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	<title>Capital Blog</title>
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	<link>http://www.capitalfm.co.ke/eblog</link>
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		<title>I started #AskKirubi to mentor the youth</title>
		<link>http://www.capitalfm.co.ke/eblog/2013/06/19/i-started-askkirubi-to-mentor-the-youth/</link>
		<comments>http://www.capitalfm.co.ke/eblog/2013/06/19/i-started-askkirubi-to-mentor-the-youth/#comments</comments>
		<pubDate>Wed, 19 Jun 2013 16:37:29 +0000</pubDate>
		<dc:creator>CHRIS KIRUBI</dc:creator>
				<category><![CDATA[Chris Kirubi]]></category>

		<guid isPermaLink="false">http://www.capitalfm.co.ke/eblog/?p=3671</guid>
		<description><![CDATA[<img width="205" height="183" src="http://www.capitalfm.co.ke/eblog/files/2013/06/CHRIS-KIRUBI.jpg" class="attachment- wp-post-image" alt="CHRIS-KIRUBI" style="float:left; margin:0 15px 15px 0;" />By Chris Kirubi]]></description>
				<content:encoded><![CDATA[<img width="205" height="183" src="http://www.capitalfm.co.ke/eblog/files/2013/06/CHRIS-KIRUBI.jpg" class="attachment- wp-post-image" alt="CHRIS-KIRUBI" style="float:left; margin:0 15px 15px 0;" /><p><strong>BY CHRIS KIRUBI</strong></p>
<p>The size of your success is measured by the strength of your desire; the size of your dream; and how you handle disappointment along the way ~ Robert Kiyosaki</p>
<p>It all began with a quest to mentor the young generation… You see friends, according to the Kenya National Bureau of Statistics, the unemployment rate in Kenya increased to 40 percent in 2011 from 12.70 percent in 2006.</p>
<p>Two years later, are we any better? We live in a society where the rate of unemployment grows faster than that of the economy but what are we doing to help fight this? What can you possibly do to inspire someone to become as successful as you are or even better?</p>
<p>Africa is in urgent need of real mentoring from experienced &#8220;fathers&#8221; and &#8220;statesmen&#8221; and it’s time we rose up to that role. Many opportunities are presenting themselves across Africa and if we don’t guide the young people then they will waste those opportunities.</p>
<p>As an ‘experienced’ statesman, I took it upon myself to come out and personally mentor the younger generation. I employ many of them but I felt that it was not enough. I sat down and came up with a way where they could ask questions online regarding business and entrepreneurship and get relevant information they needed.</p>
<p>Every Thursday for a period of three hours, I am able to interact with the young people using the hashtag #AskKirubi on Twitter.</p>
<p>I honestly did not know what I was getting myself into but I was determined. In the last two weeks I have gotten over 200 questions and this has just proved how much the young people are yearning for information and advice to move in the right direction.</p>
<p>It is my hope that the government will move in to assist in covering some of these subjects because young people don’t seem well armed on how to become independent and fend for themselves. There is definitely a gap in our education system. Theory will not only help you gain success but you need that practical element and I hope with time we will begin seeing this.</p>
<p>How can we take the Swiss experience on how they manage students who have completed school? How can they be polished and prepared for the next phase of life? Isn’t it time colleges and universities prepared students to face the real life if we have to grow and develop as a country? We need to take these challenges on, prepare the youth to be independent in their various fields of understanding as entrepreneurs.</p>
<p>There are many areas that well educated Kenyans can undertake which would see the end of unemployment. I am only trying what I can in intervening as there is a very serious gap between theory and practical.</p>
<p>On the other hand, we need all financial institutions to be mandated to apportion part of their financial transactions as venture capital for great initiatives by young Kenyans. We have many young passionate people looking to be employers themselves but lack the capital; and it’s only fair if we created that opportunity for them with the resources we have.</p>
<p>The desire by many young men and women looking to become entrepreneurs has energized me to look for these partnerships with caring banks to finance great ideas. I am still on that quest and will not tire till I find a solution. I appeal to those who have great ideas and lack the finance or will power, to communicate with me on this platform and I will see how best to assist.</p>
<p>For now, I will continue mentoring those I can using my <a href="https://www.facebook.com/chriskirubi2?ref=ts&amp;fref=ts">Facebook</a> and <a href="https://twitter.com/CKirubi">Twitter</a> pages. It’s my desire to see the young people of this country flourish.</p>
<p>See you on Twitter.</p>
<p>Your friend, DR. DJ CK.</p>
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		<title>What influences the transition to knowledge-based economy?</title>
		<link>http://www.capitalfm.co.ke/eblog/2013/06/19/what-influences-the-transition-to-knowledge-based-economy/</link>
		<comments>http://www.capitalfm.co.ke/eblog/2013/06/19/what-influences-the-transition-to-knowledge-based-economy/#comments</comments>
		<pubDate>Wed, 19 Jun 2013 14:15:57 +0000</pubDate>
		<dc:creator>Opinion Leaders</dc:creator>
				<category><![CDATA[Opinion Leaders]]></category>

		<guid isPermaLink="false">http://www.capitalfm.co.ke/eblog/?p=3668</guid>
		<description><![CDATA[<img width="205" height="183" src="http://www.capitalfm.co.ke/eblog/files/2013/06/DR-MOHAMMED-OMAR-V2030.jpg" class="attachment- wp-post-image" alt="DR-MOHAMMED-OMAR-V2030" style="float:left; margin:0 15px 15px 0;" />By Dr Mohamed Omar]]></description>
				<content:encoded><![CDATA[<img width="205" height="183" src="http://www.capitalfm.co.ke/eblog/files/2013/06/DR-MOHAMMED-OMAR-V2030.jpg" class="attachment- wp-post-image" alt="DR-MOHAMMED-OMAR-V2030" style="float:left; margin:0 15px 15px 0;" /><p><strong>BY DR MOHAMED OMAR</strong></p>
<p>When the Kenya Vision 2030 was launched five years ago, it articulated the country’s strategic intent by painting a future scenario characterised by prosperity and sustained growth. The kind of socio-economic growth envisaged was premised on a number of crucial suppositions, prominent among which was the gradual transition into a knowledge-based economy.</p>
<p>Broadly, a knowledge-based economy is one which is exemplified by the rampant creation, diffusion and use of knowledge. The extent to which this is realised is generally based on the application of research, science, and technology, but also on the policies, institutions, and systems that have implications for the country’s productivity and competitiveness as they affect the overall business climate.</p>
<p>What are the factors that affect a country’s gradual transformation towards a knowledge-based economy and how precisely do they influence that transition?</p>
