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{
"id": 1592962,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1592962/?format=api",
"text_counter": 430,
"type": "speech",
"speaker_name": "Ndia, UDA",
"speaker_title": "Hon. George Kariuki",
"speaker": null,
"content": " Thank you, Hon. Deputy Speaker. The Member for Msambweni, Hon. Feisal Bader, requested a Statement from the Chairperson of the Departmental Committee on Transport and Infrastructure on Wednesday 9th April 2025. Regarding the high frequency of road accidents along the Likoni-Lungalunga Highway. Among other things, the Member sought to establish: 1. The immediate and long-term measures taken by the Ministry of Roads and Transport to mitigate the frequent road accidents along the Likoni-Lungalunga Highway. 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": 1592963,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1592963/?format=api",
"text_counter": 431,
"type": "speech",
"speaker_name": "Ndia, UDA",
"speaker_title": "Hon. George Kariuki",
"speaker": null,
"content": "2. The steps made by the ministry to erect speed bumps, pedestrian crossings, and other preventive measures in these accident-prone areas as an intervention to reduce the frequency of accidents. 3. The plans in place to improve road signage lighting and enforcement of traffic regulations along the highway to enhance road safety for both motorists and pedestrians. The Committee received a response from the Ministry of Roads and Transport on 12th May 2025, which I now wish to make. Regarding road safety concerns along the said road, the ministry submitted that it is taking short and long-term measures to address them. In the long term, the ministry plans to comprehensively redesign and upgrade the road to meet safety standards. The procurement process for the design consultancy is currently underway under the multinational Bagamoyo- Horohoro/Lungalunga-Malindi Road Project funded by the African Development Bank. In the short term, the road is currently under a performance-based contract that, among other things, incorporates road safety features like road markings and road signs in the scope of what is to be implemented. On the measures taken by the ministry to reduce the frequency of accidents, through the Kenya National Highway Authority, the ministry has identified locations along the road as priority areas for road safety enhancements based on reported accident trends. The maintenance contractor has been directed to implement appropriate interventions including the installation of rumble strips and or standard speed bumps and markings of pedestrian crossings and erection of road signs. Regarding plans to improve road signage, and lighting and enforcement of traffic regulations along the highway to enhance road safety for both motorists and pedestrians, the ministry emphasised that enhancing road safety requires a collaborative approach that integrates engineering solutions, public education and enforcement of traffic regulations. While the ministry primarily focuses on engineering interventions through its road agencies, it works closely with other government agencies to support public awareness and enforcement efforts. Additionally, the Kenya National Highways Authority (KeNHA) has been progressively installing road signs through maintenance contracts but, vandalism of the signs remains a significant challenge particularly in the coastal region. To address this, the agency has started using signage made from non-steel materials to help mitigate vandalism. Hon. Deputy Speaker, I submit."
},
{
"id": 1592964,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1592964/?format=api",
"text_counter": 432,
"type": "speech",
"speaker_name": "Hon. Deputy Speaker",
"speaker_title": "",
"speaker": null,
"content": "Hon. Feisal, are you satisfied?"
},
{
"id": 1592965,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1592965/?format=api",
"text_counter": 433,
"type": "speech",
"speaker_name": "Msambweni, UDA",
"speaker_title": "Hon. Feisal Bader",
"speaker": null,
"content": " Thank you, Hon. Deputy Speaker. The response is satisfactory although I request the Chair at least to give timelines on the short-term interventions by KeNHA."
},
{
"id": 1592966,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1592966/?format=api",
"text_counter": 434,
"type": "speech",
"speaker_name": "Hon. Deputy Speaker",
"speaker_title": "",
"speaker": null,
"content": "I think the Chairperson has noted that. He shall endeavour to give you short-term interventions. Hon. Members, we will now return to Order No. 10r by the Chair of the Public Debt and Privatisation Committee."
