using force while demanding transparency in the other areas.

On the issue raised by Hon. Maalim, it is important to note that there is a Bill by the Deputy Speaker of the Senate to remove miraa from the NACADA list. This is a pretty emotive issue across board and I cannot resolve those particular differences. But for the moment, miraa is a scheduled crop in our laws. Consequently, until and unless something changes, we will continue to trade in miraa. We are also encouraging farmers in all regions to practise mixed farming. For example, AFA Directorate has been distributing avocado to areas where miraa is grown so that with time, farmers will have choices on what to export, whether miraa or avocado or macadamia.

I submit, Hon. Speaker.

Thank you. Hon. Onyango K’Oyoo, ask Question 83/2025. Question 83/2025

Thank you, Hon. Speaker. I would like the Cabinet Secretary to clarify the terms and conditions of the lease agreement of the State-owned sugar farms, including how the Government intends to invest or utilise the lease proceeds for the benefit of the local communities. This is as a result of the President’s recent revelation that the Government intends to sell parastatals and ring-fence the money…

Order, Hon. K’Oyoo. Read the Question as you framed it.

Hon. Speaker, I beg to ask the Cabinet Secretary for Agriculture and Livestock Development the following Question:

Could the Cabinet Secretary:

What was declared a nullity, the case or the sale? The Cabinet Secretary for Agriculture and Livestock Development

: The sale, Hon. Speaker, was declared a nullity in accordance with the report we have.

So, it is not the case. The Cabinet Secretary for Agriculture and Livestock Development

: Following that, in 2008 the appeal was made and jury heard, but was also dismissed. The court also reiterated the position that the proceedings that were used to effect the sale were also null and void.

When the predecessor of the Kenya Sugar Board, Agricultural and Food Authority commenced measures to lease the land, Crossley Holdings Limited filed yet another suit at the Kisumu Environmental and Land Court, being Petition No.6 of 2020. Crossley Holdings Limited versus the Cabinet Secretary, Ministry of Agriculture, Livestock and Fisheries and others. Despite the court being notified that the issue regarding the legality of the arranged purchase had been settled by the Court of Appeal, the presiding Judge, Justice A.O. Ombwayo, delivered yet another judgment declaring Crossley Holdings Limited as the owner of the property. Miwani Sugar Company Limited and the Attorney-General have filed an appeal at the Court of Appeal being Civil Appeal No.E207 of 2021.

How can a junior court override the Court of Appeal? The Cabinet Secretary for Agriculture and Livestock Development

: Hon. Speaker, I claim no authority in law. As it stands, there are two conflicting judgments on the issue of ownership. One from an Environmental and Land Court and the other from the Court of Appeal.

The Cabinet issued a memo that directed the Ministry of Agriculture and Livestock and the Attorney General to enter into an amicable settlement with Crossley Holdings Limited and record a consent. This process is still ongoing. I submit.

The next Question is one for Igembe.

Of course, Cabinet Secretary, there has been a Petition presented before the House this afternoon on the same matter and, at some point in time, your Ministry may be caught in the crossfire.

Hon. K’Oyoo?

Thank you, Hon. Speaker. I agree with the Cabinet Secretary on certain aspects. I only want to inform him that we will need valuation reports of the belongings for various factories before the lease was done. So, this will inform whether they were done properly or not.

If possible, we would want to know the workers' plight. What was pledged and agreed to during the leasing has not been done for workers and suppliers. We want those issues to be addressed properly.

I have very little to say when it comes to the elephant in the House. The Hon. Speaker has spoken. The Court of Appeal judged the matter you have read out. It was the Apex Court then. We cannot get the judgment of the Court of Appeal reviewed in the Environment and Land Court. Somebody is trying to subvert the law. We would want your Ministry to be as straightforward as you are. We are trying to address it from other quarters.

We also want to know the position of the law courts. When those factories were parastatals, the Government provided for directorship from the locals. But now, with the lease going on, I do not know how the interests of the locals are going to be taken care of. Are they going to get the usual known by-laws on people to represent the interests of the local community?

In supplementary, this House has passed the creation or the reconvention of the new Kenya Sugar Board, which is very useful to the farmer on the ground. However, due to a plethora of legal actions, I am unsure what steps your Ministry will take to ensure the Board is fully operational. I rest my case.

The Cabinet Secretary for Agriculture and Livestock Development

: Thank you very much.

Hold on. Let us take mwalimu Milemba.

Thank you. I really got interested in the Cabinet Secretary's speech on Miwani. He explains how the Court of Appeal made a ruling and later, the Environment and Land Court also made a judgment.

It never made a ruling. It made a judgment.

Allow me to use ordinary language because I am not a lawyer like yourself.

Hon. Oundo.

Thank you, Hon. Speaker. I have heard the Cabinet Secretary talk about monopoly and dominant players in the market. I want to bring to his attention that the entire Busia County and the neighbouring region have only one sugar company, Busia Sugar Company. They are indeed involved in some very mischievous and probably market-predator activities. They are leasing swathes of land to grow sugar-cane and paying the local owners of the land a very small amount of money.

Secondly, there is also a very interesting scenario, which probably may not be his, but one for him to note. On the other side of Uganda, there is an Indian company that has leased a large portion of land from Uganda and has tilled all the way to the Kenyan land. I will bring up a substantive matter on that. But I just wanted to bring to his attention that if he hears we have confiscated the sugar-cane from the area we believe is in Kenya, and take it to wherever we want to take it, he should not be surprised. It is not a diplomatic matter, but it would be self- defence. Thank you, Hon. Speaker.

The Cabinet Secretary for Agriculture and Livestock Development

: Thank you very much, Hon. Speaker. On Hon. K’Oyoo's issue of the valuation, indeed, there were valuations that were done. As a matter of fact, I presented to the Departmental Committee on Agriculture and Livestock a document that had all those details, but I will be happy to provide the same. On the issue of employees, what we had agreed and did with the employees was to agree with the factories that, for a period of at least six months, nobody would be laid off. They had to assess who they would need and not need.

There are two circumstances here: There are people who are leaving the factories. Obviously, they are not very happy because of that, and I sympathise with the situation but there are also younger people now who are joining the factories. You will see it even in the newspaper advertisements.

As this modernisation process is taking place, you will find advertisements for Chemelil Sugar Factory and others who are looking for individuals, young engineers and technicians and so on, for hire. Even as some people are leaving, others are also going in. We have agreed with those people that we will try and treat them as humanely as possible.

