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"id": 1569932,
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"text_counter": 144,
"type": "speech",
"speaker_name": "Hon. Kingi",
"speaker_title": "The Speaker",
"speaker": null,
"content": " Go straight to the question, Hon. Osotsi."
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"text_counter": 145,
"type": "speech",
"speaker_name": "Sen. Osotsi",
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"speaker": null,
"content": "What are these constraints that the Ministry is facing, particularly in disbursing the money under additional allocation that we passed in the Disbursement Schedule last week? Secondly---"
},
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"id": 1569934,
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"text_counter": 146,
"type": "speech",
"speaker_name": "Hon. Kingi",
"speaker_title": "The Speaker",
"speaker": null,
"content": " Hon. Osotsi, under Standing Order 51(c)(7)(b), you are entitled to ask only one supplementary question, which you have. Hon. CS, proceed to respond."
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"id": 1569935,
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"speaker": null,
"content": "The Cabinet Secretary for the National Treasury and Economic Planning"
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"content": "(Hon. John Mbadi): The constraints generally would be on cash flow challenges, especially where the funding is from GoK, and more particularly where we fail to meet the revenue targets by the Kenya Revenue Authority (KRA). We have so many demands such that, at times, there are some months which are very bad, especially the months where we are repaying loans. We usually have challenges in the months of January, February, serious challenges in the month of May, and then July. Those are months where we repay the Chinese loan on the Standard Gauge Railway (SGR). Those are the same months, like January, where we pay capitation to schools, which is at times almost Kshs50 billion. Remember, in every month, we pay Kshs80 billion in salaries. So, if you add Kshs80 billion and Kshs40 billion, that is already Kshs120 billion. If you add that to debt repayments of approximately Kshs60 billion, that already is over Kshs200 billion, yet revenue collection in a month is an average of approximately Kshs200 billion. Now, that poses a problem to funding counties and other development expenditures. However, I would tell you that we still work very hard to make sure that counties get priority in terms of funding. The electronic version of the Senate Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Director, Hansard and AudioServices, Senate."
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"text_counter": 149,
"type": "other",
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"speaker": null,
"content": "When we have limited resources, sometimes we look at even the balances of counties and release some funds to some counties, which have low balances. For those that still have high balances, we tell them to wait. When they spend, we give them. As we speak, we have paid all the monies to all the counties up to the end of April, but we still have the months of May and June outstanding. Of course, we still have that constraint. This year, particularly, has been a terrible year. Apart from the fact that we had that economic shutdown---"
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"text_counter": 150,
"type": "scene",
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"speaker_title": "",
"speaker": null,
"content": "(Loud consultations)"
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"type": "other",
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"speaker": null,
"content": "I want hon. Members to listen to me on this. Apart from the economic shutdown that we had for almost two or three months---"
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"id": 1569940,
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"text_counter": 152,
"type": "speech",
"speaker_name": "Hon. Kingi",
"speaker_title": "The Speaker",
"speaker": null,
"content": " Hon. Cabinet Secretary, you have one minute to make your submissions."
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"id": 1569941,
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"type": "speech",
"speaker_name": "Hon. John Mbadi",
"speaker_title": "The Cabinet Secretary for National Treasury and Economic Planning",
"speaker": null,
"content": " Mr. Speaker, Sir, you could add me two minutes, so that they become three to enable me to explain this bit. Mr. Speaker, Sir, the economic shutdown led to a slowdown in the economic growth in the country and we failed to meet of our targets in terms of revenue collection. We also did not conclude the ninth review with the IMF, therefore, we lost USD$765 million going to budgetary support. As we speak, the World Bank's funding of BOP seems to be going to July because one of the things is that some of the legislations that were precedent to the release of these funds are delayed in the legislative process. The Conflict of Interest Bill was a key Bill for the World Bank to give us funding. When it was unlocked, there was no time to take our approval to the board. Now you see, we are going to June 30th with a Kshs97 billion hole that I did not prepare for as a Cabinet Secretary. These are challenges that inhibit our release of funds. Even when the National Assembly puts pressure on me on the National Government Constituencies Development Fund (NG - CDF), I do not even know what to do because the resources are constrained and we have to balance needs. Do you pay salaries or release money to the NG-CDF or release money to the counties? Do you pay salaries, or do you stop paying salaries? Those are questions that you have to ask yourself. You have debts to pay. You must pay those debts. If you default; the implications for our economy are dire. As I conclude, remember the reason we have tried very hard to make sure that we meet our obligations. There were six countries that were mentioned in 2021 by the IMF as candidates for restructuring as candidates for default. Five have defaulted. It is only Kenya that has survived. Angola, Ethiopia, Ghana, Chad and Zambia have defaulted. Five economies out of six; only Kenya survived."
}
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