<p>First, technology and innovation are the bedrock of modern and knowledge-intensive economic activities. Initiating policies that establish a national innovation system; which implies the flow of information and knowledge among government institutions, universities and private enterprises,is one avenue to enhance a culture of continuous innovation. Components of such a system include industry clusters or conglomerations of related industries that are co-located in specific geographical settings and that share knowledge, skills, utilities, and other services; incubation of small and start-up businesses; innovation centres; and manufacturing that relies on high-level technology.</p>
<p>This creates an ecosystem that helps create a critical mass of companies and individual entrepreneurs that will help spur economic growth. These people and enterprises will engage in distinct yet mutually reinforcing activities and processes. Vision 2030 projects that serve as prime examples of such initiatives are the recently launched Konza Technology City and the Special Economic Zones.</p>
<p>Second, the centrality of Research and Development (R&amp;D) cannot be overstated. The R&amp;D budget of most middle-income economies is 1pc and above of the GDP while Kenya’s is about 0.5pc of the GDP. With research, the goal is twofold: to have a robust and effective management of patents and intellectual property rights; and, to encourage industry-relevant and applicable research outputs that will informthe different phases of the country’s development.</p>
<p>Third, a solid human capital base is a pre-condition for industrialisation and development. Indeed, human capital development forms an enduring theme in any discussion about the knowledge-based economy. The acquisition and management of knowledge, skills and expertise is a crucial component of Vision 2030. Consequently, key projects that have been recognised as necessary in enhancing the skills base in the country include the training of engineers, technicians, and various ICT cadres. To that end, the human capital audit to be, undertaken by the government will help highlight areas where there are skill gaps.</p>
<p>Fourth, economic development is a function of the extent to which the overall business climate is competitive. Elements of the business environment include the fundamentals of the economy that need to be sound; infrastructure networks, including ICT infrastructure; the speed with which new businesses are registered and licensed; the generation and transmission of energy, for there can possibly be no industrialisation without reliable and affordable energy supply.</p>
<p>Vision 2030 initiatives such as the construction and expansion of roads and the various energy projects are steps in the right direction while other interventions including special economic zones with their incentives and quick approval of business licensesand SME parks to be, established in the counties will help enterprises.</p>
<p>Finally, the aspiration to move Kenya towards the league of a knowledge-based society requires a robust financial system that is not only able to mobile resources and make start-up capital available to budding entrepreneurs, but can also structure development projects in a way that makes them attractive to potential investors.</p>
<p><em><strong>(Dr Omar, is the Director, Economic Pillar at the Kenya Vision 2030 Delivery Secretariat. omar@vision2030.go.ke)</strong></em></p>
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		<title>Talk time is over, let’s now engage our youth</title>
		<link>http://www.capitalfm.co.ke/eblog/2013/06/17/talk-time-is-over-lets-now-engage-our-youth/</link>
		<comments>http://www.capitalfm.co.ke/eblog/2013/06/17/talk-time-is-over-lets-now-engage-our-youth/#comments</comments>
		<pubDate>Mon, 17 Jun 2013 16:36:53 +0000</pubDate>
		<dc:creator>Opinion Leaders</dc:creator>
				<category><![CDATA[Opinion Leaders]]></category>

		<guid isPermaLink="false">http://www.capitalfm.co.ke/eblog/?p=3665</guid>
		<description><![CDATA[<img width="205" height="183" src="http://www.capitalfm.co.ke/eblog/files/2013/06/MACHEL-WAIKENDA2.jpg" class="attachment- wp-post-image" alt="MACHEL-WAIKENDA" style="float:left; margin:0 15px 15px 0;" />By Machel Waikenda]]></description>
				<content:encoded><![CDATA[<img width="205" height="183" src="http://www.capitalfm.co.ke/eblog/files/2013/06/MACHEL-WAIKENDA2.jpg" class="attachment- wp-post-image" alt="MACHEL-WAIKENDA" style="float:left; margin:0 15px 15px 0;" /><p><strong>BY MACHEL WAIKENDA</strong></p>
<p>A week ago the Standard on Saturday carried a very informative article, “The time bomb that is millions of jobless youth”. The article indicated that about half of the Kenyan youth aged 18 to 34 years — millions of them are currently jobless.</p>
<p>The writer laid bare the youth unemployment problem in Kenya. Let’s take it up from there and begin to address the challenges. We need to be candid with ourselves when asking where did the rain start beating us youth? What didn&#8217;t we do right? Who was responsible? Was the failure deliberate and did anyone try to deal with it? If so, how far did they get and why?</p>
<p>One statement that may have passed unnoticed and which was attributed to a Kenyatta University professor was that “it takes the average college graduate five years to get a job”. Five years is the average, meaning that some may be taking as long as eight to ten years. They postpone their lives this long. So, what do they do as they wait for a job? I posit that this is the time very well meaning youth slide into crime, drug abuse and prostitution.</p>
<p>Society is therefore failing the youth. Youth deviance is a manifestation of challenges they are experiencing as they transit into adulthood. The templates used to socialise them are not effective and outdated. Society has a golden chance here to engage the youth, as opposed to bandying blame about and treating them with suspicion.</p>
<p>President Kenyatta has promised to prioritise youth issues in his administration. This he has began to do, going by the Sh25.8 billion budgetary allocation to youth empowerment programmes. But the youth problem is bigger than our imagination as a nation has been able to capture. We must not wait to go through the path of the Middle East and North Africa Spring. The clock is ticking and the hour is late. The youth agenda must not be a preserve of government. It must be everyone’s business, including private sector, religions, media and civil society.</p>
<p>The nation must remove its gloves and confront youth unemployment boldly, like it did with HIV and Aids.</p>
<p>Fortunately we already have established institutions that everyone can work through, or with, to confront these issues. These include the Ministry of Education, Directorate of Youth Empowerment in the Ministry of Planning and Devolution, the National Youth Service, Youth Enterprise Development Fund, National Youth Council and the Department of Arts.</p>
<p>The Directorate of Youth Empowerment will be the focal point on policy and other initiatives targeting the youth. It will also play a co-ordination role. This directorate must be well structured, staffed and well briefed on its role. It should headed by a person who demonstrates energy, focus, passion and resolve to inspire the youth beyond the basic requirement for university degrees and years of experience.</p>