},
{
"id": 1592967,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1592967/?format=api",
"text_counter": 435,
"type": "heading",
"speaker_name": "",
"speaker_title": "",
"speaker": null,
"content": "MOTION"
},
{
"id": 1592968,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1592968/?format=api",
"text_counter": 436,
"type": "heading",
"speaker_name": "",
"speaker_title": "",
"speaker": null,
"content": "REPORT ON THE CONSIDERATION OF THE CONSOLIDATED FUND SERVICES FOR THE BUDGET ESTIMATES FOR FY 2025/2026"
},
{
"id": 1592969,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1592969/?format=api",
"text_counter": 437,
"type": "speech",
"speaker_name": "Balambala, JP",
"speaker_title": "Hon. Abdi Shurie",
"speaker": null,
"content": " Hon. Deputy Speaker, I beg to move the following Motion: 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": 1592970,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1592970/?format=api",
"text_counter": 438,
"type": "speech",
"speaker_name": "Balambala, JP",
"speaker_title": "Hon. Abdi Shurie",
"speaker": null,
"content": "THAT, this House adopts the Report of the Public Debt and Privatization Committee on its consideration of the Consolidated Fund Services for the Budget Estimates for the 2025/2026 Financial Year laid on the Table of the House on Wednesday, 11th June 2025. Hon. Deputy Speaker, this marks the seventh Report on the CFS expenditures presented and deliberated by the National Assembly and provides basis for the House to consider non-appropriated and mandatory expenditures of the national government. Hon. Deputy Speaker, I extend my sincerest gratitude to the diligent members of the Public Debt and Privatisation Committee for their unwavering commitment in examining these Estimates of Expenditure and for tabling this Report for our deliberation today. Our appreciation also goes to the key stakeholders who contributed critical insights during the Committee’s sessions and to the Committee secretariat for their support. The Consolidated Fund Service (CFS) expenditures are obligatory expenditures that are deducted directly from the Consolidated Fund and are not included in the Annual Appropriation Bill, as stipulated in Article 221(7) of the Kenyan Constitution. Today, these mandatory expenditures are the largest expenditures of the Government. CFS expenditures in the Financial Year 2025/26 will amount to Ksh2.14 trillion, thus indicating a decrease of Ksh148 billion from Ksh2.28 trillion in the Financial Year 2024/2025. The Committee observed that this decline, which will provide fiscal relief in Financial Year 2025/2026, is largely attributed to reduced debt service costs, and will provide much needed fiscal space that should be utilised prudently. The Financial Year 2025/2026 CFS expenditures constitute of: Public debt service expenses at Ksh1.9 trillion, pension expenditure at Ksh234.9 billion, and salaries, allowances and miscellaneous expenditures at Ksh4.7 billion. Hon. Deputy Speaker, the review of the CFS expenditures for the Financial Year, 2025/2026 presents a timely opportunity to realign our fiscal management strategies towards long-term sustainability and growth. While debt service remains the dominant component, accounting for 89 per cent of CFS expenditure, a projected 7 per cent decline offers a short- term fiscal reprieve. This window, though narrow, should be strategically leveraged to improve budget execution, invest in growth-enhancing sectors, and reduce the burden of non- discretionary expenditures. In the Financial Year 2025/2026, public debt servicing is projected at Ksh1.9 trillion, comprising of Ksh1.3 trillion in domestic debt service and Ksh586.4 billion in external debt service. This reflects a Ksh140.67 billion from the Financial Year 2024/2025. The decline is mainly attributed to a significant drop in redemption costs by Ksh242.59 billion, although this is partially offset by a Ksh101.92 billion increase in interest payments. Interest payments for total debt will reach Ksh1.1 trillion while maturing debt will amount to Ksh803.7 billion. The high interest obligations will account for 40 per cent of ordinary revenue, underscoring the growing cost of debt and its implications for fiscal space. Kenya’s fiscal outlook reflects a notable reallocation of public spending. Between Financial Years 2015/16 and 2025/26, interest payments as a share of GDP is projected to increase from 3.2 per cent to 5.7 per cent while development expenditure will decline from 7.2 per cent to 3.5 per cent. This inverse trend signals a structural crowding-out effect, where escalating debt service obligations are displacing capital investment in infrastructure, education, and other development-enabling sectors. The opportunity cost is notable as resources that could stimulate economic transformation and improve welfare are increasingly diverted toward servicing past borrowing. The broader macroeconomic impact is reflected in the decline of total investment as a share of GDP, from 19.5 per cent in the Financial Year 2015/2016 to just 4.1 per cent for the Financial Year 2025/26. Such underinvestment undermines capital formation, lowers the marginal productivity of labour, and reduces the country’s long-term growth potential. 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": 1592971,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/1592971/?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."
}
]
}