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Nairobi, March 30, 2004

President Mwai Kibaki addresses Parliament during the opening of the of the 9th Parliament session.

President Mwai Kibaki today officially opened the second session of the ninth parliament with a call to the parliamentarians to act together in addressing development challenges facing the nation.

Saying as leaders, the legislators were best placed to offer tangible solutions to problems, President Kibaki urged them to replace political activism with reconstruction and development activism for the good of the country.

"As the supreme organ of the State, Kenyans are looking upon parliament to provide solutions to the challenges facing this country. Indeed the business laid out for the House this session will go a long way in facilitating the process of economic recovery," he said.

On its part, the President said, the Government will continue implementing policies and instituting measures geared towards speeding up the country's economic recovery and improvement of Kenyans' lives.

Said President Kibaki: "My Government's vision is the realization of high economic growth rates of six to seven per cent that Kenya once enjoyed. We did it in the past, we can do it again."

On the constitution, the President reaffirmed the Government's commitment to the completion of the review process.

"It is the wish of the Government and the people of Kenya that this process be completed in the shortest time possible. I want to assure Honorable members that the Government will introduce legislation necessary to implement consensus reached by this Session of Parliament," he said.

The President stressed that he would be proud to be a member of the House that will be remembered by posterity as having made it possible for Kenyans to have a constitution that will be a pillar of national unity, peace, liberty and prosperity.

He stressed that the Government is committed to the enlargement of the democratic space but told leaders that they had a responsibility of choosing words which build rather than destroy.

"Let us avoid portraying our country as a quarrelling nation because of personalization of issues and short-sightedness," he advised.

In his speech, which touched on a wide range of issues affecting the country, the Head of State noted that the Government had already instituted a number of reform measures that have started bearing fruits.

He said as a result of the reforms, growth in the manufacturing sector rose by 1.2 per cent while agricultural growth improved by 2.0 per cent, adding that real GDP growth rate rose by 1.8 per cent up from 1.1 of the year 2002.

The President further disclosed that the Agricultural Finance Corporation has been revitalized with a funding of upto one billion shillings which is available to farmers and the Kenya Co-operative Creameries is among other agricultural institutions that have been revived.

He said the Government has waived debts owed by sugar factories to enable sugar companies to pay farmers, leading to a positive impact on poverty reduction in the country.

Noting that micro and small-scale enterprises were not expanding due to lack of credit, President Kibaki said the Government will table in parliament relevant micro-finance legislation to improve credit accessibility by small businesses.

The President cited youth and women groups as a section of society needing urgent credit to embark on business activities.

"In addition, the Government will streamline the co-operative movement to further improve credit accessibility," he said adding, "The Government will be tabling the Co-operative Societies Amendment Bill 2003. The Bill aims at strengthening the co-operative movement for the benefit of its members and the economy."

Saying the Government had received 4.5 billion shillings from the World Bank and 2.2 billion shillings from the African Development Bank for financing projects in the 22 Arid and semi arid districts, President Kibaki called on parliamentarians to facilitate the utilization of the funds for the intended objectives.

He informed parliament that the Government had received financial support commitments from development partners amount to over 300 billion shillings over a period of three years, saying this will boost the Government's efforts to revive the economy and increase job opportunities for Kenyans.

The President, however, expressed the need for streamlining the management of financial resources if efforts to rebuild the economy are to succeed.

"I urge honourable members to deliberate on the Financial Management and Public Procurement and Disposal of Asset Bill, which the Government will be tabling before the House. The Bill is intended to provide a legal framework for ensuring the efficient and accountable management of public resources," he appealed.

To further improve the management of public resources, the Head of State said, the Government will continue with the war against corruption.

Noting that the administration of justice is an area of concern to Kenyans, he said the Government is committed to ensuring timely dispensation of justice will develop legislation on the establishment of small claims courts at the village level.

On education, the President said over 8 million pupils have benefited from the free primary education program being implemented by the Government, while there is order in the public transport sector.

On security, he said the Government has increased salaries for the police force which is now better equipped and being retrained to deal effectively with crime in the country.

With regards to HIV/AIDS, the President said the Government has intensified the campaign against the scourge and called on the parliamentarians to lead the fight at the constituency level.

Other issues he addressed were expansion of the rural electrification, promotion of environmental conservation and the consolidation and modernization of the existing land laws.