Further, we are under instructions from not less than the President of the Republic, President Ruto, that no individual employee is going to be paid. Most of the debt that we had with the employees is actually Government debt, on the grounds that we were the shareholders. We are the ones who owed those people monies from NSSF and NHIF, and deductions as such to those people. It is a Government debt so the Government has to pay the employees who are staying and those being let go by the investors.

On the issue of the sugar board, you will recall that a while back, the Agricultural and Food Authority (AFA) experienced exactly the same thing. In its wisdom, this House passed an Act that included the selection or the election of people for the Sugar Board in certain zones. There is litigation galore on this matter. In the first instance, there are litigations regarding the

zones, where, for example, some people in Bunyala may not want to be in Miwani and so on, in terms of the regional makeup.

Secondly, even within the regional makeups themselves, there will be litigation regarding who is being selected. We might have no choice but to come back to this House and seek amendments to the Act to allow for faster implementation of the Act. It took five years for AFA to come back to the House and get those amendments. I hope it can be done faster for this. Otherwise, it is indeed quite feasible that it can be delayed for a long time, not because of the Ministry's fault, but the field’s and how it is. We have already established a committee.

Cabinet Secretary, the Bill passed and it is now the Sugar Act. I come from the sugar zone. There are people who have been campaigning continuously to be elected as directors of the Kenya Sugar Board for the last three years. It is not fair to those ordinary farmers. You know how expensive campaigns of any election in this country are. Something must be done. Approach Parliament through the leadership of the Majority Party if you want it to assist you.

The Cabinet Secretary for Agriculture and Livestock Development

: Thank you, Hon. Speaker.

As proposed, I believe that the way out is to approach Parliament so that we make some amendments to allow faster appointment of board members. Just what you have said is, in itself, a problem, because that is what is happening there. You will still go through litigation when you eventually get somebody elected. We know our country is a pretty litigious nation.

On Miwani, yes, we in the Ministry are as concerned as the people of Miwani. As you can see, it is a litigation matter that has been going on for almost 30 years. I think the decision to try and resolve the matter through the existing Cabinet memo is probably the way out of it. Farmers and the people can decide whether they feel the settlement is fair once it is made.

Hon. Speaker, this is a matter I am continuously engaging with the Attorney-General as the legal mind of the Government.

On the issue of Busia Sugar Company, I am aware that there are two factories in Busia area. I also know the issue of Uganda in terms of transport. Let me make it clear that, as much as we have invested and leased sugar, we are not yet sugar-sufficient in Kenya. Let me clarify that so that you do not avoid acquiring sugar from Uganda when we might still need it. The four sugar factories we are talking about were downtrodden for many years. Even though the production of sugar went higher last year from about 500,000 metric tonnes to about 814,000 metric tonnes, our consumption is still over a million tonnes. The long and short of it is that we have been relying on Common Market for Eastern and Southern Africa (COMESA) sugar to fill the gap.

As we embark on the modernisation of the factories, we are likely to do two things:

Is Hon. Adan Haji in the House?

Hon. Speaker, I beg to ask the Cabinet Secretary for Agriculture and Livestock Development Question 18/2025.

Hold on, Hon. Haji.

Yes.

You filed this Question yesterday. Was it you or another Member?

I did it.

I thought it was Hon. Abdikadir.

I am the one who filed it.

Is it by private notice?

Yes.

I remember the Cabinet Secretary called me last evening to tell me he had received the Question. He was unable to assemble his team to assist him to put together the answers. Let him tell us if he is ready to answer it. If he is not, I will forgive him.

The Cabinet Secretary for Agriculture and Livestock Development

: Hon. Speaker, indeed, I am not ready to answer this Question, but I would like to mention a few things.

If you are ready to answer the Question, do it. It is a very simple one. The Cabinet Secretary for Agriculture and Livestock Development

: Let me explain the vaccination process that is currently going on in the country.

Firstly, as you will remember, there was resistance to the vaccination process in the Arid and Semi-Arid Lands (ASAL) regions and other parts of the country because it was politicised.

It was politicised. The Cabinet Secretary for Agriculture and Livestock Development

: Vaccination is a crucial part of our progress, especially if we want to enter the export market and practise good standards for our people, in terms of meat consumption, and the health and economy of those in the ASAL region who practise livestock farming. Since then, we have started a very healthy vaccination process. We have started it via e-voucher and an electronic digital system called Anitrack. This is the system we are using so that we vaccinate the animal and put identification methods on it. This way, we know which animals have been vaccinated and which ones have not. This is what we are rolling out. The Anitrack system has been tested in Government farms and livestock. We are now rolling it out in some counties. We are happy because county governments have quickly adopted this method of vaccination.

The vaccination exercise is going on, particularly for two diseases: Foot and Mouth Disease (FMD) and PPP. We vaccinate in accordance with the measures identified by the Veterinary Department of the Ministry. We want mass vaccination. If we vaccinate our animals continuously for three years, we will be declared free of FMD. Many countries refuse to take our meat because they know FMD exists in our country. In fact, you will remember there was a President who visited us and was given some animals from Kenya by our President. However, our Veterinary Department did not allow them to leave because of FMD. So, it is crucial that the vaccination exercise is done scientifically. There is no point of vaccinating cows, if you

cannot identify the ones that have been vaccinated and the ones which are not vaccinated. Then, they mix, forcing us to start again.

I appeal to Members, especially from the ASAL region and other areas which keep cows and practise dairy farming, to accept this digital system we are going to use for animal identification, so that the exercise is scientifically implemented.

Cabinet Secretary, that is a general policy statement. Do you have the numbers the Question is asking for?

The Cabinet Secretary for Agriculture and Livestock Development

: Hon. Speaker, I do not have the numbers. I pledge and accept to provide them to the Member.

Hon. Yusuf.

Thank you, Hon. Speaker. As we said earlier, the Cabinet Secretary is not ready with the answers. I request him to provide written answers. It is not the first time Kenya is vaccinating against FMD and PPP. When I was 21 years old, I joined the Department of Veterinary Services. We have been vaccinating animals. What is different now is the identification. Some of us are advocates of the vaccination process. When mass vaccination was declared on 30th January 2025 and it was politicised, some of us campaigned for it to take off. Unfortunately, it has not started in my constituency or county. That is why I asked this Question.

Please, give us written answers for this Question. If the vaccination has not started in the ASAL areas, we are ready to advocate for it. We are there to convince our communities. Please, let it start because we know the value of vaccinating those animals.

Thank you, Hon. Speaker.

Yes, Hon. Raso and then Hon. Rindikiri.

