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{
"id": 1592082,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1592082/?format=api",
"text_counter": 439,
"type": "speech",
"speaker_name": "Balambala, JP",
"speaker_title": "Hon. Abdi Shurie",
"speaker": null,
"content": "Pension expenditures on the other hand, are projected at Ksh234.9 billion in Financial Year 2025/2026, reflecting a Ksh11.75 billion increase from Ksh223.15 billion in Financial Year 2024/2025. This growth stems from: Ksh6.55 billion rise in ordinary pension payments and Ksh7.74 billion increase in commuted pensions. However, the performance of pension disbursement continues to be affected by slow exchequer releases and system down times. Salaries compensation for constitutional and independent office holders is projected to increase by Ksh584.64 million, growing from Ksh4.08 billion in Financial Year 2024/2025 to Ksh4.73 billion in the Financial Year 2025/2026. The primary driver of this increase is a Ksh543.13 million allocation for judicial salaries, hardship allowance and arrears. Arising from the consideration of the estimates and submissions from stakeholders, the Committee made pertinent observations, including the need to address challenges in pension disbursement in order to take care of our pensioners, enhance cash flow coordination in order to improve budget execution, and that the overreliance on domestic borrowing requires practical and well-sequenced reforms. The reforms in reference include strengthening the National Treasury’s cash and debt management functions, accelerating the rollout of the Treasury Single Account (TSA), and institutionalising frameworks that ensure timely counterpart funding and prudent on-lending practices. Such measures are essential to improving liquidity, reducing commitment fees, and enhancing the credibility of the national budget. Hon. Deputy Speaker, the Committee also noted the need to rebalance borrowing sources and to tap into alternative financing, including grants, climate finance, and concessional loans. We also caution that while instruments like securitisation may provide liquidity, they should be used carefully to avoid undermining fiscal consolidation efforts that might affect public debt sustainability. After our deliberations on the estimates of the CFS under the Budget Estimates for Financial Year 2025/2026 and consultations with various stakeholders, the Committee therefore gives the following recommendations for consideration by the House: 1. In order to ensure full in-year pension disbursement, and clearance of pending obligations, the National Treasury should, within 30 days of the adoption of this report, implement an actionable framework to resolve delays in exchequer releases and address system downtimes that disrupt the processing of pension disbursements. 2. In line with prior resolutions of the National Assembly, the National Treasury should expedite the implementation of the TSA to consolidate idle government cash balances, improve liquidity management, and lower the government’s borrowing costs through more predictable cash flow management. 3. To ensure full and timely disbursement of donor/loan financing and avoid incurrence of commitment fees, the National Treasury should ring-fence domestic counterpart funding from frequent supplementary budget reallocations and make counterpart funding provisions for loan agreements entered to mid- year. 4. To minimise the opportunity cost arising from waived on-lent loans and the payment of called-up government-guarantees, the National Treasury should, within 60 days: (a) Formulate a standardised framework for determining interest rates on on-lent funds and the repayment of called-up guaranteed loans. This framework should be aligned with market benchmarks on interest rates and credit worthiness. The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
},
{
"id": 1592083,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1592083/?format=api",
"text_counter": 440,
"type": "speech",
"speaker_name": "Balambala, JP",
"speaker_title": "Hon. Abdi Shurie",
"speaker": null,
"content": "(b) Should formulate enforcement mechanism to ensure timely repayments and reduce the risk of defaults by institutions benefiting from government financial support. 5. The National Treasury should adopt and enforce performance-based benchmarks and disbursement-readiness protocols to prevent the accumulation of undrawn external loans, which continue to attract costly commitment fees. No new loan agreement should be executed without full compliance with the performance-based benchmarks and disbursement-readiness protocols. 6. To reduce reliance on debt and enhance access to alternative financing, the National Treasury should, within 60 days of adoption of this Report, develop and publish a comprehensive national strategy for mobilising non-debt financial resources, including grants, climate finance and other concessional funding."
},
{
"id": 1592084,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1592084/?format=api",
"text_counter": 441,
"type": "speech",
"speaker_name": "Balambala, JP",
"speaker_title": "Hon. Abdi Shurie",
"speaker": null,
"content": "This Report is not only a reflection of the current fiscal pressures; it is also a call to action. With coordinated effort, strengthened institutions and adherence to fiscal discipline, Kenya can navigate the present constraints and lay a firmer foundation for inclusive and resilient economic growth."
},
{
"id": 1592085,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1592085/?format=api",
"text_counter": 442,
"type": "speech",
"speaker_name": "Balambala, JP",
"speaker_title": "Hon. Abdi Shurie",
"speaker": null,
"content": "Hon. Deputy Speaker, with that, I beg to move and request Hon. Irene, the Vice-Chair of the Committee, to second. I thank you."
},
{
"id": 1592086,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1592086/?format=api",
"text_counter": 443,
"type": "speech",
"speaker_name": "Hon. Deputy Speaker.",
"speaker_title": "",
"speaker": null,
"content": "Please proceed."
},
{
"id": 1592087,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1592087/?format=api",
"text_counter": 444,
"type": "speech",
"speaker_name": "Bahati, UDA",
"speaker_title": "Hon. Irene Njoki",
"speaker": null,
"content": " Thank you, Hon. Deputy Speaker. I rise to second the Motion as ably moved by our Chairperson. The Report before us is a product of careful analysis, guided by our constitutional obligation to provide oversight over public finances including discretionary expenditures that are not subject to annual appropriation. I commend the Chairperson and members of the Committee for the rigorous scrutiny applied to these Estimates."
},
{
"id": 1592088,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1592088/?format=api",
"text_counter": 445,
"type": "speech",
"speaker_name": "Bahati, UDA",
"speaker_title": "Hon. Irene Njoki",
"speaker": null,
"content": "This year’s CFS allocation stands at Ksh2.14 trillion, a slight reduction from the previous year’s Ksh2.2 trillion, largely due to a decline in debt service costs. This presents a small but strategic window for fiscal relief, which should be used wisely to ease liquidity pressures and boost priority development investments. Public debt service, at Ksh1.9 trillion, remains the single largest expenditure, constituting 89 per cent of the CFS. While the decline in service cost is welcome, it is temporary. The underlying growth in debt stock still poses a long-term risk to fiscal sustainability."
},
{
"id": 1592089,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1592089/?format=api",
"text_counter": 446,
"type": "speech",
"speaker_name": "Bahati, UDA",
"speaker_title": "Hon. Irene Njoki",
"speaker": null,
"content": "The Committee’s recommendations, including reforms in fast-tracking the establishment of the Treasury Single Account, timely pension disbursement and strengthened control over counterpart funding, are aimed at improving fiscal efficiency, liquidity, and credibility. Further, we support calls for diversifying our fiscal deficit financing options by tapping into non-debt sources such as grants, public-private partnerships and climate finance to reduce the cost of debt service. Kenya’s development path must not be derailed by overreliance on expensive debt."
},
{
"id": 1592090,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1592090/?format=api",
"text_counter": 447,
"type": "speech",
"speaker_name": "Bahati, UDA",
"speaker_title": "Hon. Irene Njoki",
"speaker": null,
"content": "In conclusion, this Report lays out a clear path to strengthen fiscal governance and reduce structural rigidities that undermine Budget execution. I urge this House to adopt the Committee’s recommendations. With those few remarks, I second."
},
{
"id": 1592091,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1592091/?format=api",
"text_counter": 448,
"type": "scene",
"speaker_name": "",
"speaker_title": "",
"speaker": null,
"content": "(Question proposed)"
}
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