<p>President Kenyatta has said his government will mainstream youth issues into all ministries. The directorate must, therefore, develop indicators that will guide all ministries in serving the youth. These indicators would be the benchmarks for setting targets for the ministries, as well as unambiguous and clear consequences for non-compliance. The directorate could also recommend guidelines to other non-State actors so that all efforts are well co-ordinated and geared towards a common goal.</p>
<p>The Youth Enterprise Development Fund is one of the initiatives to encourage youth self-employment. Indeed, the Fund has recorded tremendous success in awakening entrepreneurship among the youth. But it has also encountered challenges that have impeded its work.</p>
<p>Government has shown faith in the ideals of the fund by allocating it Sh6 billion in the Budget recently tabled before Parliament. However, the Fund has not demonstrated adequate stability and capacity to effectively utilise this money.</p>
<p><em><strong>THINK RADICALLY</strong></em></p>
<p>Priority would be focus on the Youth Fund, to empower it to play a greater role in helping youth create employment. The first of such interventions would be to end leadership wrangles at the Fund. Hardly a month passes without infighting in the Fund playing itself out in the media.</p>
<p>Let government dissolve the current board and appoint a professional one, in accordance with legal order number 63 of 2007, which established the Fund. This order states clearly how the board should be appointed. The new board must restructure the Fund to enhance delivery.</p>
<p>The National Youth Service has recorded tremendous progress since its founding in 1964. The service (NYS) must link its programmes to other youth focused programmes such as the Youth Enterprise Development Fund.</p>
<p>IIt could also use its resources, including land and equipment, intensively to help as many youth as possible. Its leadership must think radically and introduce programmes of short-term benefit such as rehabilitation and reintegration of street families and drug addicts. We also hope to see the leadership stretch its imagination on what additional roles the NYS can play to alleviate the youth problem.</p>
<p>The National Youth Council is charged with, among other things, acting as a voice and bridge to ensure Government and other policy makers are kept informed of the views and aspirations of the youth, and regulating and co-ordinating initiatives being undertaken by youth groups, youth-focused community-based organisations, and other organisations.</p>
<p>The NYC will also promote and popularise the National Youth Policy.</p>
<p>IIt is advisable that the council urgently be operationalised to mobilise youth towards opportunity and gainful pursuits, besides being used the vehicle of choice for youth inclusion when designing youth-focused initiatives.</p>
<p>We should also do a comprehensive audit of our education system to see to what extent it prepares our youth for the world outside school. We must ensure that the quality of mentorship and talent development in our school system, right from preschool to university, addresses the challenges of modern Kenya. We need to enrich the schooling process to ensure its graduates can navigate the pitfalls of today.</p>
<p>What is clear is that we must address youth unemployment with the same urgency we would address a disaster. Only this way can we set alight the hope of a new day dawning.</p>
<p><em>(The Writer is TNA Director of Communications and Secretary of Arts and Entertainment and Board member of World Youth Parliament)</em></p>
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		<title>Why the key to ASAL community aspirations is devolution</title>
		<link>http://www.capitalfm.co.ke/eblog/2013/06/16/why-the-key-to-asal-community-aspirations-is-devolution/</link>
		<comments>http://www.capitalfm.co.ke/eblog/2013/06/16/why-the-key-to-asal-community-aspirations-is-devolution/#comments</comments>
		<pubDate>Sun, 16 Jun 2013 06:58:33 +0000</pubDate>
		<dc:creator>Opinion Leaders</dc:creator>
				<category><![CDATA[Opinion Leaders]]></category>

		<guid isPermaLink="false">http://www.capitalfm.co.ke/eblog/?p=3662</guid>
		<description><![CDATA[<img width="205" height="183" src="http://www.capitalfm.co.ke/eblog/files/2013/06/NAISULA-LESUUDA.jpg" class="attachment- wp-post-image" alt="NAISULA-LESUUDA" style="float:left; margin:0 15px 15px 0;" />By Naisula Lesuuda]]></description>
				<content:encoded><![CDATA[<img width="205" height="183" src="http://www.capitalfm.co.ke/eblog/files/2013/06/NAISULA-LESUUDA.jpg" class="attachment- wp-post-image" alt="NAISULA-LESUUDA" style="float:left; margin:0 15px 15px 0;" /><p><strong>NAISULA LESUUDA</strong></p>
<p>Since 2009, I have been part of The Peace Caravan, an initiative that has relentlessly championed the cause of peace in Kenya’s Arid and Semiarid Lands (ASALs), which are predominantly inhabited by pastoralists.</p>
<p>Notable Peace Caravan veterans comprise professionals from pastoral communities, among them Principal Secretary (PS) nominees Richard Lesiyampe and James Teko Lopoyatum.</p>
<p>The central message of The Peace Caravan urges all ASAL communities to embrace development and abandon cattle rustling and the killing of fellow humankind in a cultural practice that is clearly overtaken by time. </p>
<p>That two key drivers of The Peace Caravan have been as much as identified as material for PS nominees in the current government is in itself great motivation to many more amongst our communities.</p>
<p>These nominations should be resounding testimony that ASAL communities too should aspire for national leadership and press on towards higher levels of professional excellence whilst being trustees of their communities. </p>
<p>Because of the very character of the ASALs, neither devolution nor privileged positions of some of their very own will translate into greater well being without peace being the cornerstone.</p>
<p>Peace in the ASALs is complex. Lack of it is not about sheer delinquency and disregard for the law.  Cattle rustling, common among many pastoralists living in ASALs, is for instance, a cultural practice that does not deliberately aim at disrupting peace and harmonious co-existence among neighbouring communities. </p>
<p>Rather, it is more of an outdated hangover of pre-modern bravado that ought to be replaced with 21st century human development pursuits. As long as such practices persist and as long as the government of the day does not identify the root cause of the breakdown of peace among pastoralists, ineffective deterrents will continue to be prescribed for such quests as peace and security in these areas.</p>
<p><em><strong>(Lesuuda (OGW) is a Senator, communication consultant and peace ambassador).</strong></em></p>
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		<title>Why we need liberalisation of power distribution in Kenya</title>