Thank you very much, Hon. Speaker. I think you have indulged us on this Question. The Cabinet Secretary has attempted to globally answer why disease-free zone is important in Kenya. However, I want to pose two general questions that are linked to the same issue: drought. The rains have failed in the ASAL areas. We might face the drought of 2019 to 2022 again.

First, what is it that you are planning so that we do not face the colossal losses that we experienced that time where we lost almost 3,500,000 livestock? Also, last year, there was the Livestock Board that was gazetted which will be helpful to your work in the livestock sector. We do not hear anything about it. Is it there? Is it active? Has it been operationalised? Please respond to us, as livestock keepers and people from Arid and Semi-Arid Land (ASAL) we are really concerned that the livestock board is not in place. Thank you, Hon. Speaker.

Hon. Rindikiri.

Thank you, Hon. Speaker, I come from Meru County but specifically we are concerned about what is defined as ASAL area. That is Laikipia North, Isiolo North and Laikipia East. In many cases, we fall victim to drought and diseases. My question first is when are we going to receive vaccination programme for each county or constituency because what the Cabinet Secretary is the saying is that we will wait until they agree on certain things. I think the Cabinet Secretary should give us a deadline.

Hon. Speaker You are a joy rider. Just ask one question.

It is very important because he knows where we come from and there is an issue. Vaccination is one issue, but I want to thank the Government for ensuring that the prices of vaccines have gone down. That is a plus but now the problem is the availability and the supply is a serious question. Thank you, Hon. Speaker.

Hon. Oyula.

Thank you, Hon. Speaker. I just want to ask an additional question on vaccination. Can the Ministry extend vaccination to Busia County and

in particular Butula Constituency? Secondly, we have a lot of tsetse flies in our areas. Most animals die because of the East Coast Fever (ECF) that is caused by tsetse flies. What is the Ministry doing to eradicate tsetse flies in some of our areas? Thank you.

Hon (Prof) Jaldesa.

Thank you. I think what the Cabinet Secretary confessed is that he has not educated farmers and given affirmative action to educate the farmers on the significance of vaccination and that it plays a major role in preventing avoidable deaths. Come January to March 2026, we are going to face an impending drought. Those farmers are going to lose hundreds of millions of their livestock. What are the mitigating measures the Cabinet Secretary has put in place to save those animals?

Hon (Maj) Bashir.

Thank you Hon. Speaker. I think mine is just in line with what Professor has said. Hon. Cabinet Secretary, you mentioned that you have not yet started vaccinating in the region and I am sure probably you are rolling it out now. As you roll out, remember we have a drought that is ravaging parts of that region, Wajir, Mandera and Garissa. As you plan to vaccinate, what plans have you put in place to mitigate the current drought situation because it is affecting livestock in that region? Thank you.

Cabinet Secretary, can you answer those? (Inaudible) Clerk, what has happened to the microphone? Have you muted it? Where is the other microphone? Is it working?

The Cabinet Secretary Ministry of Agriculture and Livestock Development

Mutahi Kagwe): Yes, it is working. Thank you very much Hon. Speaker.

At the outset, as I said, I was not intending to respond to this particular question because I do not have the details that the Members would like to have. I do commit to giving all the details that have been asked for. Let me just say this in terms of policy, and policy establishment area. In terms of the drought, indeed, the Members are right, that there has been a debate year- in, year-out. The proposal that is there within the Ministry of Agriculture is as follows:

Cabinet Secretary, as a matter of personal interest, I am also a livestock farmer. I lose between six and 10 animals every year due to tsetse flies in Bungoma. Bungoma, Busia, Kakamega, Trans Nzoia, stretching down to Siaya are in the same ecosystem. We have not seen any activity in this area. Could you step up the control of tsetse flies and treatment facilities?

Hon. Charity Kathambi, you have just walked in and I see you raising your hand. Give her the microphone, and then we will close with Hon. Nabii.

Thank you, Hon. Speaker. I wish to take advantage of the presence of the Cabinet Secretary for Agriculture and Livestock Development. Are Kenyans truly safe with the pesticides and insecticides currently being used on crops? A report before this House’s Select Committee on Implementation Committee recommends the removal of 365 chemicals on the Kenyan market but so far, only 70 have been removed. With rising cases of cancer and other serious diseases, what is the Ministry doing to ensure that all harmful chemicals that are recommended for removal from the Kenyan market are actually removed?

Thank you, Hon. Speaker. I want to pick up from where I left.

Last week, parts of Kakamega, including my constituency, and parts of Trans Nzoia reported cases of foot-and-mouth disease. The Cabinet Secretary is more promissory than practical. Under the Fourth Schedule of our Constitution, one of the functions of the Ministry of Agriculture and Livestock Development is to provide policy. I am disappointed that we are still talking about drafts. The Cabinet Secretary needs to get down to work, put pen to paper and send the paper to Parliament for us to approve. Uganda has eradicated tsetse flies. Why is Kenya still losing animals to tsetse flies 61 years after Independence?

Point made. Cabinet Secretary, respond in less than three minutes. The Cabinet Secretary for Agriculture and Livestock Development

: Hon. Speaker, I completely agree with the last speaker. More needs to be done in that area. We are quite practical. It is true that the Fourth Schedule is about policy. It also shares out agricultural responsibility between the two levels of government. The Fourth Schedule also provides that the national Government should be involved in sorting out national disease outbreaks. We do not have mass deaths of animals because of the work that we are doing. However, I agree that we should do more, and we will do more.

On the issue of pesticides as raised by Hon. Kathambi, one of the first policy directives I issued upon assuming office was that Kenya will not use any agricultural product that is not used in its country of origin. That was the first step. Secondly, based on those recommendations, we have already banned 77 products. We cannot ban all 365 products at once because some among them are not necessarily dangerous. No dangerous product will be used in Kenya’s agricultural sector.

As part of our role under the Chairmanship of the Common Market for East and Southern Africa (COMESA) and the East African Community (EAC) , we have proposed that a product banned in one country within our region should also be considered banned in all member countries. We can ban harmful products in Kenya, but if we still import tomatoes, onions and other produce from neighbouring countries which have not banned those harmful pesticides, our bans will be futile. Kenya has banned 77 pesticide products and limited the use of 230 others. The limited products may still be used under certain conditions and restrictions. We are not taking the matter lightly. It is a serious issue of the environment and health. We are taking action within and outside the country.

The Pest Control Products Board (PCPB) is aligned with those reforms. We have strengthened the Board’s laboratories’ testing capacity and benchmarking as far as pest control products are concerned. I am alive to the fact that the House, including the Deputy Speaker, has been insistent in advocating for the removal of many harmful agricultural products. It is not in anyone’s interest to continue using them, and they will not be used.

