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Wednesday, May 26, 2010

KEPSA SAYS YES

The private sector has urged Kenyans to support the proposed Constitution saying it is progressive and good for economic growth.

The 67-member organisations of the Kenya Private Sector Alliance (Kepsa) and its 180 corporate members said the document provides a framework for private sector to do business.

“Though there are still some unresolved issues in the proposed Constitution this should not be used to hold Kenya to ransom. There are clear rules for future review and these should be accepted and followed at appropriate time,” Kepsa vice-chairperson Lucy Karume said.

In a statement read on behalf of the organisations at Kepsa offices in Nairobi, Ms Karume said the proposed law clearly defines the country’s chief executive with appropriate checks and balances.

It further has a stronger institutional structure for the Judiciary, with a mechanism for the vetting process and provision for the inclusion of the private sector.

Easier to manage

The two-tier devolved structure is also cheap and easier to manage than the earlier proposed three tier, Kepsa said.

“Fifteen percent of the national budget will be disbursed to the devolved units, to ensure equitable and optimum use of resources.”

The proposed Constitution was also hailed for improving processes with regard to public finance, with Parliament having an enhanced role in the allocation of funds.

“Other changes include a unified and centralised tax system, and more openness for instance in split between the responsibilities of the Controller and the Auditor General; the Salaries Commission to govern increases for public officers and access to information held by the State,” Kepsa said.

The proposed Constitution further protects physical and intellectual property rights, clarification provided on ability of local councils to levy local charges and right of employees to strike identified although no corresponding rights have been identified for employers.

Kepsa, however, regretted that significant contradictions between the constitution and prevailing Acts in the mining industry have not been addressed.

“As the apex body of the private sector, we will encourage our members to continue the dialogue through the processes that will follow as the provisions of the Constitution are cascaded through the respective changes to Acts; bills and policies, whilst being harmonised with EAC regulations,” Kepsa said.

Enabling environment

The organisation said it “fully” supports the adoption of the proposed Constitution adding that it requires an enabling business environment that provides private sector with stability and sustainability; freedom of commerce; and sanctity of property.

Mr Ibrahim Mwathane, the former chairman of Institute of Surveyors of Kenya said the land chapter as contained in proposed Constitution is the same as in previous documents including the Bomas and Wako drafts and has never been contentious.

He said the section will include security on land rights and curb land grabbing.

“It is a positive innovation for the people. Some of the political class against the land chapter are beneficiaries of land grabbing and are not opposing the proposed Constitution for sake of Kenyans,” Mr Mwathane said.

He said issuing minimum and maximum acreage of land to be owned by individuals is good for planning and ensuring country had enough food.

He denied reports that small pieces of land and huge ones will be taken away if the new law is passed.

“Taxing idle land will help off load so that many Kenyans could be able to have them for food production,” he said.

Among those at the press conference were Mr Vimal Shah of the Kenya Association of Manufacturers, Mr Kelly Kiilu who represents Kepsa at EAC and Mr Walter Oguk (health sector).

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