		<link>http://www.capitalfm.co.ke/eblog/2013/06/15/why-we-need-liberalisation-of-power-distribution-in-kenya/</link>
		<comments>http://www.capitalfm.co.ke/eblog/2013/06/15/why-we-need-liberalisation-of-power-distribution-in-kenya/#comments</comments>
		<pubDate>Sat, 15 Jun 2013 07:50:35 +0000</pubDate>
		<dc:creator>Opinion Leaders</dc:creator>
				<category><![CDATA[Opinion Leaders]]></category>

		<guid isPermaLink="false">http://www.capitalfm.co.ke/eblog/?p=3660</guid>
		<description><![CDATA[<img width="205" height="183" src="http://www.capitalfm.co.ke/eblog/files/2013/06/DANN-MWANGI.jpg" class="attachment- wp-post-image" alt="DANN-MWANGI" style="float:left; margin:0 15px 15px 0;" />By Dann Mwangi]]></description>
				<content:encoded><![CDATA[<img width="205" height="183" src="http://www.capitalfm.co.ke/eblog/files/2013/06/DANN-MWANGI.jpg" class="attachment- wp-post-image" alt="DANN-MWANGI" style="float:left; margin:0 15px 15px 0;" /><p><strong>DANN MWANGI</strong></p>
<p>Kenya Power is a monopoly in distribution of power in Kenya.  With this monopoly, they have a heavy burden to provide uninterrupted and efficient power to Kenya as failure to do so, Kenyans, Nairobians included, are left under the mercy of candles and non-productivity. </p>
<p>Except a few industries which can run on the expensive and unsustainable diesel energy when there is no power, many residents of Nairobi are suffering as there are frequent power outages in Nairobi County. These power outages are common in other 46 counties too.</p>
<p>However, there is a ray of hope if Marakwet East MP David Bowen fulfills his promise of bringing a Bill in Parliament that will liberalise power distribution in Kenya and consequently break the monopoly that Kenya Power has enjoyed for many years. </p>
<p>Monopoly of power distribution by this company must be broken as it has made the company unresponsive and largely indifferent about the plight of its customers. Further, it has made the company go scot free despite high levels of power outages as once the law regime is changed, power distributors will be compelled to pay customers compensation for power outages. </p>
<p>Since the distributors will made to compensate consumers for power outages and surges, they will consequently increase their productivity and efficiency as failure to do so will attract financial penalties. In addition, breaking of this monopoly will force a competition for customers by the distributors and with such competition, consumers will benefit more as the cost of power and installation will be cheaper and companies will handle customers&#8217; complaints with care. </p>
<p>Today, the manner in which Kenya Power handles customer&#8217;s complaints is below average and can largely be attributed to the fact that it enjoys a monopoly in power distribution. Cases of wrong billing are many and if a customer wants a correction of the bill, you must first pay them the incorrect figure before they correct it, that&#8217;s if they will. Further, cases of unexplained inconsistent billing are high and lack of pre-paid cards for pre-paid customers.</p>
<p>Therefore, all efforts to break this monopoly must be supported by all Kenyans as it will be of greater good than the current situation. It will not only make power distributors respect the customers but also bring the cost of power down. With lower cost of power, Kenyans will pay less and the cost of basic goods and commodities will go down due to cheaper production costs in the industries.</p>
<p>Above all, cheaper power will make the cost of doing business in Kenya low and sustainable thus attracting both local and international investors. With more investors, the economy will expand thereby creating jobs nationally and at the counties levels for thousands of jobless Kenyans. </p>
<p>Moreover, with more power distributors, many parts of the country that have lacked power connectivity due to politicization of power distribution channels will be opened up thus spurring economic growth. This will promote other economic sectors such as education and health as lack of power in some areas inhibit development of information and communication technology and proper medical care as some health facilities can only be effectively run with power.</p>
<p>Our legislators must therefore legislate laws that will liberalize power distribution in Kenya as this will benefit the country.</p>
<p><em><strong>(Mwangi is a lawyer dann@cps-research.com)</strong></em></p>
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		<title>Google has not given US government access to servers</title>
		<link>http://www.capitalfm.co.ke/eblog/2013/06/14/google-has-not-given-us-government-access-to-servers/</link>
		<comments>http://www.capitalfm.co.ke/eblog/2013/06/14/google-has-not-given-us-government-access-to-servers/#comments</comments>
		<pubDate>Fri, 14 Jun 2013 11:55:08 +0000</pubDate>
		<dc:creator>Opinion Leaders</dc:creator>
				<category><![CDATA[Opinion Leaders]]></category>

		<guid isPermaLink="false">http://www.capitalfm.co.ke/eblog/?p=3658</guid>
		<description><![CDATA[<img width="203" height="183" src="http://www.capitalfm.co.ke/eblog/files/2013/06/GUEST-BLOG.jpg" class="attachment- wp-post-image" alt="GUEST-BLOG" style="float:left; margin:0 15px 15px 0;" />By Larry Page and David Drummond]]></description>
				<content:encoded><![CDATA[<img width="203" height="183" src="http://www.capitalfm.co.ke/eblog/files/2013/06/GUEST-BLOG.jpg" class="attachment- wp-post-image" alt="GUEST-BLOG" style="float:left; margin:0 15px 15px 0;" /><p>Dear Google users -</p>
<p>You may be aware of press reports alleging that Internet companies have joined a secret US government program called PRISM to give the National Security Agency direct access to our servers. As Google’s CEO and Chief Legal Officer, we wanted you to have the facts.</p>
<p>First, we have not joined any program that would give the US government &#8211; or any other government &#8211; direct access to our servers. </p>
<p>Indeed, the US government does not have direct access or a “back door” to the information stored in our data centers. We had not heard of a program called PRISM until yesterday.</p>
<p>Second, we provide user data to governments only in accordance with the law. Our legal team reviews each and every request, and frequently pushes back when requests are overly broad or don’t follow the correct process. </p>
<p>Press reports that suggest that Google is providing open-ended access to our users’ data are false, period. Until this week’s reports, we had never heard of the broad type of order that Verizon received &#8211; an order that appears to have required them to hand over millions of users’ call records. </p>
<p>We were very surprised to learn that such broad orders exist. Any suggestion that Google is disclosing information about our users’ Internet activity on such a scale is completely false. </p>
<p>Finally, this episode confirms what we have long believed &#8211; there needs to be a more transparent approach. Google has worked hard, within the confines of the current laws, to be open about the data requests we receive. </p>