I thank you, Hon. Speaker.

Cabinet Secretary, we will end here with you. You can go back to your office.

Thank you very much, Hon. Speaker. It came out from the Hon. Cabinet Secretary that what was leased was the factory, not the land. We want the title deeds to either be kept by you or by the governor since lands are devolved.

Hon. Speaker: He did not say that.

No, he said that they did not lease the land but the title deeds are in the hands of the lessees. As you know, some of them are manoeuvring to make use of the title deeds.

He said, if I got him right, that they leased the land and the factory with conditions that whoever has taken the factory…

… cannot be used as collateral.

Yes.

Yes. I am pleading with him that, therefore, they should rush to get hold of the title deeds because we know the history of some of the lessees.

To that extent, you are right.

Yes. Thank you.

But it is not correct that they did not lease the land. They leased the land but there are restrictions on the use of the security.

Yes, thank you.

Order, Hon. Charity. This is not how the House runs. Hon. Cabinet Secretary, you are released.

Thank you very much.

As we go to Order No.9, I have a letter from Dr. Mutunga nominating Hon. Mathenge, who is in the House, to move the Motion.

Hon. Temporary Speaker, I beg to move the following Motion:

THAT, pursuant to the provisions of Article 113 (2) of the Constitution and Standing Order 150 (3) , this House adopts the Report of the Mediation Committee on the Coffee Bill, (Senate Bill No. 10 of 2023) , laid on the table of the House on Tuesday, 2nd December 2025, and approves the Mediated version of the Coffee Bill, (Senate Bill No. 10 of 2023) .

Traditionally, coffee has been one of the key crops that is grown in this country. It has been a key export earner. When the National Assembly considered the Senate Bill, about 50 clauses were amended. The Senate did not agree with the National Assembly Amendments, and we went to mediation. I want to thank the Mediation Committee that devoted an entire Monday, when traditionally the House does not sit, and sat up to 7.00 p.m. to ensure that we did justice to the Bill and arrived at a consensus.

About 8,000 small-holder farmers produce coffee in this country on an acreage of between 0.2 hectares and 3 hectares. These small-holder farmers account for up to 70 per cent of the coffee that is produced in this country. Small-scale and medium-size estates that are growing coffee on between 5 acres and 20 acres produce 20 per cent, and the large estates that grow coffee on more than 20 acres produce 10 per cent. However, the small-holder farmers have suffered so much due to failure to effectively regulate coffee production and marketing.

The Bill could not have come at a better time. The coffee sector has suffered with farmers being saddled with debts arising from financing programmes that have not benefited them. Subsequently, the Government has on several occasions had to step in and bail out the farmers. However, the cycle of debts has always recurred and as a result, coffee production in our country suffered, plummeting from a high of about 150,000 metric tonnes in the 1970s to less than 50,000 metric tonnes currently.

The Government came up with an ambitious plan that was aimed at increasing production in the period 2024-2029 to the pre-1970 production levels. However, the acreage under coffee production in the traditional coffee growing areas of Kiambu, Kirinyaga, Nyeri, Murang’a, Bungoma, Kisii and Kisumu has gone down.

The passage of the Bill brings back hope not only for our country, as coffee is a key exchange earner, but also to the livelihoods of the ordinary people in this country. The production of coffee is expanding to new growing areas in Kericho, Nandi and Mount Elgon. Therefore, there is a lot of hope that coffee will continue to give a viable alternative to rural households across the country.

In this Bill, we have sought to re-establish a national institution in the form of Coffee Board to oversee and become a competent authority on matters of coffee, take care of production and productivity, and embark on strategic and targeted marketing of Kenyan coffee, establish a Kenyan coffee brand in the global market, and ensure that farmers continue to enjoy better prices.

It is sad that today, despite the advances in technology, coffee buyers still have to be physically present in Nairobi to be able to bid for our coffee. It is envisaged that with the passage of this Bill, we will have a truly digital coffee exchange so that any lover of coffee across the globe, sitting in their homes and in their cities, in their own destinations, can bid for coffee that is on offer at a coffee exchange in Nairobi, allowing our farmers to have better access to markets globally.

Coffee production has also suffered due to lack of a dedicated research institution to take care of coffee development. The Bill is re-establishing the Coffee Research Institute, which will have a wider scope beyond the production of better varieties that are more climate resilient with better production – varieties which are resistant to diseases. They will also be responsible for disseminating research knowledge directly to farmers.

Small-scale coffee producers have also suffered in the hands of cartel-like tendencies, where we had entities previously holding multiple licences across the value chain and, therefore, they tended to hold the farmers captive. In the Bill, we are establishing three levels of licensing at the county governments on areas of production, primary processing and value addition. Marketing of coffee will be controlled by the Capital Markets Authority and export will be handled by the Agricultural and Food Authority. All the licensing bodies will have to

issue licences in consultation with each other to ensure that no single entity hold multiple licences across the different levels of the value chain.

Hon. Temporary Speaker, another area of opaqueness was the settlement of coffee proceeds, where money from sales would end up in the hands of one entity – the marketer – who would arbitrarily decide what to distribute. We are introducing a centralized settlement system that encourages transparency upstream and downstream, making all deductions visible to farmers and other players. Money will be distributed from the central system to the respective value chain players according to the contracted prices.

The co-operative movement is a key player in this country for pooling commodities and resources, and it is important not to disrupt its ability to leverage economies of scale. To address farmers’ concerns regarding the direct settlement system, we have defined that for purposes of settling coffee proceeds, the grower will be either a coffee co-operative or a coffee estate. The power and ability of farmers to pool their resources will not be disrupted.

Coffee farmers are also receiving support from the national Government in the form of subsidized inputs, currently fertilizers. With the passage of this Bill, we hope to expand the scope of the subsidy to include other inputs such as agrochemicals and soil testing capabilities to help farmers to increase both production and quality of coffee.

It is imperative that farmers understand that the law we are making will allow them to access the global market within the segment where Kenyan coffee is positioned today as specialty coffee. This Bill will also encourage further direct sales, enabling farmers to engage with buyers directly and enhance their earnings.

Lastly, this Bill will help resolve outstanding debts that are owed by coffee farmers, particularly in the co-operative sector, thus relieving them of a burden that has been a prolonged issue of debate in different arenas.

With those remarks, I move and request the Majority Deputy Whip, Hon. Owen Baya, to second.

It is the Deputy Leader of the Majority Party. You must start with the word ‘‘deputy.’’

Okay. I request the Deputy Leader of the Majority Party, Hon. Owen Baya, to second.

