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{
    "id": 1103135,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1103135/?format=api",
    "text_counter": 178,
    "type": "speech",
    "speaker_name": "Sen. Faki",
    "speaker_title": "",
    "speaker": {
        "id": 13211,
        "legal_name": "Mohamed Faki Mwinyihaji",
        "slug": "mohamed-faki-mwinyihaji-2"
    },
    "content": "accruing to or received by the fund from any other lawful source with approval of the CS; and any other source provided for by an Act of Parliament. Expenditures of the fund. Payments out of the fund shall be for redemption of Government loans and payment of expenses incidental to the loans. Other administrative expenditures shall be on the basis of annual work plans and cost estimates shall be prepared by the administrator of the fund, recommended by the Committee and approved by the CS at the beginning of the financial year to which they relate. Establishment of the sinking fund advisory committee. It is proposed that the committee membership shall be made up of; the Principal Secretary (PS) in charge of finance as the chairperson, Director General, PDMO as Secretary, Director-General Accounting Services and Quality Assurance, Director-General Public Investment and Management Portfolio. The key functions of the advisory committee shall include; providing advice on administration of the fund, and reviewing and recommending the revenue and expenditure estimates of the fund to the CS in each financial year. The fund administrator shall be the head of the PDMO Madam Deputy Speaker, some key observations made by the Committee on the guidelines were as follows- (1) Kenya set up the first sinking fund in the 1960s under the Internal Loans Act (Chapter 420 of the laws of Kenya) (2) The fund remained dormant and the process of winding up the fund is currently before the National Assembly (3) Section 50 (8) of the Public Finance Management (PFM) Act permits the CS in charge of the National Treasury, with the approval of Parliament, to establish such sinking fund or funds for the redemption of loans raised under this Act by the national Government. Despite this, Regulation 206 (2) of the Public Finance Management (National Government) Regulations (2015) limits the scope of the fund to payment of expenses of or incidental to redemption of an issue of Government securities and the redemption of an issue of Government securities. Despite the limitation above, the guidelines as currently drafted as per Guideline 3 (2) expand the scope of the fund to include national Government loans that are not envisaged in Regulation 206 (2) of the Public Finance Management (National Government) Regulations (2015). Conflict with the CBK Act. Section 4A (1) of the CBK Act mandates the CBK to formulate and implement foreign exchange policy and hold and manage its foreign exchange reserves. It further observed that Guideline 5 (e) of the guidelines provides that one of the sources of the fund shall consist of foreign exchange gains from external loans to the national Government. The Committee noted that the National Treasury is not mandated to hold foreign exchange reserves, and as a result, Guideline 5 (e) of the guidelines is inconsistent with Section 4A (1) of the CBK Act. The Committee further observed that the guidelines"
}