<p>We post this information on our <a href="http://www.google.com/transparencyreport/userdatarequests/US/" target="_blank">Transparency Report </a>whenever possible. We were the first company to do this. And, of course, we understand that the US and other governments need to take action to protect their citizens’ safety &#8211; including sometimes by using surveillance. </p>
<p>But the level of secrecy around the current legal procedures undermines the freedoms we all cherish.</p>
<p>Posted by Larry Page, CEO and David Drummond, Chief Legal Officer</p>
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		<title>The financial aspects of Devolution</title>
		<link>http://www.capitalfm.co.ke/eblog/2013/06/13/the-financial-aspects-of-devolution/</link>
		<comments>http://www.capitalfm.co.ke/eblog/2013/06/13/the-financial-aspects-of-devolution/#comments</comments>
		<pubDate>Thu, 13 Jun 2013 16:52:36 +0000</pubDate>
		<dc:creator>Opinion Leaders</dc:creator>
				<category><![CDATA[Opinion Leaders]]></category>

		<guid isPermaLink="false">http://www.capitalfm.co.ke/eblog/?p=3653</guid>
		<description><![CDATA[<img width="205" height="183" src="http://www.capitalfm.co.ke/eblog/files/2013/06/KAMANDE-DANIEL.jpg" class="attachment- wp-post-image" alt="KAMANDE-DANIEL" style="float:left; margin:0 15px 15px 0;" />By Daniel Kamande]]></description>
				<content:encoded><![CDATA[<img width="205" height="183" src="http://www.capitalfm.co.ke/eblog/files/2013/06/KAMANDE-DANIEL.jpg" class="attachment- wp-post-image" alt="KAMANDE-DANIEL" style="float:left; margin:0 15px 15px 0;" /><p><strong>BY DANIEL KAMANDE</strong></p>
<p>The March 2013 General Elections saw Kenyans elect the Governors, Senators and County Representatives. This made the establishment of devolved Government a reality as envisioned in the new Constitution. With devolution, Kenya is administratively divided into 47 Counties. Equally, power is transferred from the National Government to County Governments.</p>
<p>The new Constitution recognizes one of the main objectives and principles of a devolved Government as the right of communities to manage their own affairs and further their development. It is expected that this will give the people a sense of identity and self-empowerment. They will feel recognized in their contribution to the growth of their own county. However, there is a lot that still needs to be done so that the gains envisioned in the constitution and more so the devolution to be appreciated by all Kenyans.</p>
<p>How will the resources be shared? The new Constitution provides for equitable sharing of national resources. Specifically, the Constitution requires that revenue raised nationally be shared equitably between the National and County Governments. It details a criterion to be followed in vertically determining the equitable shares of both the National and County Governments on the one hand; and horizontally among the 47 counties.</p>
<p>The law requires that at least 15% of the national revenue collected by National Government be shared equally among the 47 counties. Already there is hot debate on the allocation of the monies that shall go to the County Governments, with division emerging between the National Assembly and the Senate on what amount needs to be allocated to the devolved units.</p>
<p>In addition, the Commission on Revenue Allocation (CRA) came up with some indicators that are used to allocate funds to counties. These indicators are population, poverty levels, county land area, prudential financial management/performance index, and fund equalization index. CRA still faces some challenges as some of its allocations are meeting varied reactions from Kenyans.</p>
<p>Will the County Governments have power to raise and spend revenue? The Constitution through taxation section gives County Government power to generate revenue. The Country Government may impose property rates, entertainment taxes and any other tax that it is authorized to impose by an Act of Parliament.</p>
<p>In addition, a County Government may borrow with the approval of the County Government’s Assembly and only if the National Government guarantees the loan. Once various taxes have been determined they will have to be collected. Before Devolution, the practice was that Local Authorities collected local taxes within their jurisdiction.</p>
<p>Experience indicated that most Local Authorities had limited capacity to discharge that function. With the new Constitution, it is still a subject of debate whether KRA will collect revenue on behalf of the Counties or whether it shall assist the Counties in building their own capacities to collect their own revenue. There has been dispute between the Ministry of Finance and the Transitional Authority over the administration of the revenue of National and County governments.</p>
<p>In the long term, if the County Governments are suppressed leaving the control of finances in the hands of the National Government, then the whole concept of devolution will be defeated. In fact, County Governments without the power to control their own finances will be political and administrative units, negating the whole idea of devolution of the country into counties with more efficient financial management systems.</p>
<p>What will be cost of devolution? The costs attributed to devolution are not new costs. Previously, there were some funds (budget) which were annually earmarked for districts and the Councils. With the new Constitution most of the Districts and the Councils budgeted items are transferred to Counties as the functions are equally transferred. County budget need to reflect this reality. The salaries and remuneration commission need to establish realistic salaries for public officers at County level. For example, the commission may consider providing for allowances, not salaries, for County Officers whose functions will not call for full time commitment.</p>
<p>Would Kenya experience improvements in living standards that are associated with devolution? Where it is practiced, devolution has effects on the nationals of the country both directly and indirectly. In the case of UK, devolution saw falling levels of poverty and improving employment rates across the country after ten years of initiation.</p>
<p>In addition, there was improvement of social housing and on social care devolution which resulted in reduction of costs for older people. Every living being with free will and self-movement seeks to find what is best for him and the community. If every individual would have the common good within them, then without doubt we would reap the positive effects of devolution.</p>
<p>Over the years Kenya has witnessed a culture of corruption, poor governance and ethnicity which have resulted in ethnic conflicts. Insecurity is widespread and this has ensured that there is still widespread poverty. Political uncertainties, marginalization, excessive waste of natural resources, excessive political intolerance, gagging as well as cut-throat political competition have become the order of the day.</p>
<p>With the new Constitution, the devolved government is a new dawn. It is expected that Kenyans will continue to elect responsible leaders who are development oriented to govern the devolved Counties.</p>