Give Hon. Owen the microphone.

Thank you, Hon. Temporary Speaker. I second the mediated version of the Coffee Bill, 2023, (Senate Bill No.10 of 2023) .

The principal objective of this Bill is to provide for the development and regulation of the coffee industry in Kenya. This Bill proposes to re-organize the coffee industry by transitioning the regulatory and commercial roles currently undertaken by the Agricultural Food Authority (AFA) to the Coffee Board of Kenya. This is a very important point of departure that we must consider. When AFA was set up, it took all the crops, bundled them together and put them under one organization. Coffee Board of Kenya, Tea Board of Kenya and many other organizations that existed then were folded and put together under AFA. We have realized that this created a big problem. It led to the decline of some crops, including coffee, sugar-cane, tea, cashew nuts and coconuts. The people decided to dissolve those organizations, which affected those who had invested their lives heavily in them. But Parliament passed the law, nonetheless.

Today we are unbundling coffee, removing it from AFA and setting up the Coffee Board of Kenya. I hope this is just the beginning. Other crops will also be unbundled and placed properly to allow them to grow. I have seen the Tea Bill and the Sugar Bill. We need to unbundle coconut, cashew nuts, other oil crops and pyrethrum. We repealed the Pyrethrum Bill here because of issues with its management. The essence of the mediation was to remove coffee from AFA and establish the Coffee Board of Kenya.

The Bill further seeks to transition coffee research. There used to be a song that played on the defunct Voice of Kenya (VoK) radio when I was a young man – which advertised the Coffee Board of Kenya. Previously, the Coffee Board of Kenya managed research through the Coffee Research Foundation, which was removed by AFA. This Bill seeks to reintroduce the Coffee Research and Training Institute and remove research functions from the Kenya Agricultural and Livestock Research Organisation (KALRO). This is a major benefit for farmers.

The second key point is that the Coffee Research and Training Institute will now be led by a person with a PhD, thus ensuring that the team is headed by a qualified researcher. This is important because it sets a professional standard for the research team.

This Bill originated from the Senate. It was transmitted here and as Members of the National Assembly, we passed it with amendments. The Senate rejected those amendments and, as provided by law and the Constitution, mediation was necessary. I wish to thank the Mediation Committee profusely for their dedication and sacrifice. Many clauses were amended and the team resolved the issues through careful deliberations.

The Mediation Committee considered all contentious clauses and agreed on a mediated version of the Bill, which we are now reviewing. Key among the issues was the licensing of various actors in the coffee sector. There was contention between the National Assembly and the Senate on who should issue the licences: The national Government, the Coffee Board or the county government. The Second Schedule to the Bill now outlines 19 licences. Permits and certificates that are to be issued by the Coffee Board, county governments and the Capital Markets Authority.

The distribution of licences was a major point of contention. The Committee resolved those issues soberly and objectively, reaching an agreement in the best interest of farmers and the sector. The Committee also managed to successfully deliberate on the functions of the Coffee Board and the Institute, and the qualifications of Board members and senior officers. For instance, as I mentioned earlier, the Coffee Research and Training Institute should be led by a PhD holder. This matter was contentious, but it was agreed upon.

The other matter that was also successfully resolved was the manner in which the three licensing authorities – Coffee Board, county governments and Capital Markets Authority – will share information and undertake consultations in performing their functions. This matter was contentious, but there is now a seamless process of consultation among the three licensing authorities. That makes it easy for us to make progress.

and coffee were among Kenya’s foreign exchange earners. We now only boast of remittances coming from people who work abroad and yet, we are still an agricultural country. It is agriculture that will get manufacturing and factories running in this country. This is the time we need to pitch tent in the agricultural sector and increase production of coffee, tea and sugar. That is the only way of ensuring that the dream of turning Kenya into a manufacturing country becomes a reality. While answering Questions in this House today, the Cabinet Secretary for Agriculture and Livestock Development said many things. The truth is that agriculture can help us move to value addition, manufacturing and create jobs in the country. Through agriculture, we can enjoy the productivity of the soil that God gave us.

I will stop at that to ensure that my friend, Hon. Bashir, has time to move his Bill. I request Members to support the mediated version of the Coffee Bill so that we set the coffee industry on the trajectory of growth.

With those remarks, I beg to second.

Hon. Nabii Nabwera.

Thank you, Hon. Temporary Speaker. I rise to support the mediated version of the Bill. I agree with the Seconder of the Bill that the biggest mistake that Parliament made was to pass the Agriculture and Food Authority (AFA) Act. It is an animal so moribund, dysfunctional, discriminating and disappointing to the farmer.

In the world today, other than oil, the second most traded commodity is coffee. The world has a shortfall of seven to three in the requirement of coffee. Between 1963 and 1987, Kenya was the largest producer of coffee in Africa. Because of this animal called AFA - the dysfunctional entity - even Uganda, which was number 10 then, is producing more coffee than Kenya.

The most disadvantaged farmer in this country has been the coffee farmer. He has lost money to brokers, AFA and Kenya Revenue Authority (KRA) . The reason I rise to support the Bill is because, firstly, it seeks to regulate the sector and reintroduce the dignity of the farmer. Secondly, it puts the profit of the farmer at the centre. Thirdly, it seeks to deal with the biggest animal in this country - the broker. You may not know this but in the past four years, a few people have been holding coffee farmers hostage in this country. They are the processer…

On a point of order, Hon. Temporary Speaker.

What is your point of order?

Hon. Temporary Speaker, cartels are the problem. Brokerage is a world-recognised profession. It is a distinguished and well-paying job. Could he have made a better choice of words?

He means regulated brokerage with rules that ensure fair play.

Proceed, Hon. Nabii.

Thank you, Hon. Temporary Speaker. Sometimes we differ on perspectives because of the different schools of English we went to. I bear with my colleague.

Hon. Nabwera, Hon. Saney is one of the most eloquent and refined Queen's English speakers in this House. He has read a lot of Shakespeare. In any case, he has a First Class Honours Degree in his own field of study.

Hon. Temporary Speaker, the Bible, in the Book of Elijah, it is very clear on knowledge. It presupposes that every day is a learning day. I was

saying that there are a few people in this country holding coffee farming hostage. I laud the Committee for realigning the issue of licensing, which includes brokerage.

My only advice is that where we have made a requirement that the Cabinet Secretary brings regulations to this House, there should be follow-up to ensure that they are brought as quickly as possible. We have seen people dilly-dally in bringing regulations to this House for scrutiny and approval. An example are the regulations that are required by the Sugar Act. The regulations that are supposed to operationalize the Act are being delayed.

