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{
    "id": 1142395,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1142395/?format=api",
    "text_counter": 161,
    "type": "speech",
    "speaker_name": "Funyula, ODM",
    "speaker_title": "Hon. (Dr.) Wilberforce Oundo",
    "speaker": {
        "id": 13331,
        "legal_name": "Wilberforce Ojiambo Oundo",
        "slug": "wilberforce-ojiambo-oundo-2"
    },
    "content": "provide for charging of all or part of the public debt to other public funds while Clause 2 provides that for the purpose of this Article, the “public debt” means “all financial obligations attendant to loans raised or guaranteed by the national Government”. It was indicated that while Section 50(8) of the PFM Act provides for the establishment of a Sinking Fund for the redemption of loans raised under the Act by the national Government, the loans defined by the PFM Act 2012 includes both internal and external loans. Consequently, there is need for the repeal of the General Loans and Stock Act (Cap.419) which provides for the redemption of external debts from the United Kingdom. Further, Regulation 206 of the PFM (National Government) Regulations 2015 established the Sinking Fund and delegated the power to prepare and publish the guidelines for the operationalisation of this Fund. The Sinking Fund envisaged under the PFM Act 2012 is for redemption of both domestic and external loans including the payment of expenses of, or incidental to, loans and shall be used for that purpose. Hon. Deputy Speaker, pursuant to Section 16 of the Statutory Instruments Act 2013, the Committee held a meeting with the regulatory making authority on Wednesday, 1st September 2021, in Mombasa. The Committee considered the guidelines against the Constitution, the Interpretations and General Provisions Act, the PFM Act, the Statutory Instruments Act and the PFM Regulations 2015. During the scrutiny, the Committee took note that the guidelines in particular provides for: 1. The definition, objects and purpose of the Fund. 2. The capitalisation of the Fund which shall be appropriated by Parliament from time to time. 3. Sources of the funds. 4. The Governance structure of the Fund, which comprises of the advisory committee, the Fund administrator and the secretariat of the Fund appointed by the CS in charge of the National Treasury. Following a comprehensive scrutiny of the Guidelines, the Committee found the following:- (i) THAT, the Guidelines as published contravene Section 13 (h) of the Statutory Instruments Act ( No.23 of 2013 ). The enabling provision invoked the wrong reference as it was made under the Public Finance Management (National Government) Regulations, 2015. (ii) THAT, Section 50 (8) of the Public Finance Management Act, 2012 grants power to the Cabinet Secretary for the National Treasury to establish by way of Regulations approved by Parliament, such Sinking Fund or Funds for the redemption of loans raised under the Act by the National Government. The Cabinet Secretary, therefore, ought to have made Regulations in respect to Sinking Funds which were to be approved by the National Assembly by way of affirmative resolution. The publication of the Guidelines is, therefore, a contravention of Section 13 (a) of the Statutory Instruments Act ( No.23 of 2013 ). (iii)THAT, the Explanatory Memorandum submitted alongside the Regulations does not comprehensively demonstrate the details of consultations with the public as to the dates and responses as required under the Schedule to the Statutory Instrument Act – hence it was not possible to analyse the extent of public participation or level of consultation conducted required under Section 5 of the Statutory Instrument Act and the spirit and letter of Articles 10 and 118 of the Constitution of Kenya, 2010. 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."
}