<p><em><strong>(The writer is an Economic Expert with Ernst &amp; Young. Email: daniel.kamande@ke.ey.com. The views expressed are not necessarily those of Ernst &amp; Young)</strong></em></p>
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		<title>Is Kenya heading back to 1964?</title>
		<link>http://www.capitalfm.co.ke/eblog/2013/06/12/is-kenya-heading-back-to-1964/</link>
		<comments>http://www.capitalfm.co.ke/eblog/2013/06/12/is-kenya-heading-back-to-1964/#comments</comments>
		<pubDate>Wed, 12 Jun 2013 17:57:22 +0000</pubDate>
		<dc:creator>Opinion Leaders</dc:creator>
				<category><![CDATA[Opinion Leaders]]></category>

		<guid isPermaLink="false">http://www.capitalfm.co.ke/eblog/?p=3651</guid>
		<description><![CDATA[<img width="205" height="183" src="http://www.capitalfm.co.ke/eblog/files/2013/06/GIBSON-KAMAU-KURIA.jpg" class="attachment- wp-post-image" alt="GIBSON-KAMAU-KURIA" style="float:left; margin:0 15px 15px 0;" />By Gibson Kamau Kuria]]></description>
				<content:encoded><![CDATA[<img width="205" height="183" src="http://www.capitalfm.co.ke/eblog/files/2013/06/GIBSON-KAMAU-KURIA.jpg" class="attachment- wp-post-image" alt="GIBSON-KAMAU-KURIA" style="float:left; margin:0 15px 15px 0;" /><p><strong>BY GIBSON KAMAU KURIA</strong></p>
<p>When Senator Murkomen stated that there is a conspiracy to cripple the Senate and have it wound up, he probably used an understatement. Probably, there is a plan to return Kenya to the constitutional order which obtained between 1960s and 1991. </p>
<p>J. H. Proctor Jr., in an article titled ‘The Role of Senate in the Kenyan Political System’ observed that ‘a little more than a month after the meeting of the Senate on 7th June, 1963, an Opposition Member of Parliament voiced the suspicion that some Ministers had a negative attitude towards that House and that there was a rumour circulating that the Senate might be washed out’. He further says that in 1964, the Leader of Government Business acknowledged that there had been wide speculation as to whether the Senate should be scrapped. </p>
<p>One hopes that what Senator Murkomen said, will not prove prophetic. If it does, Kenya may be commencing a cycle of constitutional amendments which commenced in 1964 and ended in 1988. By that time, among other organs, the Police Service Commission and the Senate had been abolished.</p>
<p>The country was a one – party State in which the Attorney General, the Judiciary and Auditor General had lost their independence. Rule of law and constitutionalism had been greatly undermined, if not, virtually banished. The Members of Parliament have made it clear, in the course of their debates, that they consider their House to be the Superior House.</p>
<p>That notion is now embodied in the Bill which was assented to by the President on 10th June, 2013. One hastens to add that according to his statement, the President did not assent it because he supported its principle but rather that, he feared that there would be a government shut down if no money was approved by government before 30th June, 2013.<br />
When Bill Clinton was the President and Professor Gingrich was the Speaker of the Lower House or which is also known as the House of Representatives, the government shut down for a few days because of lack of funds. No doubt, that was the consideration of the President.</p>
<p>2.There are some members of the National Assembly who would like the country to return to the one – party era which was banished by the referendum of 4th August, 2010 which brought in the new Constitution. Honourable Mithika’s motion to nullify the Legal Notice which communicated the new salaries of MPs is based on an outdated notion of supremacy of the Parliament. </p>
<p>That motion disregarded the powers of the Salaries and Remuneration Commission under section 231 of the Constitution to determine the salaries of the Members of Parliament. Similarly, the disregard of the views of the Senate on the Division of Revenue Bill is based on the same outdated notion. Before 4th August, 2010, our Constitution established a single chamber Parliament and a unitary government. It had no devolved government, the one established by the 1963 Constitution having been abolished in 1965 through a constitutional amendment. If the devolved government is killed at birth, we shall return to the unitary or centralised government. </p>
<p>3.	In 1966, the Senate, the second chamber of Parliament under the 1963 Constitution, was abolished through a constitutional amendment. Honourable Murkomen was hinting at this possibility or plan. </p>
<p>Recently, Honourable Irungu Kang’atta, the MP for Kiharu, informed the country that he will be bringing a Constitutional Amendment bill through which he will start a process of abolishing the Senate. Even if he tables such a Bill and it is passed, by virtue of Article 265 of the Constitution, it will require a referendum to become law because it is a Bill touching on “the Supremacy of the Constitution, the Sovereignty of the people, the function of Parliament, objects, principals and structure of devolved government”. </p>
<p>4.	The 1966 abolition of the Senate was part of a bigger project of dismantling the constitutional order which was established by the 1963 Constitution. That project was discussed by former Attorney General, Mr. C. N. Njonjo in an article titled, ‘Recent Constitutional Changes in Kenya’ which he published in the 1965 Issue of the East Africa Law Journal. </p>
<p>To achieve that goal, the Parliament then used the very notion which is being touted today by the National Assembly, purportedly derived from the British Constitution. According to that notion, the British Parliament has the power to make whatever constitutional changes it desires. In practice, however, that does not happen. From time to time, the British government organises for referenda on issues of fundamental concern to the British people. It has been announced that a referendum will be held to decide if Britain should remain in the European Union.<br />
The notion used in Kenya is opposed to the principle in a democracy of a limited government. That absolute power is reserved to the people who can replace one Constitution with another. As long ago as 1970, in Ukunda v R, (1970) EA 453, a constitutional court held that in Kenya, we have the supremacy of the Constitution and not that of Parliament or one organ of government. The Constitution is the expression of the will of the people. The supremacy of people is expressed in the Pre – amble of the Constitution which, inter alia, states that, </p>
<p>“We, people of Kenya, &#8230;&#8230;.., adopt, enact and give this Constitution to ourselves and our future generations.”</p>
<p>The Constitution belongs to the present and future generations – not to either of the two chambers of the current Parliament.</p>
