PRESS RELEASE ON CABINET MEETING – 10TH JULY, 2014 Cabinet today met and Approved the following:

1. Fighting corruption:- Resolved to ruthlessly continue tackling corruption and unethical practices in all MDA and remove all individuals, cartels and enablers of corruption. Withoutfear or favour. All officers involved in corruption must be dismissed and charged in Court on.

2. Construction of Road within the boundary of the Nairobi National Park commonly referred to as the Southern Bypass. The road will consume about 38HA of the Park. However, the Park will be compensated on Hectare for Hectare. This road will ease congestion in the CityCentre by re-routing city heavy commercials and other vehicles proceeding to Rift Valley and East African Countries.

3. Public Finance Management (Amendments) Bill, 2014 for both National and County Governments.

4. Draft Regulations to Implement Devolution Laws.5. Amendment to National Youth General Act (2009) that rationalizes membership from 24-9

members in line with financial prudence and austerity measures. 6. Sessional Paper on Devolved Government which provides broad policy strategic framework

for Devolution in the Country. 7. Cabinet also limited foreign travels to only the most critical ones. Ambassadors and County

Commissioners to henceforth represent Cabinet Secretaries as appropriate.8. Directed Government Departments down to the Counties to buy Kenyan products and

services and should only resort to buying foreign goods and services if they are not availableor cannot be produced in Kenya. Ministries were encouraged to challenge local firms/entrepreneurs opportunity to improve competitiveness and standard of their products instead of dismissing them at the first instant. As example, most goods in State House are made by Prison Industry.

9. Approved establishment of legal framework for Warehousing Receipt System Bill in Kenya.10. This radical Bill seeks to entrench and legalize structural agricultural commodity trading

system in the cereals and grain sub-sectors. The Bill will also create certainty, predictability, and security in the agricultural market.

◦ Reduce post-harvest losses estimated at 10% of total produce; optimize utilization of Kenyans storage capacity in government and private sector; improve access, and enhance liquidation (cashing) or stock of the farmers’ securitized receipts for stocks in the warehouse farmers. This liquidation will be more robust after development of commodity exchange platform.

◦ Approved performance Contracting Evaluation Results 2012/13 and directed that Managements that had consistently and persistently recorded gross poor performancebe purged and replaced with more competent and productive performers. Cabinet noted that 40% of parastatals had continued to notoriously perform dismally. In the corollary, best performers would be rewarded and motivated.

11. Approved operationalization of One-Stop-Border-Posts with the Republic of Tanzania and others to enhance border trade and security.

12. Directed Cabinet Secretary will work closely with counties in ongoing/continued Payroll Audits in all MDAs to cleanse payrolls and rid of ghost workers and report to Cabinet withinone month. They will also be expected to quantify optimal staffing levels highlighting Deficits and/or staff surpluses across cadres and departments. Double salary irregular beneficiaries and other unethical cases will with immediate effect be dismissed and charged in court forthwith.

13. Approved implementation of Public Service vehicle regulations and Digital speed limiters – that seek to achieve long term solutions and regulations road to road safety following heavy

loss of lives and maiming of Kenyans in the past.◦ Cabinet directed that sustainable solutions be also urgently developed to streamline

to streamline/contain the Boad-Boda Industry to enhance roady and opinion passagersafety security insurance and training, among others.

◦ This consolidates enforcement of measures such as: PSV regulations; digital speed limiters and capacity building which to-date have already reduced loss of lives by 30%.

14. Approved strategies for strengthening of capacity and enforcement of Standards for Technical and Vocational Education and training institutions.

15. Directed more Capacity Building to strengthening Public- Private-Partnership Programs. The process has been eased and standardized to ensure effectiveness, fairness, equity and parity of treatment. Cabinet urged Kenyan entrepreneurs to take advantage and participate in the listed over 47 Counties National Priority list.

16. Approved development of Ultra-Modern Health Facility and expansion of Moi Referral hospital on 200 acres former Prison Land in Uasin Gishu County.

17. Approved construction of more digital integrated infrastructure to enhance security of the JKIA and directed immediate solutions to curb increasing slums along Moi International Airport, Mombasa.

18. Approved closure of Kenya Embassy in Libya and enabling new Missions in Algeria and Morocco.

19. Approved support to Regional Centre on Small Arms in the Great Lakes Region, the Horn ofAfrica and Bordering States (RECSA).

20. Noted that the Country had adequate food stocks with 619,000 maize surplus to-date there isno cause for alarm also with 33 million expected harvest this year. Cabinet called upon Kenyans to diversify eating habits and preferences especially Starch-Ugali is not the only source. Traditional foods, such as sorghum, millet, cassava, bananas, potatoes to get more attention and budgetary allocation. Post-harvest losses totaling about 1.3 million bags be urgently addressed.

21. Cabinet also approved◦ Ratification of EAC Protocols on Sanitary and Phytosanitary (SPS) measures◦ Alternative financing mechanism for EAC◦ Model-structure Roadmap Action Plan in EAC Political Federation.◦ Outstanding EAC decisions on: Defence; Peace and Security; Monetary Union; ICT;

Double Taxation avoidance; EAC Centre for Aviation Medicine in Nairobi.22. Establishment of Regional office for Capacity Building within framework of the Customs

Cooperation Council (World Customs Organization) in Kenya.23. Special status Agreement with Governments of Ethiopia and Nigeria.24. Avoidance of Double Taxation with Republic of Seychelles.25. Agreement with Government of the State of Kuwait for promotion and protection of

investment; and avoidance of Double Taxation. 26. Establishment of Head Office in Kenya by the Partnership for Economic Partnership (PEP).27. Establishment of EAC Regional Centre for Aviation Medicine.28. Establishment of Huduma Kenya Secretariat as a Semi-Autonomous Government Agency

(6500 Kenyans served daily in Huduma Centres). SECRETARY TO THE CABINET 10TH JULY, 2014