Thank you, Hon. Temporary Speaker.

Hon. Saney Ibarahim.

Hon. Temporary Speaker, I am not a coffee farmer. I do not come from an area where coffee is grown, but we consume coffee. As Members of the National Assembly, we represent the entire country. I cannot remain indifferent to any matter that affects Kenyans wherever they are. With that believe, I feel it is wise, however shallow it might be, to add my voice to the debate on this very important Mediated Bill.

We are talking of a crop that affects nearly 800,000 households in the country – about 75 per cent of coffee farmers being held hostage by a cartel that takes advantage of the largest swath of the process, from processing to the sale of the product. I am reminded of a court ruling on this aspect, too. The Direct Settlement System was declared unconstitutional by a court of law. Paying directly to value chain actors was declared illegal because of its exploitative nature. To that extent, the mediated version of this Bill is in tandem and in-synch with that court ruling, which declared that manner of dealing with coffee farmers unconstitutional. What has been bedevilling coffee farming is the fact that a single entity could hold multiple licences in the coffee value chain.

So, you can have one person mimicking many faces in the value chain and exploiting the real farmer who grows the crop. There is lack of transparency in the flow of money to farmers. It is the cartels that are getting a huge chunk of the profit. The Bill asks for full disclosure of cash flows to, at least, track who really benefits. This mediated Bill anchors the initiative of the Government to increase coffee production from 50 metric tonnes to 150 metric tonnes by 2029. It is a step towards realization of the Government dream. That will increase our earnings from Ksh35 billion to about Ksh100 billion. It will be a milestone achievement if the Bill sails through as mediated. Comparatively, I have thought of northern Kenya. Well, a coffee farmer deserves all this supports and more. Where I come from, our crops are camels, goats, sheep and cattle. You know what that means when it comes to the supply chain. When shall we also come to that level given its huge contribution to this country’s GDP and its untapped potential? In dryland farming, when shall we have an Act of Parliament for sorghum, millet and sesame? They are very important crops that are friendly to ASAL areas. This Bill is welcome. I entirely agree with it. However, it also reminds us from Northern Kenya to, quickly, come up with Bills like this to support what is doing well in our areas. With those remarks, I support.

Hon. Bashir Abdullahi, did you wish to contribute on this debate? You had enlisted your name earlier. How about Hon. David Mboni?

Thank you, Hon. Temporary Speaker. Although I do not come from a coffee growing area, the issue of coffee is really disturbing. In 1975, this country experienced the highest growth in GDP of 8 -10 per cent that was driven by agriculture. One of the crops that brought that growth was coffee. That was the coffee boom time although the country wasted that time. That money was not well invested. Over time, coffee production and earnings, especially in foreign exchange, have gone down. Currently, we are talking about diaspora remittances from our children who are working out there. Some

of them are working in very bad conditions and yet, we have neglected agriculture. We have tea, horticulture and coffee, which used to be our number one foreign exchange earner. It is now number four. These are very serious concerns. One of the problems we have is brokers. They have frustrated coffee farmers so much. Farmers have moved from growing coffee to other profitable crops, especially in coffee growing areas. People in Kiambu County have sub-divided all their and sold the plots to real estate developers. That land used to be coffee farms. What we are seeing there is real estate. Most people have moved to real estate, which is more profitable than coffee, because of those kinds of frustrations.

It is best to note that our coffee is one of the best in the world. It is blended with other coffees from other countries to make it tastier. The proposal to hold the coffee auction online is a very innovative approach. In the past, people had to gather physically to see and buy coffee. That is no longer the best way to go, because the world has changed. I should be able to sell my coffee while seated at home, or buy coffee while seated somewhere. The idea of the online auction is, therefore, very innovative. This is one way of dealing with the brokers. This is because the auction will be held online, and you can see how much is being sold, at what price, and, therefore, what profit the farmers are expected to receive.

As we move to reforms, it is also very important to encourage investment in the value chain. Most of the time, we export our coffee in its raw form to other countries, then re-purchase it. Imagine selling a kilo of coffee for less than Ksh1,000 and then buying a processed quarter of a kilo, or less than a quarter for Ksh2,000. We have to move to the value chain. We need to process our coffee into the final product so that our farmers can earn maximum profit, and even this country can earn maximum profit from our sweat. Secondly, in doing that, we are also creating employment. The moment you export a product, you are exporting jobs to other countries. I am pleased with this Bill and I support it.

Thank you very much.

Is Hon. Abdul Haro in the House? No. There does not seem to be any more interest. I now call upon the Mover to reply.

Thank you, Hon. Temporary Speaker. Today, I am delighted to be in this House and to have participated in the mediation of this Bill. The coffee farmers have been waiting for the enactment of the Coffee Bill, (Senate Bill No. 10 of 2023) . It gives them back their power to participate effectively in decision-making across the value chain. More importantly, it gives them a say in the sale, marketing and pricing of their coffee.

I thank the House for placing that onus on us and for accepting our support for the mediated version of the Bill. This is a great day for the coffee farmers in Kenya and for the coffee trade in this country.

Thank you, I reply.

Fair enough. Hon. Members, I now put the Question.

Next Order.

Is the Chairperson of the Departmental Committee on Finance and National Planning in the House?

Are you moving this Motion on behalf of the Committee Chairman?

Yes, Hon. Temporary Speaker.

Proceed.

Thank you, Hon. Temporary Speaker. I am a ranking Member of the Committee.

Hon. Temporary Speaker, I beg to move the following Motion: THAT, this House adopts the Report of the Departmental Committee on Finance and National Planning on its consideration of the Agreement between the Government of the Republic of Singapore and the Government of the Republic of Kenya for the elimination of double taxation with respect to taxes on income and the prevention of tax evasion and avoidance, laid on the Table of the House on Tuesday, 2nd December 2025, and pursuant to the provisions of Section 8 (4) of the Treaty Making and Ratification Act, Cap 4D, approves the Ratification of the Agreement between the Government of the Republic of Singapore and the Government of the Republic of Kenya for the elimination of double taxation with respect to taxes on income and the prevention of tax evasion and avoidance. Hon. Temporary Speaker, the National Treasury and Economic Planning, on behalf of the Government of Kenya, concluded the negotiation on the Agreement in June 2023. The Agreement was signed on the side-lines of the 79th Session of the United Nations General Assembly in New York by the Prime Cabinet Secretary and the Cabinet Secretary for Foreign and Diaspora Affairs on 23rd of December 2024, paving the way for ratification.