<p>5.	As the two – chamber Parliament of 1964 found cumbersome the exercise of the power to amend the Constitution which required it to get the support of 75% of all Members of the National Assembly for some provisions and 90% support of all the members of the Senate for the same provisions, it persuaded the two Houses to accept an amendment whereby any amendment to the Constitution would require the support of only 65% of all the members of either House. Once this amendment was passed, the die was cast. Constitutional amendments were passed, thereafter:  </p>
<p>a.	to merge, in 1964, the Offices of the Prime Minister with that of Head of State and called the New Office ‘The President’ who wielded more power than Presidents wield in democracies; and abolished the Police Service Commissions;</p>
<p>b.	in 1965, to abolish the Devolved Government then known as Regionalism;</p>
<p>c.	in 1966, to abolish the Senate;</p>
<p>d.	in 1982, to abolish multi – partyism;</p>
<p>e.	in 1987, to abolish the independence of the Attorney General;</p>
<p>f.	in 1988, to abolish the independence of the Judiciary and the Auditor and Controller General.</p>
<p>6.	It is the undemocratic philosophy embodied in the notion of Supremacy of Parliament being used now which caused the very suffering which led to the call for the rewriting of the Constitution. Kenyans are asking, for how long they are going to continue rewriting their Constitutions?</p>
<p>Conclusion</p>
<p>7.	Two sad things have emerged from the debates on the salaries of MPs and the Division of Revenue Bill. The first one is that the National Assembly does not have the legal advisors it ought to have. The second thing is that the members of the National Assembly do not understand that what we have in Kenya now is the supremacy of the Constitution or People and not that of either the National Assembly or the Senate. </p>
<p>8.	Kenyans should now demand that the Division of Revenue Act be repealed and that they be given better services by their Members of Parliament. </p>
<p><strong>(Gibson Kamau Kuria is an Advocate and Senior Counsel)</strong><em></p>
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		<title>Limited options in financing ambitious 2013-14 budget</title>
		<link>http://www.capitalfm.co.ke/eblog/2013/06/11/limited-options-in-financing-ambitious-2013-14-budget/</link>
		<comments>http://www.capitalfm.co.ke/eblog/2013/06/11/limited-options-in-financing-ambitious-2013-14-budget/#comments</comments>
		<pubDate>Tue, 11 Jun 2013 06:58:35 +0000</pubDate>
		<dc:creator>Opinion Leaders</dc:creator>
				<category><![CDATA[Opinion Leaders]]></category>

		<guid isPermaLink="false">http://www.capitalfm.co.ke/eblog/?p=3648</guid>
		<description><![CDATA[<img width="205" height="183" src="http://www.capitalfm.co.ke/eblog/files/2013/06/DAVID-WANYOIKE.jpg" class="attachment- wp-post-image" alt="DAVID-WANYOIKE" style="float:left; margin:0 15px 15px 0;" />By David Wanyoike]]></description>
				<content:encoded><![CDATA[<img width="205" height="183" src="http://www.capitalfm.co.ke/eblog/files/2013/06/DAVID-WANYOIKE.jpg" class="attachment- wp-post-image" alt="DAVID-WANYOIKE" style="float:left; margin:0 15px 15px 0;" /><p><strong>BY DAVID WANYOIKE</strong></p>
<p>The 2013-14 budget is expected to be an inspirational one largely moulded to conform to the new government&#8217;s ambitious development agenda. According to estimates presented to the National Assembly by the Treasury, the total budget for the fiscal year 2013-14 is anticipated to be over Sh1.6 trillion. </p>
<p>The projected increased spending was expected based on immense funding requirements both at the national and county levels. However, in spite of the expected ambitious spending plan by the government, the budget is likely to offer plenty of troubling questions. The budget financing prospects remain a major concern.</p>
<p>Majority of Kenyans are hoping for a comprehensive budget statement that could tackle the widening deficit and offer stability on policy volatility. The big question is what are the financing options available to the new occupant of the Treasury portfolio?</p>
<p>The readily available option that could easily address the budget financing headache would be raising of the taxes. However, it would be heinous move for the new administration to even think of increasing taxes on the citizens who already feel overburdened by the existing tax regime. It is thus pretty clear that increasing of taxes, particularly the income taxes, may not be an option. Indeed, taxpayers will more likely be keen to watch how the available taxes are applied on policies likely to improve their welfare. </p>
<p>Tax morality is set to become a major issue where people get disgruntled with what they get for their tax money. Concerns are likely to be directed at the efficiency in spending tax money, the ability to broaden the tax base and the avoidance of falling too deeply into debt. </p>
<p>The government anticipates the tax revenue to grow by more than 20 percent in the fiscal year 2013-14. The question begging for an answer is how this would be possible without radical tax policies coming into play. The tax structure is expected to remain almost intact, yet tax revenues are estimated to rise by 20 percent.</p>
<p>The budget estimates for tax revenues for fiscal year 2012-13 are expected to fall short of the budgeted estimates. It is also very possible that other revenue sources such as non-tax revenue, grants and loans could be patently overstated. What then are the financing options available to the current administration?</p>
<p>The obvious solution to the anticipated tax revenue impediment is raising the sin taxes. The government has always found it easy to reign on the sin taxes, a move that has become synonymous with every budget. The increase of sin taxes may however not be adequate to cover the expected ambitious tax revenue growth. This being the case, the government is expected to become more creative through invention of viable solutions to the challenges posed by limited revenue sources.</p>
<p>Firstly, excise duty on financial services is expected to give a significant boost to the realisation of the tax revenue levels. Excise duty on financial services was introduced in January 2013 through Finance Act 2012 although its implementation is still on hold due to technical and implementation challenges.</p>
<p>The Finance Act amendment sought to impose 10pc excise duty on money transfer services fees charged by cellular phone service providers, banks, money transfer agencies and other financial service providers. The cellular phone service providers are already complying with this legislation. The amendment also sought to impose 10pc excise duty on other fees charged by financial institutions. The National Treasury Secretary is expected to urgently address the noted challenges to ensure speedy implementation.</p>
<p>VAT presents yet another straightforward opportunity to boost attainability of the tax revenue target. VAT has become a prevalent source of revenue for governments world over due to its ease of administration. Kenya has had a keen interest in VAT as a key source of revenue, a fact largely affirmed by the ambitious, albeit stalled, overhauling process of the VAT law. </p>
