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{
    "id": 1155828,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1155828/?format=api",
    "text_counter": 151,
    "type": "speech",
    "speaker_name": "Amb. Ukur Yatani",
    "speaker_title": "The Cabinet Secretary, National Treasury and Planning",
    "speaker": null,
    "content": "Our medium-term fiscal consolidation policy targets to progressively reduce the level of fiscal deficit from Kshs862.5 billion equivalent to 6.2 per cent of the GDP in the FY 2022/23 to Kshs634.1 billion equivalent to 3.2 per cent of the GDP in the FY 2025/26. Kenya has implemented reforms in public debt management to strengthen debt transparency and accountability. The depth of coverage and disclosures on public debt information has been enhanced in line with best practices. A broad range of information on public debt is readily available to the general public on the National Treasury website while an Investor Relations Unit within the Public Debt Management Office facilitates investor, lender and public engagements on public debt issues. Kenya’s debt carrying capacity is rated moderate and the overall public debt is sustainable. We have initiated implementation of a set of measures to lower cost and risk in the public debt portfolio. These measures include cancellation of some non-disbursing external loans, re- arrangement of syndicated external loans and increasing the issuance of Treasury Bonds to lengthen the maturity structure and improve debt sustainability indicators. The preferred debt financing are highly concessional loans offered at below market interest rates with long repayment periods. Recourse to commercial borrowing has been maintained at minimum levels. The current legal numerical public debt ceiling has constrained public funding of projects while at the same time failing to consider the effects of external shocks on the economy. In this regard, we propose to replace the debt ceiling with a debt anchor and set it at 55 per cent of debt to the GDP in present value terms. This is in line with internationally accepted conventional practice. Further, we have provided a requirement that the Cabinet Secretary for the National Treasury reports to Parliament whenever the debt levels swings beyond the threshold with time- bound remedial actions. This approach ensures that debt remains within sustainable levels and entrenches accountability and transparency in public debt management. I have forwarded to this august House the necessary changes to the PFM Act to align ourselves to this desired position and request that the House considers it, favorably. The Public Private Partnerships (PPP) Programme has gained traction under the new PPP Act 2021 that has reduced the number of approval processes, introduced timelines and strengthened the institutional framework by elevating the PPP Unit to a directorate in the National Treasury. So far, the Government has achieved closure on a number of projects, of which a key one seeks to deliver over four thousand housing units to frontline Kenya Defense Forces personnel. To ensure projects with the highest socio-economic returns are selected and implemented, we are putting in place a joint Public Investment Management and Public Private Partnership planning framework and strengthening the coordination between Public Debt Management Office and the Public Private Partnership Directorate for effective control of fiscal exposure, as envisioned in the new PPP Act 2021. Further, the Government will fully operationalise the Public Private Partnership Project Facilitation Fund to support activities of the PPP Directorate and those of the contracting authorities in the preparation phase of a project during the tendering processes and project appraisal. In view of the limited fiscal space, the Government will embark on rationalising the existing portfolio of projects being implemented by the national Government and issue regulations for managing public investments. The Government has developed the Public Investment Management Information System, which is expected to be a repository of all projects implemented by the national and county governments. 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."
}