Subsequently, the Cabinet approved the ratification of the agreement in the First Special Cabinet Meeting of 2025, held on 11th February 2025. The agreement was published in the Kenya Gazette on 2nd May 2025, as Gazette Notice No. 5583 of 2025.

Hon. Temporary Speaker, the Agreement seeks to uphold relief from double taxation in relation to income tax and any rates of similar character imposed by the laws of Kenya. The agreement further seeks to develop the economic relationship between Kenya and Singapore, enhance their co-operation in tax matters, and seal loopholes for non-taxation or reduced taxation through tax evasion or avoidance, including through treaty shopping arrangements aimed at obtaining reliefs provided in this agreement for the indirect benefit of residents of third jurisdictions.

The Agreement contains 30 articles. It seeks to eliminate instances in which income earned between two countries may be subject to double taxation and to provide certainty to investors and businesses operating in both jurisdictions. This would enhance cross-border trade and investment and deepen economic co-operation.

Singapore is a prominent global financial and commercial hub. The Agreement is anticipated to boost investor confidence and attract foreign direct investment into the country, particularly in financial services, infrastructure, logistics and emerging digital sectors, while creating opportunities for Kenyan enterprises through a global value chain.

Hon. Temporary Speaker, this agreement is important because in 2024, Kenya and Singapore traded goods totalling approximately US$149 million: Kenya's imports from Singapore and Kenya's exports to Singapore. Kenya's exports to Singapore were valued at US$5.97 million, which reflects a modest share of Kenya's overall exports. Kenya's exports to

Singapore included coffee, tea, and spices at US$1.47 million; ores, slag and ash at US$0.99 million; edible nuts and fruits at US$1.7 million; and plants and flowers at US$0.68 million.

Kenya's imports from Singapore in 2024 amounted to US$41.24 million and were mainly composed of plastics US$6.4 million, man-made stable fibres US$5.13 million, machinery and boilers US$5.08 million, and chemicals US$3.97 million.

On the other hand, Singapore's exports to Kenya in 2024 were valued at US$108.2 million, composed mainly of machinery and nuclear reactors US$3.34 million, plastics US$14 million, man-made fabrics and other industrial goods US$60 million.

Trade between Kenya and Singapore has grown substantially since 2017, when bilateral goods trade was much smaller, at around US$85 million. By 2022, it was roughly at US$212 million. Kenya is ranked among Singapore's top trading partners in Sub-Saharan Africa, at number nine. Beyond goods and services, trade also forms part of the relationship. In 2022, Singapore exported US$272.5 million in services to Kenya and imported US$46 million from Kenya.

A bilateral investment trade treaty and air services agreement exist to promote further economic ties and investments. The Agreement contains 30 Articles, consistent with international standards on tax treaties. It clarifies the taxation of income, including businesses' profits, dividends, interest, royalties, capital gains, and employment income, while ensuring that each country's taxing rights are well protected.

The Agreement also incorporates important provisions related to the exchange of tax information, co-operation between tax authorities, and measures to prevent treaty abuse, such as tax evasion and avoidance. These provisions support Kenya's domestic revenue mobilisation efforts and enhance the fairness of the tax system.

The Committee extends the Agreement in line with the Constitution, the Treaty-Making Ratification Act, and the national policy priorities, and is satisfied that it is in the public interest and supportive of Kenya's economic transformation agenda.

The Committee, in accordance with Article 118 of the Constitution, facilitated public participation through newspaper advertisements. While no memoranda were received, the Committee fully complied with all legal obligations regarding stakeholders engagement.

Hon. Temporary Speaker, the agreement does not in any way limit Kenya’s superiority over taxation matters. Instead, it enhances productivity, transparency and administrative co- operation in applying tax rules between the two countries.

Considering the benefits outlined and having met all legal requirements, the Committee recommends that the House approve the ratification of this agreement in accordance with Section 8 of the Treaty Making and Ratification Act, Cap 4D.

Accordingly, I urge the House to adopt the Report of the Departmental Committee on Finance and National Planning and to approve the ratification of the Agreement between the Government of the Republic of Singapore and the Government of the Republic of Kenya to eliminate double taxation on income, prevent tax evasion, and address other matters.

With those few remarks, I request the Deputy Leader of the Majority Party, Hon. Baya, to second.

Thank you. That is a former mandarin of the National Treasury. He is my friend, and I enjoy working with him. That is why I take this opportunity to second not just him, but also the Motion he has just tabled.

The 2010 Constitution did a very fundamental shift. All bilateral agreements that are signed must come to this House of Representatives for review and consent. That is one of the fundamental principles we inherited from the 2010 Constitution. That is why we have this bilateral relationship between Kenya and Singapore on tax matters coming to the Floor of the House.

The Hon. Member's presentation focuses on eliminating double taxation on income and preventing tax evasion. The title of this bilateral Agreement conveys its importance. One, we will eliminate double taxation on income to avoid tax evasion. Those are keywords. These kinds of agreements allow us to get more money for the country. When we eliminate double taxation, we have the opportunity to generate more revenue by reducing tax evasion. The bilateral agreement between Kenya and Singapore is very important.

The trade balance between Kenya and Singapore is unfavourable to us. Our exports are around US$5 billion, while theirs are US$14 billion. As we work hard, we Kenyans hope and pray to reach Singapore. I love the dream the President has. Significantly, we can transform this country into a first-world country within our time. It is by ensuring we have more income from exports and investments coming into the country. That way, the dream of being a first- world is a reality. I believe we can be a Singapore in Africa and boast about it.

Nonetheless, we must do certain fundamental things. One is to enter into the bilateral agreements we are looking at here today and ensure that the balance of trade eventually favours Kenya. Kenya's exports to Singapore are at US$5.97 million. Kenya’s imports from Singapore are US$41.25 million. The remainder reflects Singapore's exports to Kenya. Now, that disadvantages us. What do we send to Singapore? We send coffee, tea, spices, iron ore, slag, ash, edible preparations, and fruits, plants and flowers. Those are the things that we take to Singapore.

It is in those businesses that we find tax evasion. People want to cut here and there to evade taxes because they think there is double taxation. When someone feels that there is double taxation or is being overtaxed, the first thing he wants to do is to evade the tax. But once we enter into this bilateral agreement, we will eliminate double taxation and have only one form of taxation. That way, people will stop evading taxes, resulting in more revenue being collected. That is why this bilateral agreement is very important. That is why I second and support the Agreement. I also ask Members in this House to support it so that we can make progress and get more money to develop the country.

I second. Thank you, Hon. Temporary Speaker.

Hon. Catherine Omanyo.