<p>The government has been working tirelessly in developing a new VAT strategy that harmonizes and simplifies VAT rules to address the bottlenecks witnessed in the current regime.  The VAT Bill 2012 offers the requisite solutions to the VAT woes experienced over the years. The Treasury Secretary will earnestly be keen to have the Bill enacted into law.</p>
<p>The thorny issue regarding taxation of capital gains could also feature to wade off the financing headache facing the new administration. Taxation of capital gains was suspended in Kenya in 1980s to boost investments in real estate sector as well as the deepening of the financial sector through marketable securities. However, since then the real estate and securities market have experienced tremendous growth.  Indeed, capital gains arising from real estate transactions have made many multi-millionaires than any other sector in the country. </p>
<p>Notably, it can be argued that the sector has not made its share of contribution to the consolidated fund. Capital gains tax is present in many Africa countries including some of the EAC member states such as Uganda and Tanzania. </p>
<p>The likelihood of reintroduction of capital gains tax is eminent judging by the tax amendment recently introduced on the oil and mineral sector transactions. The Finance Act 2012 introduced an amendment to bring to taxation the consideration relating to sale of property or shares in respect of oil companies, mining companies or mineral prospecting companies. </p>
<p>Sale of property or shares broadly includes such transactions as the assignment of rights, sale of companies and businesses, and takeovers or other non inventory assets. The Treasury Secretary is likely to take this amendment a notch higher by reigning on the real estate business transactions. </p>
<p>The government is facing the challenge of addressing poverty and inequality while also having to build a productive relationship with business. While the financing of the ambitious budget is a daunting task, the government will ultimately be judged by voters on how well they craft suitable policies to meet financing targets without hurting their welfare.</p>
<p><em><strong>(The writer is a tax expert with Ernst &#038; Young. Email: david.wanyoike@ke.ey.com.  The views expressed are not necessarily those of Ernst &#038; Young).</strong></em></p>
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		<title>It&#8217;s critical 30pc tenders for youth pledge is kept</title>
		<link>http://www.capitalfm.co.ke/eblog/2013/06/10/its-critical-30pc-tenders-for-youth-pledge-is-kept/</link>
		<comments>http://www.capitalfm.co.ke/eblog/2013/06/10/its-critical-30pc-tenders-for-youth-pledge-is-kept/#comments</comments>
		<pubDate>Mon, 10 Jun 2013 06:47:26 +0000</pubDate>
		<dc:creator>Opinion Leaders</dc:creator>
				<category><![CDATA[Opinion Leaders]]></category>

		<guid isPermaLink="false">http://www.capitalfm.co.ke/eblog/?p=3645</guid>
		<description><![CDATA[<img width="205" height="183" src="http://www.capitalfm.co.ke/eblog/files/2013/06/MACHEL-WAIKENDA1.jpg" class="attachment- wp-post-image" alt="MACHEL-WAIKENDA" style="float:left; margin:0 15px 15px 0;" />By Machel Waikenda]]></description>
				<content:encoded><![CDATA[<img width="205" height="183" src="http://www.capitalfm.co.ke/eblog/files/2013/06/MACHEL-WAIKENDA1.jpg" class="attachment- wp-post-image" alt="MACHEL-WAIKENDA" style="float:left; margin:0 15px 15px 0;" /><p><strong>MACHEL WAIKENDA</strong></p>
<p>Recently I shared a lift out of one of the government offices with a young man, who identified himself only as Bob. I struck conversation with him and he explained to me that he had visited the government department to apply for a tender.</p>
<p>As we waited to cross the road he told me that he was not sure what his chances of success were. He added that he is looking forward to the promise President Uhuru Kenyatta made to enhance youth-specific affirmative action on government procurement. He even let out the secret as to whom he would vote for president in 2017 if this promise were implemented.</p>
<p>President Kenyatta has said that his government will allocate 30pc of its procurement to young entrepreneurs so as to mainstream the participation of youth-run enterprises in economic development. </p>
<p>He has also promised to make the public procurement regime open, transparent and corruption-free in order to ensure that all deserving young entrepreneurs have equal opportunity to secure government tenders.</p>
<p>But Bob had a concern; that a similar directive by retired President Mwai Kibaki to reserve 10pc of government procurements for the youth had not borne fruit to his business. He says that he and hundreds of other youths were registered by the Treasury for this programme but he has not accessed any government business at all.</p>
<p>Media reports indicated that the programme was frustrated by government ministries that resisted the directive. The media reports also indicated that there was no legal mechanism to whip ministries into implementing the initiative.</p>
<p>These reports clearly bring out three facts. One, President Kenyatta can learn useful lessons from the past regime&#8217;s failure. Two, the programme needs to be well thought out so that it does not frustrate young people, who are unquestionably ambitious, hopeful and expectant of quick results. Three, the law needs to be amended so that it does not impede the success of this programme.</p>
<p>Once these issues have been addressed the government should publish clear guidelines on what the youth need to do to qualify for the contracts, so that they are not used as fronts by well established firms.</p>
<p>Key players<br />
These guidelines should also ensure that all youth enterprises, irrespective of their size, enjoy a slice and that it does not become the preserve for a select few. The guidelines should be well disseminated to the youth so that they are not taken advantage of by crooks and wayward government officials.</p>
<p>A reporting mechanism also needs to be developed in order to identify any government departments that may not be meeting their obligation. These reports should be available for the public to query, and to encourage the youth to participate in the programme.</p>
<p>Actualization of this programme will put about Sh300 billion in the hands of the youth. It will also give a new lease of life to youth-owned enterprises and accelerate their growth. Their growth will create numerous job opportunities besides giving youth renewed confidence in engaging in income-generating activity. The youth will become key players in the economy. You can then expect them to maintain peace as they will not want any situation that will adversely affect the business environment.</p>
<p>But challenges still abound.  For instance, how will this preferential system be implemented in a devolved government? Also, will the youth be able mobilise the requisite finances to honour the contracts, some of which may involve importation and expensive machinery? How will they fare in a country where government is reputed for taking ages to pay its suppliers? What safeguards will be in place to ensure youths do not fall into the traps of rent seekers?</p>
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