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{
    "id": 1103139,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1103139/?format=api",
    "text_counter": 182,
    "type": "speech",
    "speaker_name": "Sen. M. Kajwang",
    "speaker_title": "",
    "speaker": {
        "id": 13162,
        "legal_name": "Moses Otieno Kajwang'",
        "slug": "moses-otieno-kajwang"
    },
    "content": "Madam Deputy Speaker, I rise to second the Report of the Committee on Delegated Legislation that has recommended the annulment of the Sinking Fund Regulations that have been brought before the House. In agreeing with the Committee on Delegated Legislation which we have given the responsibility of considering and getting to the details of all the regulations brought before this House, I am satisfied that the Committee in recommending annulment has reached out to the relevant stakeholders; has looked at the merits and demerits of the action that they propose the House to adopt and in doing so, they have put the best interests of the Nation first. A sinking fund is not a new thing. The sinking funds were first established in the United Kingdom in the 1700s. A sinking fund is established by a sovereign entity and they set aside revenue over a period of time to fund a future capital expenditure or repayment of a loan. The sinking fund is generally funded by revenue surplus or budgetary surpluses. In our country over the last couple of years since the Kibaki days we have never had a budget surplus. We are in constant budget deficit. So we cannot have a surplus that we can set aside and say that this money is saved for a specific day when we will be repaying our loans. In fact, it is quite an oxymoron that a country that does not have adequate resources to finance its development and has to go to foreign lenders to advance it loans would then set aside funds for payment of those loans. If we had the money in the first place, we would not even be going for those loans. I think that the thinking is a little bit warped. Even though the PFM Act has provided the space for the CS, Treasury to establish a sinking fund, we must remember that this country has had a sinking fund that was established in the 1960s under the Internal Loans Act. From the 1960s to date that sinking fund has not been operationalized and currently there is a process of winding it down. It would be important for the Treasury to tell us what they will do differently to ensure that this sinking fund is viable. As we have said we do not have a surplus that we can set aside for this. Madam Deputy Speaker, I agree with the Committee on Delegated Legislation especially in its finding that the Central Bank of Kenya has not been appropriately consulted and represented in the proposed oversight and advisory board of the sinking fund. The Central Bank of Kenya is a fiscal agent of the Government of Kenya and in many respects they have done well. It is my view that when it comes to the monetary policy the Central Bank of Kenya has done exceedingly well. I want to laud the Governor of the Central Bank of Kenya and I know that he has been working hard to ensure that he builds the capacity of the CBK. Recently, he tapped into a very experienced person when it comes to matters of economics, a gentleman called Prof. Mudida to head the research department of the CBK. I believe if the CBK tells us that this sinking fund as proposed by the Treasury is not viable then we need to"
}