Hon. Temporary Speaker, this is a Report by our Chair. Hon. Kivasu will read, then I second.

We are dealing with Order No. 10. Fair enough. As there is no further interest in this business, I will call upon the Mover to reply.

Thank you, Hon. Temporary Speaker. I take the opportunity to thank the Members, especially the Deputy Leader of the Majority Party. He has struggled to say something on this Treaty. I am aware that he is not an economist. He has a degree in education. So, he has tried to talk about this Treaty.

Double taxation is a significant deterrent to investment. For example, suppose a company from Singapore starts a business in Kenya, and we tax the company when it repatriates profits to its home country. In that case, those profits are also taxed, and vice versa. So, this Treaty is supposed to encourage foreign direct investment in both countries. Kenya is fighting very hard to get foreign direct investment.

The other day, it was reported that we have improved. But suppose you compare Kenya to other East African countries, for example. In that case, when Uganda receives US$3.5 billion annually in foreign direct investment, Kenya receives less than US$1 billion, while Tanzania receives around US$2 billion. We need to put in place measures to attract direct investment, thereby increasing jobs and reducing unemployment in this country.

Hon. Temporary Speaker, with those few remarks, I beg to reply.

The Departmental Committee on Finance and National Planning.

Hon. Temporary Speaker, I beg to move the following Motion:

THAT, this House adopts the Report of the Departmental Committee on Finance and National Planning on its consideration of the Agreement for Establishing the Shelter Afrique Development Bank, laid on the Table of the House on Tuesday, 2nd December 2025, and pursuant to the provisions of Section 8 (4) of the Treaty Making and Ratification Act (Cap. 4D) , approves the ratification of the Agreement establishing the Shelter Afrique Development Bank. Shelter Afrique Development Bank has a headquarters in Nairobi. It is a key institution supporting housing development across Africa since its establishment in 1981. Kenya is not only a founding member but also the largest shareholder, holding 16.23 per cent of the paid-up capital. The transformation of Shelter Afrique into a fully-fledged development bank is intended to re-position the entity to mobilise resources more effectively globally and to support governments in delivering affordable housing and urban development. The Cabinet approved Kenya’s ratification of the Shelter Afrique Agreement during its meeting held on 11th February

Hon. Temporary Speaker, I second this Motion on the consideration of the Agreement for Establishing the Shelter Afrique Development Bank, ably moved by the Hon. Member.

As we have heard from the Mover of the Motion, this is one way of establishing a bank that will help us finance housing in this country. This is one of the key components of the Bottom-Up Economic Transformation Agenda (BETA) plan. Shelter Afrique was established sometime in 1981, as has been elucidated. Kenya is actually a founding member. Interestingly, Kenya owns 16.23 per cent of the shares of Shelter Afrique Development Bank. This is a multilateral organisation, and many other countries are members, including the African Development Bank. Kenya has put a lot of money into Shelter Afrique Development Bank.

We, therefore, need to ratify this so that Shelter Afrique Bank becomes a development bank capable of financing many of our programmes. Notably, Shelter Afrique Development Bank has already funded over 135 projects in this country, yet it is not a bank. But if we ratify this, we shall establish it as a bank, a bank from which we can borrow money. The European Union and many other investors can invest in this bank, enabling it to access resources and financing for housing.

One of the key components of the BETA through which we have seen transformation in various regions, including my constituency. I have an affordable housing programme coming up at Tezo, Watamu, Bofa in Kilifi County, and two other programmes are also coming up. Employment has been created for many people. Apart from that, materials have been bought from hardware stores, construction is underway, and jobs have been created. Investing in

Shelter Afrique and establishing the Shelter Afrique Development Bank (SADB) is intended to ensure the perpetuity and continuity of the projects we already have.

Therefore, I sincerely request that this House support the establishment of Shelter Afrique as a development bank, like many other development banks worldwide. The beauty of this is that it is a bank that Kenya will control, as it is the majority shareholder. It is also a Kenyan-born bank that will be headquartered here. Some of the benefits include increased access to long-term development financing. That is one of the benefits that we have. Secondly, it will support public and private sector housing developers. This bank will not only help the public or the Government, but also private developers. Today, if Hon. Temporary Speaker wants to become a developer and has a plot in Muthaiga or Kilifi, he can go to SADB and get some money.

I thought you would say Eastleigh.

Eastleigh is too full. However, I want to welcome you to Kilifi County. Vipingo is an area where you should invest heavily in development. You can get money from SADB.

The third benefit is a centred partnership in delivering affordable housing and essential infrastructure. This bank will do that. However, what is in it for Kenya as a nation, State and Democracy when we establish this bank? First, it affirms Kenya’s diplomatic commitment to continental development. We are the centre of it. The UNEP and UN-Habitat in Gigiri and all the other international offices being situated here and now, having this bank, we stand tall in terms of diplomacy.

Secondly, we secure financing opportunities to accelerate the delivery of affordable housing. We also strengthen Nairobi’s position as a centre and regional hub for development financing and Multi-National Corporations (MNCs) . These are important considerations that will be achieved just by ensuring that we have established this SADB. Lastly, we gain expanded technical support through the centre of excellence, including knowledge sharing, research and capacity building. Apart from that, this bank will be out there giving out money. It will be a major employer, international expertise will come to these countries, and Kenya will continue to develop as a regional hub for development and diplomacy, attracting additional investment.

Establishing a SADB positions Kenya in development. Apart from housing and all other programmes. We will become the regional giant in multilateral diplomacy.

With those remarks, I second.

On a point of order, Hon. Temporary Speaker.

Hon. Saney, do you want to raise a point of order?

Yes, Hon. Temporary Speaker.

What is out of order?

Hon. Temporary Speaker, I rise under Standing Order 35. Looking at the quorum in the House, and given that we have serious critical matters lined up for debate and, more so, the Motion on the British Army Training Unit in Kenya, which is a very serious and damning Report.

Fair enough.

I would request that this debate be deferred to tomorrow’s sitting so that…

Order, Hon. Member. You have raised a Quorum issue, and, understandably, the Chair is also convinced that we do not have Quorum. I direct that the Quorum Bell be rung for 10 minutes.

Where are the Whips of the Majority and Minority Parties? Deputy Leader of the Majority Party, take the lead and bring Members into the House. Order, Hon Members. The Quorum Bell is now ringing. Please ensure Members come into the Chamber.

Hon. Members, as a matter of fact, for all the other businesses except the one concerning the military, the Chairpersons are not around. I think there has to be strong communication for them to be available here to perform their jobs and maintain a working House.

Hon. Members, the time being 7.01